Remote workers: changes to the “impatriate” regime and clarifications on smart working and foreign employers

With the most recent interpretative interventions by the Tax Administration, particularly following Ruling No. 82/2026 of the Italian Revenue Agency, further clarifications have been provided regarding the new tax regime for workers who transfer their residence to Italy. This framework is based on Article 5 of Legislative Decree No. 209 of December 27, 2023, and applies to individuals who move to Italy starting from the 2024 tax year.

The incentive consists of a significant reduction of the taxable base related to employment income, equivalent income, and self-employment income produced in Italy. In general terms, such income contributes to the overall taxable income at a rate of 50%, which may be further reduced to 40% under specific conditions related to the taxpayer’s family situation.

This benefit is particularly attractive not only for Italian citizens returning to Italy after a period of working abroad, but also for foreign nationals intending to relocate to Italy—for example, non-EU citizens applying for a visa and residence permit, such as digital nomads and remote workers.

The case under clarification

The Italian Revenue Agency’s intervention examines the situation of an Italian taxpayer who has long been resident abroad and registered with AIRE, and who intends to transfer his tax residence to Italy in 2026. The individual is employed under an employment contract with a foreign employer, a relationship he intends to maintain even after returning, carrying out his work entirely in remote (smart working) mode.

From a family perspective, the taxpayer is married and has three minor children, who are already tax residents in Italy following their mother’s relocation in the previous year.

In this context, clarifications were requested both on access to the preferential regime and on the correct determination of the taxable portion of income.

Compatibility between smart working and a foreign employer

One of the key aspects concerns the possibility of benefiting from the regime while maintaining an employment relationship with a foreign employer. The Agency confirms an increasingly consolidated interpretation: the continuity of an employment relationship with a non-resident entity does not preclude access to the incentive.

Therefore, it is permitted for the worker, once tax residence has been transferred to Italy, to continue working for the same foreign employer, even entirely in remote mode. The determining factor is not the employer’s location, but rather the actual place where the work activity is performed, which must be predominantly in Italy.

Duration of the benefit and eligibility conditions

The preferential regime has a total duration of five years: it applies starting from the tax year in which the transfer of tax residence occurs and for the following four years. However, its application is subject to maintaining residence in Italy for at least four years; otherwise, the benefit is forfeited, with an obligation to repay the unpaid taxes plus interest.

Additional requirements set by the legislation also remain in force, including:

• non-residence for tax purposes in Italy in prior periods, according to the required timeframes;

• possession of adequate professional qualifications or specialization;

• performance of work activities predominantly within Italian territory.

Final considerations

The clarifications provided by the Italian Revenue Agency reinforce a favorable interpretation of the regime, confirming its accessibility even in increasingly widespread working arrangements such as international remote work. In particular, it is reiterated that the employer’s location does not constitute an obstacle, provided that the work activity is mainly carried out in Italy.

These indications help make the regulatory framework more certain and predictable, offering greater confidence to workers considering returning to Italy and wishing to benefit from the available tax incentives.

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.