Impatriate Regime: New Ruling Clarifies Multiple Employment During Foreign Residency

The Italian Revenue Agency has issued a crucial ruling that brings clarity to a complex scenario affecting many foreign workers planning to move to Italy.

In response n. 263/2025, the tax authority addressed whether professionals who maintained teaching or consulting relationships with Italian institutions while working abroad can still benefit from the impatriate regime for their new employment in Italy. The ruling confirms that having multiple work relationships during foreign residency doesn’t disqualify you from the impatriate regime entirely—but it does affect which income streams can benefit from the tax advantages. This interpretation represents a significant clarification for highly skilled professionals considering relocation to Italy.

The Taxpayer’s Question

The case involved an Italian citizen who presented a particularly nuanced situation to the Revenue Agency. The taxpayer’s question centered on whether continuing a university collaboration while working abroad would prevent access to the impatriate regime for new employment in Italy. Here’s what made this case interesting:

The individual moved abroad in January 2023 to work for a foreign company
During his foreign residency, he continued providing coordinated and continuous collaboration services for an Italian university, working both remotely and occasionally in Italy
He planned to return to Italy in 2026 to work for a completely different company (unrelated to his foreign employer)
He wanted to know if he could apply the impatriate regime to his new Italian employment while continuing the university collaboration

The taxpayer specifically asked: “Can I apply the new favorable regime for impatriate workers to income from employment with a company unconnected to my foreign employer, regardless of the fact that I will continue working for the university upon my return?”

This question highlighted a common scenario for academics, consultants, and other professionals who often maintain multiple work relationships across borders.

Understanding the New Impatriate Regime Rules

The new regime, introduced by Article 5 of Legislative Decree n. 209 of December 27, 2023, offers substantial tax benefits but comes with specific requirements. The key provisions include:

Core Benefits

50% income tax reduction on qualifying employment and professional income
Income cap of €600,000 per year for the tax benefit
Available for up to four years after establishing Italian tax residency

Standard Eligibility Requirements

The basic requirements for accessing the regime include:

Residency commitment: You must commit to residing fiscally in Italy for at least four years
Foreign residency period: You cannot have been an Italian tax resident for the three tax periods preceding your transfer
Work location: The work activity must be performed primarily in Italian territory
Qualifications: You must possess high qualification or specialization requirements

The Complex “Same Employer” Rules

Here’s where things get tricky. The legislation includes special provisions when there’s continuity with previous employment:

If you work for the same employer or group in Italy as you did abroad, the minimum foreign residency requirement increases:

Six tax periods if you never worked for that employer/group in Italy before
Seven tax periods if you previously worked for the same employer/group in Italy before moving abroad

The Revenue Agency’s interpretation is broad: any work relationship with the same entity counts, regardless of the contract type (employee, contractor, consultant, etc.).

The Italian Revenue Agency’s Response

The Revenue Agency’s response in ruling n. 263/2025 provided important clarifications that will benefit many professionals in similar situations.

The Key Finding: Partial Application is Possible

The Agency ruled that the impatriate regime can be applied selectively to different income streams. Specifically:

✅ Income that CAN benefit from the regime:

Employment income from companies where you never worked before
Professional income from new clients unrelated to your foreign work

❌ Income that CANNOT benefit from the regime:

Income from the same employer/group you worked for abroad
Income from entities where you don’t meet the extended residency requirements (6 or 7 years abroad)

Multiple Employment Relationships Don’t Disqualify You

Crucially, the Agency confirmed that continuing other work relationships upon return to Italy doesn’t prevent you from applying the regime to qualifying income. In the specific case, the taxpayer can:

Apply the impatriate regime to income from the new Italian employer (since he never worked for them before and meets the 3-year foreign residency requirement)
Continue his university collaboration, but without tax benefits on that income (since he worked for the university while abroad and doesn’t meet the 7-year requirement)

Practical Implications for Foreign Workers

This ruling has several important implications for professionals considering a move to Italy:

Strategic Planning Opportunities

You can structure your return to maximize tax benefits on new income while maintaining existing professional relationships
The regime can be applied to some income streams even if others don’t qualify
There’s no requirement to cease all previous work relationships to benefit from the regime

Documentation Requirements

Given the complexity of these rules, maintaining clear documentation becomes crucial:

Contract dates and durations for all work relationships
Residency status records for each tax period
Clear distinction between different employers and income sources

Timing Considerations

The ruling reinforces that timing is everything with the impatriate regime:

The foreign residency period calculation is strict
Different requirements apply depending on your work history
Planning your return date can significantly impact your tax position

What This Means for Your Italian Tax Planning

If you’re planning to move to Italy and have multiple work relationships, this ruling provides a clearer roadmap:

Step 1: Inventory Your Work Relationships

List all current and past employers/clients
Identify any connections between entities (group relationships)
Document your work history in Italy before any foreign moves

Step 2: Calculate Required Foreign Residency Periods

Standard requirement: 3 years for new employers
Extended requirement: 6-7 years for same employers/groups

Step 3: Plan Your Income Structure

Maximize income from employers that qualify for the 3-year rule
Consider whether to maintain relationships that require 6-7 years abroad
Factor in the €600,000 annual cap when structuring compensation

Step 4: Prepare Documentation

Maintain clear records of all work relationships and their timing
Document your tax residency status for each relevant year
Prepare contracts and agreements that clearly distinguish between different income sources

Looking Ahead: Planning Your Move

This ruling demonstrates that Italy’s tax system is becoming more sophisticated in handling complex international work arrangements. The ability to apply the impatriate regime selectively to different income streams makes the regime more accessible to modern professionals who often maintain multiple work relationships across borders.

For many professionals, this means you don’t have to choose between maintaining valuable professional relationships and accessing Italy’s attractive tax benefits—you can often do both, with careful planning.

However, the complexity of these rules also underscores the importance of professional advice. While this ruling provides helpful guidance, each situation involves specific facts that can significantly affect the outcome. The Revenue Agency specifically noted that the actual verification of requirements and residency status involves factual assessments that go beyond the scope of their interpretive ruling.

If you’re considering a move to Italy and have multiple work relationships, the key takeaway is clear: the impatriate regime remains available and attractive, but successful navigation requires careful analysis of your specific situation and strategic planning of your return.