With Reply No. 317/2024, the Italian Revenue Agency has completed an initial and significant line of interpretation concerning access to the new preferential tax regime for inbound workers (“impatriates”), introduced by Article 5 of Legislative Decree No. 209 of 27 December 2023.
The document forms part of the broader framework of clarifications issued by the tax authorities during the initial application phase of the reform and helps define the operational boundaries of the new legislation.
In particular, Reply No. 317/2024 is noteworthy as it addresses access to the tax benefit in cases involving prior employment relationships and periods of unpaid leave, circumstances that frequently arise in international mobility scenarios.
The case
The request concerns an employee who, following a period of unpaid leave, carried out an assignment abroad, transferring her tax residence outside Italy and duly registering with the A.I.R.E. (Register of Italians Residing Abroad). Upon completion of the assignment, the employee returned to Italy and resumed work with the same employer with whom she had been employed since 2001.
The taxpayer asked whether, under the new impatriates regime introduced by Article 5 of Legislative Decree No. 209 of 27 December 2023, she may benefit from the tax relief despite returning to Italy after a period of unpaid leave.
The Italian Revenue Agency’s response: access to the impatriates regime after unpaid leave
The Italian Revenue Agency clarified that the previous administrative practice (Circular No. 33/E of 28 December 2020), which excluded access to the impatriates regime in cases of return from unpaid leave, referred to the former legislation, which has now been repealed.
Under the new wording of Article 5 of Legislative Decree No. 209/2023, there is no longer any automatic exclusion for workers returning from unpaid leave. What matters instead is the objective requirement of having been resident abroad for a certain period prior to returning to Italy, regardless of the contractual arrangement under which the activity abroad was carried out. This amendment represents a significant change, broadening access to the regime to workers who, prior to their return, had taken unpaid leave.
Tax relief provided under the regime
Under the new impatriates regime, where the relevant conditions are met, income produced in Italy is subject to a 50% tax reduction. In particular:
- Employment income and similar income, as well as self-employment income derived from the exercise of arts or professions, up to an annual limit of EUR 600,000, are included in taxable income only at 50% of their amount;
- The benefit applies from the tax period in which tax residence is transferred to Italy and for the four subsequent tax periods;
- Tax residence must be maintained in Italy for at least four years, failing which the benefit is revoked and the tax relief already claimed is recovered, together with interest.
Further clarifications provided by the 12 March 2025 rulings
Replies No. 71/2025 and No. 74/2025 clarified that the requirement of qualification or specialisation may be satisfied either through academic qualifications or through qualified professional experience, provided that it is adequately documented and consistent with the activity carried out. The Italian Revenue Agency specified that the technical assessment of qualification falls within the remit of the competent authorities and not the tax administration.
Reply No. 72/2025 clarified that the increased minimum period of foreign tax residence required by law, set at three tax periods for individuals transferring to Italy and extended to six or seven years where, after returning, the individual works for the same employer (or group) as before or during the foreign assignment, also applies to individuals returning to Italy to carry out self-employment activities.
Where the individual starts a self-employment activity and issues invoices predominantly (though not exclusively) to a company belonging to the same group as the company for which they were employed abroad, the Italian Revenue Agency confirms that the “enhanced” foreign residence requirement applies for access to the regime.
Reply No. 70/2025 clarified that the regime also applies to individuals who transfer to Italy for the first time, provided that the requirements concerning minimum foreign residence, qualification/specialisation, and the predominantly Italian performance of the activity are met.
Employment continuity
The reply under consideration further clarifies that the new impatriates regime does not exclude access to the benefit where there is continuity with a prior employment position in Italy before expatriation. Such continuity is relevant only for determining the minimum period of residence abroad, which is longer than the standard period, and does not in itself prevent application of the regime.
In the case examined, since there is no coincidence between the employer with whom the applicant carried out the activity abroad and the employer for whom she will work after returning to Italy, the minimum foreign residence period required is three tax periods. For this purpose, it is irrelevant that the employee was placed on unpaid leave prior to the transfer abroad, confirming the main novelty of the ruling.
Conclusion
Accordingly, subject to compliance with the other conditions laid down by the legislation, the applicant may benefit from the new impatriates regime, enjoying a 50% tax reduction on income produced in Italy, starting from the tax period in which tax residence is transferred to Italy and for the maximum duration permitted by law.
To explore how to access the regime and assess one’s specific situation, our in-depth analysis of the impatriates regime is available on the firm’s website: Impatriates Regime – Arletti Partners.