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New (lower) tax rates from 2020 for those who decide to move to Italy

New (lower) tax rates from 2020 for those who decide to move to Italy

Back in 2015 ( Dlgs 147/2015) a temporary tax benefit for graduate workers who move their residence in Italy was introduced , granting the exemption from taxation of 50% of their income for the 5 following years .

Article. 5, D.L. n. 34/2019 has now redesigned part of the rules, extending the incentive now that applies – starting Jan 2020 – to taxpayers who transfer residence in Italy and:

– have not been resident in Italy in the two tax periods prior to the transfer ( with AIRE registration if Italian citizens living in specific countries)

– undertake to reside in Italy for at least two years, and;

– work mainly in Italy.

The rule is, therefore, aimed at encouraging the return of Italian citizens who have been living abroad permanently in recent years., as well as to to encourage foreign citizens to move to Italy for work.

The new law has increased  to 70% the non-taxable income share , that goes up to 90% for those who move residence in the regions of Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia and Sicily.

The benefit will last an initial period of 5 years, that can be extended if:

– the worker has a minor child ;

– the worker buys a residential property in Italy

In these cases, for the additional 5 years, income contributes to forming the taxable amount for 50% of their amount. If the worker has at least three children in the above conditions, the tax rate is set at 10 %

Please contact us for any further information

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