An approved amendment to the 2019 Budget Law decree (actually still under parliament discussion) will anticipate the major tax discounts for impatriate workers who return to Italy after a period of at least two years spent abroad.
According to Decree Law 34/2019 the changes would have been applied only to workers who had transferred their tax residence to Italy starting from 2020.
Instead, as a result of the amendment, the benefits will be granted not only to Italian and foreign workers, who will transfer their residence from 2020, but also to those who have done so since 2019 April 30th, thus including in the first year of facilitation the 2019 incomes.
According to the italian tax rules the workers must be registered in one of the Italian municipalities and, to be considered tax residents, they will have to stay in Italy for at least 183 days (or 184 in the event of a leap year, as in 2020).
The incentive, in the “old” version, consisted of a 50% discount on taxable income for a maximum of 5 years starting from the one of the transfer of the residence in Italy.
The “enhanced” version introduced by Law Decree 34/2019 starts from the same 5 years duration but rises to 10 for workers who have at least one child who is underage or fiscally dependent or who also become owners of a property in Italy from the year preceding the transfer . The incentive consists in a taxable income reduction by 70%, and it may be extended to a 90% discount for the first 5 years for those who will move to one of the eight South regions; in the second five-year period the discount will be increased to 90% for those who have at least 3 children underage or fiscally dependent.
Our firm can assist international clients, as we do, not only to relocate their residence to Italy, but also to opt for the new resident not domiciled tax package. Contact us with confidence, we have experience about this matter.