Implementation of the special tax regime on incomes generated through remote working

With the reply to ruling no. 186 from 2022, the Revenue Agency confirms the possibility of obtaining a lighter regime as a returning employee working for a foreign company. This reply specifically concerns an executive working for an American company, who decided to come back to live and work remotely in Italy before the month of June 2022.

The document also replies to the concerns regarding the 5 year long reduction period that is offered in case the employee buys a residential property in Italy and it gives information on how to apply to recive the incentive.

Conditions to benefit from the regime

The article no 16 from the legislative decree from september 14th 2015 no. 147 states that the special regime for returning workers is meant for the employees who:

• Transfer their residence to the territory of the State pursuant to art. 2 of the TUIR;
• Have not been resident in Italy in the two tax periods prior to the transfer and undertake to reside in Italy for at least 2 years;
• Carry out the work activity mainly in the Italian territory.

In addition to that, the same article claims that the returning worker is also eligible for a 5 year long benefit if one of these two requirements are satisfied:

• Being the parent or the foster to at least one minor.
• Buying a residential property on Italian soil after moving or 12 months before

The position taken by the Revenue Agency

The article does not directly refer to employees working for foreign companies, but the agency takes us back to the resolution no. 33/E from 2020, which clarifies that the same article does not require that the company or the employer is based in Italy, extending benefits to those working for foreign businesses.

The same workers are also eligible for an extension of a 50% benefit for five more years (in addition to the usual 4 years) in case they buy a house in Italy.

As far as the application is concerned, according to the resolution no. 33/E from 2020, the employee can either submit a request to their employer or, in case the employer is not based in Italy and does not act as the withholding agent, the worker can directly submit the 730 form or the personal income template filling the C section for special instances and including the already reduced income.