Italy Inpatriate Regime 2025: 70% Tax Exemption Explained

Italy Inpatriate Regime 2025: 70% Tax Exemption

Italy’s inpatriate regime rewards workers relocating to Italy by excluding 70% (or 90% in southern regions) of employment income from taxable income for five years, extendable in certain cases.

Eligibility Requirements

• Non-resident in Italy for the previous three years.
• Commit to Italian residency for at least two years.
• Work predominantly within Italy for an Italian employer (or foreign employer with an Italian PE).
• Hold managerial, specialised, or highly qualified roles.

Extension Options

Extend the benefit to ten years by purchasing residential property in Italy or having dependent children. The exemption drops to 50% during the extension period.

Application Process

Notify the employer with a self-certification letter so payroll applies reduced withholding. Freelancers apply via their tax returns. Retain documentation proving prior residency abroad and Italian relocation.

Coordination with Other Incentives

Combine the regime with regional incentives, pension contributions, and optional flat tax regimes for new residents to further decrease liabilities.

Planning Tip: Confirm eligibility before relocating, align employment contracts with Italian compliance, and consult a commercialista to integrate the inpatriate regime with broader financial goals.