Italy has increased the level of tax breaks offered to
workers returning from abroad or moving to Italy.
In the Tax decree of 25 December 2019 linked to the Budget Law
for 2020, which has now been converted into law, tax benefits for
workers returning from abroad (known as the ‘brain
return’ benefits) have been brought forward.
These benefits were recently extended by the ‘Crescita
decree’ (D.L. n. 34/2019); the percentage of tax-exempt
income rises from 50 to 70% for individuals who move back to Italy
from 1 January 2020. In addition, the duration of this benefit can
be up to ten years instead of five in cases where workers have
children under 18 years old or if they buy a property in Italy,
especially in the regions of Southern Italy.
