After several years of expat life, are you thinking of moving back to Italy? If so, now might be the right time to do so, thanks to new incentives that are to be brought in by decree No. 34 of 2019. The new regulation will take effect from 2020, and it will increase the tax benefits for people that reside abroad and return to Italy.

The amendments are brought about to update provisions in the following previous regulation:

·         The repatriation of highly skilled workers (managers or workers with specializations), as specified in article 16, paragraph 1, Decree 147/2015. Paragraph 2 of article 16 (repatriation of degrees holders) has not been modified;

·         The repatriation in Italy of professors/researchers, as prescribed by article 44 of Decree 78/2010 (Law 122/2010).

Prior to the amendments, only high skilled workers or managers could benefit from repatriation incentives, but from 2020, all workers can enjoy the benefits, which are described below:

·         Taxable income will be 30% of the total amount (A reduction from the previous rate of 50%);

·         In terms of time frames, there are no modifications, and the incentives can be granted from the first fiscal year in which fiscal residence in Italy is acquired, plus the following 4 fiscal years;

·         These new incentives will apply to all workers that have not resided in Italy for two years, and prescribe an obligation to remain in Italy for at least two years;

·         The work must be performed primarily on the Italian territory, but it is not mandatory that it is performed for a resident company or one of its subsidiaries: this entails that the company may also be foreign owned;

·         For graduates, the field is regulated by paragraph 2, which has not been amended. To collect the incentives, it is mandatory to hold a degree, have worked abroad continuously for two years, or have studied for 2 years and obtained academic recognition, and of course move residency to Italy, as well as staying there for 2 years.

For professors and researchers, there is a specific regulation, and after the recent amendments, these categories can enjoy the following incentives for repatriation:

·         Taxable income of 10% (no modifications with previous regulation);

·         In terms of time frames, the incentives can be granted from the first fiscal year in which the fiscal residence in Italy is acquired, plus the following 5 fiscal years.

There are also other incentives that repatriates may obtain, based on specific personal conditions, or the geographical region to which the person repatriates to within Italy.