Skip to content Ruling No. 2/2026 clarifies that employees who transfer their tax residence to Italy while continuing to perform their work remotely for a foreign employer may also qualify for the new preferential inbound workers regime introduced by Article 5 of Legislative Decree No. 209 of 27 December 2023.
The case
The ruling concerns an employee who relocated to the United Kingdom in December 2020 and subsequently registered with AIRE (the Register of Italians Resident Abroad). She worked for two UK-based companies until September 2025.
Thereafter, the taxpayer moved to Italy with the intention of settling there permanently and entered into a new employment relationship under an Italian contract, while predominantly continuing to perform her duties remotely for an employer with its registered office abroad.
The taxpayer sought confirmation that she could benefit from the inbound workers regime notwithstanding that her employer was foreign and did not apply Italian payroll withholding taxes.
The question submitted
The applicant maintained that she could independently claim the preferential regime in her income tax return, based on the fulfillment of the following conditions:
- Transfer of tax residence to Italy;
- Possession of the qualification and specialization requirements set forth by law;
- No tax residence in Italy during the three tax periods preceding the transfer;
- Performance of work predominantly within Italian territory.
According to the applicant, the foreign employer’s failure to operate Italian withholding taxes should not preclude access to the benefit, provided that the employee independently complies with the statutory requirements and reports the Italian-source income accordingly.
Opinion of the Italian Revenue Agency
The Italian Revenue Agency confirmed that the preferential regime applies to workers who transfer their tax residence to Italy and that, pursuant to Article 23 of the Italian Income Tax Code (TUIR), only income sourced in Italy is relevant for the purposes of the benefit. In the case of employees working remotely for a foreign employer, this entails that:
- The regime may apply starting from the tax year in which tax residence is transferred to Italy;
- The essential condition is that the relocation is genuine and that tax residence is effectively established in Italy;
- It is not necessary for the employer to apply Italian payroll withholding taxes, as the benefit may be claimed directly in the income tax return;
- The relief remains subject to compliance with the additional requirements set forth in Article 5 of Legislative Decree No. 209/2023 (minimum prior period of residence abroad, predominant performance of work in Italy, and qualification/specialization requirements).
Conclusions
Ruling No. 2/2026 provides important clarification for inbound workers performing remote work for foreign employers, as well as for multinational groups managing international employees.
It confirms that relocation to Italy is not contingent upon having an employer resident in the country and reiterates that the inbound workers regime may be claimed independently, provided that both the objective and subjective statutory requirements are met.
The ruling highlights the importance of properly determining the territorial allocation of income and strengthens tax certainty for individuals returning to Italy under foreign employment contracts, thereby supporting the international mobility of highly skilled workers.
A&P Firm assists clients in managing the relocation of inbound workers to Italy, providing legal and tax support for access to the preferential regime set forth in Article 5 of Legislative Decree No. 209 of 27 December 2023.