Skip to content The Italian Revenue Agency has recently provided important guidance on the application of the special tax regime for inbound workers (regime impatriati), with specific reference to cases in which tax residence is transferred to an Italian region different from the one originally chosen for the purposes of accessing the enhanced benefit.
The clarification, set out in Ruling No. 76, provides greater certainty as to the conditions for maintaining the enhanced tax relief under Article 16, paragraph 5-bis, of Legislative Decree No. 147/2015, as well as the applicable rules governing the ordinary regime where residence is subsequently relocated.
The facts of the case and the taxpayer’s request
The taxpayer stated that he had spent several years abroad for employment purposes and had been duly registered with the Italian Register of Italians Resident Abroad (A.I.R.E.) for more than two tax periods prior to his return to Italy.
In 2023, he transferred his tax residence to Puglia, a region included among those eligible for the enhanced benefit under paragraph 5-bis, and commenced employment with an Italian company, benefiting from the 90% exemption applicable to employment income under the inbound workers regime.
Subsequently, in January 2024, he entered into a new employment relationship in Rome and, in April 2025, transferred his registered residence to Rome, in Lazio, which is not included among the qualifying regions listed under the relevant provision.
The taxpayer therefore submitted a number of questions to the Revenue Agency seeking clarification as to: whether the transfer from a qualifying region to a non-qualifying one entails the definitive loss of the enhanced 90% tax relief; whether, in the event of loss of the enhanced benefit, the ordinary 70% relief may continue to apply for the remaining years of the five-year period, from which moment such reduction should apply, and whether any retroactive adjustment is required for prior tax years; and how the regime would apply in the event of a subsequent transfer back to a qualifying region.
The Revenue Agency’s position
The Agenzia delle Entrate confirmed that, pursuant to the applicable legislation and the interpretative guidance contained in Circular No. 33/E of 2020, the requirement that residence remain in a qualifying region constitutes an essential condition for entitlement to the enhanced 90% inbound workers regime.
Accordingly, the transfer of residence to a region other than those listed in paragraph 5-bis results in the retroactive loss of the enhanced benefit, effective from the very tax period in which residence was first transferred to Italy (in the case at hand, tax year 2023).
However, the taxpayer may continue to benefit from the ordinary 70% relief, provided that all other statutory conditions of the inbound workers regime remain satisfied. The ordinary relief therefore applies from the same tax period in which residence was transferred to Italy.
On this basis, any tax difference arising from the prior application of the 90% exemption must be regularised through the filing of an amended tax return, together with payment of the additional tax due, accrued interest and any penalties provided for under Legislative Decree No. 471/1997.
The Revenue Agency also clarified that a subsequent transfer back to a qualifying region does not restore entitlement to the enhanced 90% relief once lost.
Conclusions
Ruling No. 76 confirms that access to the enhanced inbound workers regime is strictly linked to continuous residence in one of the Southern and Central-Southern Italian regions expressly identified under Article 16, paragraph 5-bis, of Legislative Decree No. 147/2015.
Although relocation to a non-qualifying region results in loss of the enhanced 90% benefit, this does not prevent continued application of the ordinary 70% regime, provided that the general requirements remain fulfilled.
The Revenue Agency’s clarification highlights the importance of carefully monitoring the tax residence of inbound workers and promptly regularising the tax position in the event of any change, in order to avoid exposure to tax reassessment, interest and penalties.
A&P assists its clients in the application and ongoing management of preferential tax regimes for inbound workers, including matters connected with transfers of residence.
Exceptr: Ruling No. 76 by the Italian Revenue Agency clarifies that relocating residence from a tax-advantaged region to one not included in Article 16, paragraph 5-bis, of Legislative Decree No. 147/2015 results in the retroactive loss of the enhanced impatriate regime benefit, with the ordinary 70% relief applying and a corresponding obligation to regularize taxes