Italy · Tax regime

Impatriate Workers Regime (Lavoratori Impatriati)

Reformed Last verified July 2026

Cut back sharply by Legislative Decree No. 209/2023 for transfers from 2024 onward: the old 70–90% exemption with a possible 10-year run was replaced by a 50% exemption on income up to EUR 600,000, for 5 years. Unchanged through 2025 and 2026.

Mostly irrelevant to a UHNW principal — it relieves Italian earned income, not foreign investment income, so it does nothing for a portfolio. Its real use in a family plan is for the next generation: an adult child taking an Italian executive role can stack the impatriate relief on their salary while the principal sits under Article 24-bis. Note the two regimes are mutually exclusive for the same person.

Qualifying routes

€600k
Standard

50% of qualifying Italian-source employment or self-employment income up to EUR 600,000 excluded from the tax base

€600k
With a minor child

exemption rises to 60% where the worker relocates with a minor child, or has/adopts a child during the benefit period

The facts

Qualifying figure
€600k
Total landed cost
No cost — a relief, not a charge. Worth up to roughly EUR 140k per year in tax saved at the top rate on EUR 600k of income.
Physical presence
Italian tax residence required, and the work must be performed mainly in Italy
Family
applies to the individual worker; the enhanced 60% rate depends on the worker's own minor child
Permanent residency
n/a — a tax relief
Citizenship
n/a
Language test
n/a
Dual citizenship
Permitted
Requirements
transfer of tax residence to Italynot tax resident in Italy for the 3 preceding tax periods (6 if previously employed in Italy by the same employer or group)commitment to remain Italian tax resident for at least 4 yearswork performed mainly within Italyhigh qualification or specialisation requirements apply
What can go wrong
  • Only Italian-source employment and self-employment income qualifies. Foreign investment income, dividends and gains get nothing.
  • The EUR 600,000 cap means income above it is fully taxed at ~47.2%.
  • A binding four-year Italian tax residence commitment attaches: leave early and the relief is clawed back with interest.
  • Three years of prior non-residence is the baseline, but six years if you previously worked in Italy for the same employer or group — a rule that catches returning secondees.
  • 5 years only, with no extension mechanism — the old 5+5 with property purchase or children is gone for post-2024 arrivals.
  • Cannot be combined with Article 24-bis for the same individual.
Sources (3)

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