Skip to content Article 5, paragraph 2-bis, of Decree-Law No. 34 of April 30, 2019 (the so-called Growth Decree), converted with amendments by Law No. 58 of June 28, 2019, introduced the possibility of extending for an additional five tax periods the special regime provided for impatriated workers, already regulated by Article 16 of Legislative Decree No. 147 of September 14, 2015.
The regime can be extended for an additional five tax periods if certain conditions are met. In particular, this extension is granted to:
- Workers with at least one minor or tax dependent child, including in pre-adoptive foster care;
- Workers who purchase, directly or through their spouse, partner or children (including jointly owned), at least one real estate unit for residential use in Italy within the 12 months prior to or after the transfer.
In both cases, tax-advantaged income contributes to total income limited to 50% of its amount. Taxation is further reduced to 10% for workers with at least three minor or tax dependent children, including those in pre-adoptive foster care.
It is important to note that the two conditions mentioned above are alternatives and not cumulative. In fact, the regulations use expressions such as “even in the case where” and “in both cases,” suggesting that the extension can only be enjoyed once, regardless of the simultaneous presence of both conditions.
It follows that the maximum allowable period for the regime is 10 years (five original plus five additional), even if both conditions are met.
Learn more about the impatriate regime in our comprehensive guide.
How to apply for the additional five years?
In order to obtain the extension of the special regime for an additional five years, it is first necessary to verify that the requirements of the current regulations are met.
- Employees with an Italian employer must reapply for the payroll benefit, according to the updated conditions.
- Individuals without an Italian employer, on the other hand, will have to apply the benefit in their tax returns.
Arletti & Partners can support you at all stages of the process, from verifying requirements to assisting with communication and/or declaration.