The Italian Tax Authority has released a significant clarification on the application of the new Impatriate Regime through its recent ruling n. 53/2025. This clarification addresses key aspects of the required minimum period of foreign residency and the availability of enhanced tax benefits for parents with minor children.
Understanding the Latest Interpretation on the Impatriate Regime 2025
In Ruling n. 53/2025, the Italian Revenue Agency (Agenzia delle Entrate) addresses a case involving an Italian citizen who worked abroad and is planning to return to Italy. The taxpayer specifically asked about:
- The minimum period of foreign residency required when there’s an interruption of employment relationship before returning to Italy
- Whether both parents can benefit from the additional tax reduction when they have a minor child
This ruling provides valuable insights for foreigners planning to relocate to Italy under the tax benefits of the Impatriate Regime introduced by Article 5 of Legislative Decree n. 209/2023.
Key Points of the Impatriate Regime
For those unfamiliar with the regime, it offers substantial tax benefits for qualified workers who transfer their tax residency to Italy starting from the 2024 tax year:
- 50% reduction on taxable income for qualifying workers
- Annual income limit of €600,000 for tax benefits
- Workers must possess high qualification or specialization requirements
- Activity must be performed in Italy for the majority of the tax period
The Case Examined in the Ruling
The case concerned an Italian citizen who:
- Worked in Italy until April 2019 as a Managing Director
- Moved abroad in May 2019 and registered with AIRE (Registry of Italians Residing Abroad) on June 18, 2019
- Worked for the foreign branch of the same Italian company until June 30, 2024
- After that date, interrupted his employment relationship and began working as a self-employed consultant in the foreign country
- Plans to return to Italy in January 2025 to work for the same company where he had previously worked abroad
The Taxpayer’s Questions
The taxpayer specifically asked:
- What is the minimum period of foreign residency required when a worker has interrupted their employment relationship with the foreign employer, meaning there’s no continuity between the work performed abroad and the work to be performed in Italy?
- Can both parents apply for the enhanced 60% tax exemption (reduction to 40% of taxable base) provided for workers with minor children?
The Tax Authority’s Answers
On Minimum Foreign Residency Period
The Revenue Agency clarified that in this case, the required minimum period of foreign residency is seven tax periods. This is because:
- The taxpayer will work for the same company (or group) in Italy as the one he worked for abroad
- The fact that he temporarily interrupted his employment relationship to work as a self-employed consultant doesn’t eliminate the connection between the former employer and future employer
- Since he had previously worked in Italy for the same company before moving abroad, the seven-year rule applies (rather than the six-year rule that would apply if he had never worked for this company in Italy)
On Tax Benefits for Parents
Regarding the enhanced tax benefit for parents, the Tax Authority confirmed that:
- Both parents can simultaneously benefit from the increased tax reduction (60% exemption instead of 50%)
- The only condition is that the minor child must be resident in Italy during the period the tax benefit is claimed
- No specific limitation exists that would restrict this benefit to only one parent
Practical Implications for Those Relocating to Italy
This ruling has significant implications for professionals planning to move to Italy:
- Employment relationship continuity: The interruption of an employment relationship does not reset the minimum foreign residency requirement when returning to work for the same company.
- Type of contract doesn’t matter: The tax authority confirmed that the type of contractual relationship is irrelevant. Whether employed or self-employed, what matters is working with the same company/group.
- Family benefits: Both parents can claim the enhanced tax reduction for having minor children, potentially making Italy more attractive for families relocating together.
Summary of Requirements for the Impatriate Regime
- Transferring tax residency to Italy
- Not having been tax resident in Italy in the three tax periods prior to transfer (or longer in specific cases)
- Performing work activity mainly in Italy
- Possessing high qualification or specialization requirements
- Committing to maintain Italian residency for the applicable period
🔎 For a more detailed analysis of this case and the complete text of the ruling, you can consult the official document n. 53/2025 from the Italian Revenue Agency.
This ruling represents a significant clarification on how the tax authority interprets some of the more ambiguous aspects of the Impatriate Regime, providing valuable guidance for those considering a move to Italy for work purposes. For comprehensive support in navigating Italy’s complex tax landscape, consider consulting with specialized Italian tax advisors who can help optimize your fiscal strategy.
