What Is the "Lavoratori Impatriati" Tax Regime in Italy?

The "Lavoratori Impatriati" is a special, temporary preferential tax regime available to workers who relocate their residence to Italy. This regime is designed to attract talent and professionals from abroad by offering significant tax benefits to those who meet specific criteria.

Key Features of the "Lavoratori Impatriati" Regime

Purpose

The "Lavoratori Impatriati" regime is aimed at encouraging individuals to move to Italy for work by providing them with reduced tax liabilities. This program is particularly attractive to expatriates and Italian citizens who have been living abroad and wish to return to Italy.

Eligibility Criteria

To qualify for the "Lavoratori Impatriati" tax regime, individuals must:

Transfer Their Residence to Italy: The individual must establish their tax residence in Italy, which typically involves staying in the country for more than 183 days per year.
Have Not Resided in Italy Recently: Generally, the individual must not have been a tax resident in Italy for at least two tax periods prior to their return.
Employment or Business Activity: The regime applies to workers who are employed, self-employed, or run a business in Italy.

Tax Benefits

Under this regime, a significant portion of the individual's income (up to 70% or more in certain cases) is exempt from taxation in Italy. This reduction applies for up to five years, with the possibility of extension in some cases, making it a highly advantageous option for those eligible.

How to Apply for the "Lavoratori Impatriati" Regime

Self-Declaration Requirement

Employees who wish to take advantage of the "Lavoratori Impatriati" tax regime must inform their employer of their eligibility. This is done through a self-declaration, where the employee certifies that they meet all the required conditions for the preferential tax treatment.

Self-Declaration: The employee must submit a self-declaration form to their employer, stating that they qualify for the regime. This document is crucial for ensuring that the employer can apply the correct tax benefits to the employee's salary.

Employer’s Role

Once informed, the employer is responsible for applying the tax benefits accordingly, adjusting the employee's payroll to reflect the reduced tax liability under the "Lavoratori Impatriati" regime.

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