New Clarifications on the Impatriate Regime

The Italian Revenue Agency has recently clarified the impatriate tax benefits (regime impatriati) through a series of official responses (interpelli). These updates mark a shift toward a more flexible interpretation of the rules, offering greater accessibility for expats and professionals looking to benefit from the scheme.

Updated Requirements for High Qualification or Specialisation

The Agency addressed the eligibility criteria regarding high qualification or specialisation for accessing the tax incentives. Previously, a three-year university degree was considered a key requirement. However, the updated interpretation broadens the criteria significantly. To qualify, a worker must meet at least one of the following conditions:

1. A higher education qualification (tertiary level, minimum duration of three years);
2. A post-secondary vocational qualification of at least three years;
3. Authorization to practice a regulated profession in Italy;
4. A higher professional qualification demonstrated through work experience.

This change is particularly relevant for professionals moving to Italy under the new version of the impatriate tax benefits. It applies to individuals transferring their tax residence to Italy from the 2024 tax year onward.

No Direct Link Required Between Relocation and Employment

Agenzia delle Entrate, moreover, clarified the functional connection between moving to Italy and starting a job. Previously, it required a strict link between tax residency transfer and the beginning of employment. However, under the new guidelines:

• There is no longer a requirement for an immediate connection between arrival in Italy and employment.
• Expats may qualify for the scheme even if they start working after relocating.
• The tax benefit applies as long as the individual generates taxable income in Italy.

This is a significant change, making it easier for expatriates to transition into the Italian workforce without losing eligibility for tax incentives.

Key Takeaways for Expats

While these clarifications come from interpelli responses, meaning they do not have legislative authority, they signal a positive shift in favor of impatriates. The Italian tax authorities appear more open to flexible interpretations, which can be beneficial for expatriates and skilled workers looking to establish their tax residency in Italy.

For those considering a move, this evolution of the impatriate tax benefits presents greater opportunities to benefit from Italy’s attractive tax incentives. If you’d like us to assess your situation in detail, please contact us.