The special tax regime for inpatriate workers

Find out more about all the advantages for taxpayers and companies with the special tax regime.

Extensive Experience at Your Service

Our tax consultants can provide advice and assistance in the compilation of the forms to present to the employer. We provide full support to benefit from the special tax regime for inpatriate workers.

Foreign workers who decide to move to Italy will have access to large exemptions on income compensation. This includes employment, self-employment or business activity for a period of 5 to 10 years.

For more information, do not hesitate to contact our Experts!

Advantages of the Special Tax Regime

for Taxpayers

Special Tax Regime for taxpayers
This tax regime has considerable advantages for the taxpayer. By transferring the residence in Italy, the income produced in the Italian territory will be taxable only for the 30%.
Taxation will be up to 10% for the first 5 years.
 
Additional possibility to tax from the 50% up to the 10% of the produced incomes for the next 5 years. Further conditions should apply.

for Companies

Special Tax Regime for companies

The special tax regime allows companies to be more competitive during the negotiation of new hires. Companies will have the opportunity to attract staff from abroad thanks to:

  • The possibility to offer a higher net income at the same business cost, or
  • Contain the business costs at the agreed net income, always with respect of the CCNL Italian Regulations.

Our Assistance from Start to Finish

We offer full support in compiling forms, negotiating contracts and counseling for audits from the Revenue Agency.

1. Compiling the Forms

Recommendation and assistance in compiling the forms to be presented to the employer.

After a preliminary phone call and evaluating the specific situation of the customer, Arletti & Partners will send a fee quotation with a detailed explanation of all our services.

In case of acceptance, we will send the list of documentation to be provided for the completion and submission of the application to the employer, in order to take advantage of the inpatriate tax relief.

2. Assistance during the Negotiation

Our support to ensure the applicability of the regime.

Arletti&Partners can support the company and the taxpayer during the negotiation phase of the employment contract in order to ensure the applicability of the regime.

Arletti&Partners is able to provide simulations, tax briefings with the candidate, dedicated consultancies and prepare additional clauses on the employment contract that protect the company and the candidate in the application of the inpatriates regime.

3. Service Packages

Two types of packages to meet the different needs of the customer.

With the Light Service Package we help you prepare your application to present to your employer. We will also provide you with a list of supporting documents to be collected and stored independently in the event of audit by the Revenue Agency.

With the Full Service Package we analyze the documentation supporting your request: we will create an ad hoc file to assist you in case of an audit by the Revenue Agency, taking responsibility for any penalties and interests.

4. Consultation to the Revenue Agency

We support our clients in submitting the application to the Revenue Agency (Agenzia delle Entrate).

In case of uncertainties or interpretative doubts about the applicability of the tax relief, we can proceed to submit a consultation to the Revenue Agency.
 
Should the applicability of the tax relief not be certain for a specific situation, Arletti&Partners will submit all uncertainties to the Revenue Agency for consultation, in order to clarify any interpretative doubts about the legislation.

5. Assistance in case of audit by the Revenue Agency

Arletti&Partners can support you in case of audit by the Italian tax authorities.

In case of audit by the Revenue Agency, we offer support by dealing directly with the relevant offices, in order to provide the explanations and documentation required.

This service is already included in the Full Service package.

6. Refund of the credit through the Italian Tax Return

We provide assistance to be able to claim the tax benefit in the Tax Return.

If the application to the employer was not submitted at the time of arrival in Italy, it is possible to set a phone call with A&P.

We will assess the specific situation of the customer and request a refund for past years where possible.

Requirements and Cases

In the current version of the law, workers who transfer their residence to Italy (from April 30, 2019)  to start an employed, a self-employment or business activity can benefit from the special tax regime for inpatriate workers.

They need to meet the following requirements and cases:

  • Transfer the tax residence in Italy under the Article 2 of TUIR;
  • Not having been fiscally resident in Italy during the 2 tax periods prior to the transfer;
  • Commitment to maintain tax residency in Italy for a minimum of 2 tax years;
  • Perform the work activity mainly in the Italian territory.
  • Being EU citizen or non-EU Country having a tax treaty to avoid the double taxation or an agreement for the exchange of information in force with Italy;
  • Having an university degree (bachelor or master degree)
  • Having continuously carried out an employment, self-employment or business activity outside Italy during the last 24 months prior to arrival or having studied abroad and obtained an university degree or postgraduate master’s degree during the 24 months prior to arrival.

The Legislation of the Special Tax Regime for Inpatriates

According to Article 16 of the Legislative Decree no. 147/2015, an important tax relief is granted on the income from employee, self-employment or business activity produced in Italy by workers who transfer their residence in Italy.

The tax relief provides that such income is taxable to the extent of 30% to 10% for the first five years, and with the possibility to tax the income from 50% to 10% for the next five years only if certain conditions apply

For workers who have transferred their tax residence in Italy before April 30, 2019, it is necessary to verify the presence of the requirements of the previos version of the tax relief.

Our Team of Professional Tax Advisors and Consultants

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