Why Moving To Italy Could Be Financially Positive

Moving to Italy could be a seriously smart move for workers, retirees and high net worth individuals (HNWIs) looking to make their money stretch further. According to the Italian Chamber of Commerce and Industry for the UK, there are three special tax regimes that are serving to attract a diverse range of individuals from different backgrounds to Italy.

Aiming to attract highly skilled employees and entrepreneurial self-employed individuals, the “impatriate” tax regime applies to taxpayers who commit to move their tax residency to Italy for at least two years. They have to work mainly from Italy, with business trips abroad not exceeding 183 days per year. The reward for those who take up the offer is a 70% income tax exemption. For individuals who move their residence to one of the Southern Italian regions (Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia and Sicily), that exemption bumps up to 90%.

The impatriate tax regime runs for five years, with the possibility to extend it for a further five years at a reduced 50% income tax exemption rate. The extension is an option for those who have a child under the age of 18 or who purchase a residential property in Italy at any time during the year before they become tax resident there or the five years after.

That said, it’s important that potential immigrants stay up to date with the latest financial incentives. At present, the Italian government is reviewing and reforming its taxation system, including the impatriate tax regime. Alessandro Belluzzo, President, Italian Chamber of Commerce and Industry for the UK, has warned that the percentage of tax benefit currently offered may reduce and that the conditions necessary to access it may alter, though nothing has been approved so far.

“Draft taxation reforms that have been published in Italy indicate that the impatriate tax regime may be changing in the near future. Yet there is no indication that the scheme will end. As such, anyone considering making a move to Italy needs to keep up with the latest legislation and factor that into their plans.”

Alessandro Belluzzo, President, Italian Chamber of Commerce and Industry for the UK

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