The impatriati tax regime in 2026–2027: 50% off your Italian income tax

The benefit

If you move your tax residence to Italy and work here, 50% of your qualifying employment or self-employment income is exempt from IRPEF (Italian income tax) for 5 years. The exemption is 60% if you move with a minor child or have one during the period, and it applies to income up to €600,000 a year.

On a €120k salary, that can cut your Italian income tax roughly in half, often to around €20–21k, depending on regional and municipal surcharges.

Requirements (moves from 2024, Legislative Decree 209/2023)

• Not an Italian tax resident for the previous 3 years, rising to 6 years if you keep working for the same employer or group (7 if you previously worked for it in Italy)
• High qualification or specialization: a degree, or relevant professional experience
• The work must be physically performed in Italy
• Stay an Italian tax resident for at least 4 years, or the benefit is clawed back
• The old 90% exemption for the South no longer applies to new arrivals

What changes for 2027 moves

Decree-Law 38/2026 (in force from March 28, 2026) bars combining the impatriati regime with the flat tax for new residents for anyone moving tax residence in 2027 or later. People who move by December 31, 2026 keep the older framework. For most salaried workers, who were never going to use the €200k flat tax, this changes little. Confirm the lookback rules that apply to your move year with a commercialista.

Traps for remote workers

• Your employer must agree to you working from Italy. Payroll withholding and 'permanent establishment' risk are often the real blockers.
• For US citizens, lower Italian tax means a smaller Foreign Tax Credit, so you may owe some US tax on the exempt half. Model both sides together.
• Italian citizens need proof of their years abroad, such as AIRE registration or tax residence in a treaty country.