Regime Rate
50%
Under the Impatriate Regime
Standard Top Rate
43%
without this regime
Duration
5 yrs
Maximum 5 years from application
Target Profile
Income Exemption
Italy
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under Impatriate Regime
€37 500
Standard Rate
€45 150
Annual Saving
+€7 650
Eligibility Requirements
Who qualifies?
- Workers not resident in Italy for prior 3 years, moving to Italy
How the Regime Works
Full details
50% of employment/self-employment income exempt from IRPEF. Extension to 8 years if buying a house in Italy or having children. 90% exemption if relocating to Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, or Sicily.
Regime vs Standard Rates in Italy
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 43% | ~21.5% effective | -21.5pp |
Frequently Asked Questions
What is the Impatriate Regime in Italy?
The Agevolazioni per i Lavoratori Impatriati is a special tax regime in Italy that provides 50% flat rate to qualifying individuals or entities. 50% of employment/self-employment income exempt from IRPEF. Extension to 8 years if buying a house in Italy or having children. 90% exemption if relocating to Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, or Sicily. Legal basis: Art. 16 D.Lgs 147/2015; modified by DL 209/2023.
Who is eligible for the Impatriate Regime?
Eligibility for the Impatriate Regime is limited to: Workers not resident in Italy for prior 3 years, moving to Italy. Applicants typically must not have been Italy tax residents during a specified prior period. Always verify current conditions at the source: Art. 16 D.Lgs 147/2015; modified by DL 209/2023.
How much tax do you pay under the Impatriate Regime?
The Impatriate Regime exempts a significant portion of your qualifying income from Italy income tax. On a gross income of €150,000, this typically results in substantially lower tax compared to the standard 43% top rate.
How long does the Impatriate Regime last?
The Impatriate Regime lasts for 5 years from the year you first qualify. After this period, standard Italy tax rates apply unless you qualify for another regime or change tax residency.
How do I apply for the Impatriate Regime?
Application procedures for the Impatriate Regime are set out in Art. 16 D.Lgs 147/2015; modified by DL 209/2023. You typically need to file a formal application with Italy's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.