The 2026 impatriates tax regime forms part of Italy’s fiscal policies aimed at attracting highly qualified human capital. The relevant legislation is set out in Legislative Decree 209/2023, subsequently amended by corrective measures, including those introduced by Law 132/2025. The regulatory framework is designed to make transferring tax residence to Italy fiscally advantageous by offering a significant reduction in taxation on employment and self-employment income generated in Italy.

How the incentive works

The benefit consists of taxing only 50% of employment or self-employment income produced in Italy, up to a maximum limit of €600,000 per year. Under specific family-related conditions, the taxable portion may be further reduced, excluding up to 60% of income from taxation. In practical terms, this means that half — or in some cases more than half — of the income does not contribute to the IRPEF taxable base.

The incentive applies for five tax periods: the year in which tax residence is transferred and the following four years. The benefit therefore extends over a significant time frame, enabling stable long-term relocation planning.

Eligibility requirements and conditions

Access to the regime is not automatic and requires compliance with several substantive conditions. First, the individual must transfer their tax residence to Italy and must not have been tax resident in Italy during the three preceding tax periods. The minimum period of residence abroad is therefore set at three years. However, the legislation extends this period if the worker returns to collaborate with the same employer — or with an entity belonging to the same group — for whom they were employed abroad.

In such cases, the minimum foreign residence requirement increases to six years if the worker had not previously been employed in Italy by the same employer or group, and to seven years if, prior to expatriation, they had already worked in Italy for the same employer or corporate group. This provision is intended to prevent abusive use of the regime through merely formal transfers.

In addition to the residence requirement, the worker must commit to remaining tax resident in Italy for at least four years. A return abroad before this deadline results in forfeiture of the benefit and the obligation to repay the taxes saved, plus interest.

Another essential requirement concerns the performance of the work activity, which must be carried out predominantly within Italian territory. The regime is also targeted at individuals possessing high levels of qualification or professional specialization, reinforcing its purpose of attracting high value-added profiles.

Smart working and foreign employers

One of the most significant aspects for 2026 concerns the applicability of the regime to workers operating remotely for a foreign employer. With ruling No. 2 of January 12, 2026, the Italian Revenue Agency clarified that the new regime may also apply to workers who return to Italy and perform their duties in smart working mode for a company with its registered office abroad, provided that the activity is carried out predominantly in Italy and all other statutory requirements are met.

The specific case examined involved a professional who had moved to the United Kingdom in 2020 and returned to Italy in 2025 to work, including remotely, for a company headquartered in Berlin. The tax authorities confirmed that, where the required conditions are satisfied, the benefit applies starting from the 2026 tax period and continues for the following four years.

This interpretation consolidates a position already expressed in the past: the fact that the employer is foreign does not, in itself, preclude access to the regime, provided that the center of the work activity and tax residence are effectively located in Italy.

The return of cross-border workers

Another noteworthy interpretative development came with ruling No. 12/E of January 20, 2026, in which the Italian Revenue Agency recognized the possibility of applying the regime to workers returning to Italy while operating as cross-border commuters. In this case as well, access is subject to full compliance with all statutory requirements, particularly regarding tax residence and the predominance of work activity carried out in Italy.

How to claim the benefit

From an operational standpoint, the incentive may be applied directly by the employer through payroll. If this does not occur, the worker does not lose entitlement to the benefit and may instead claim it in their annual tax return, thereby recovering any excess tax paid.

Final considerations

The 2026 impatriates regime represents a highly attractive tax instrument for highly qualified workers intending to transfer their residence to Italy, including those engaged in remote work or employed by foreign companies. Recent clarifications issued by the Italian Revenue Agency have broadened and clarified the scope of application, encompassing increasingly common employment arrangements in today’s labor market.

Nevertheless, careful preliminary verification of the legal requirements and conditions remains essential, as failure to comply with residence commitments leads to loss of the benefit and recovery of unpaid taxes. In an evolving regulatory environment, proper tax planning remains crucial to fully leverage the opportunities offered by the regime.

Your Way to Italy: our assistance

Our team is available to provide support and assistance regarding italian citizenship and  immigration law! Contact us to schedule your first consultation! #Yourwaytoitaly

The content of this article is intended to provide general information on the topic. For doubts or specific cases, it is advisable to seek specialized legal advice tailored to your particular situation.

Article written by Alessia Ajelli, Managing Associate of LCA Studio Legale, Italian lawyer specialized on Italian immigration and citizenship law, and Paolo Grassi, Trainee of LCA Studio Legale.