How to recover up to 70% of the taxes you paid if you are a foreigner – Regime degli Impatriati
Did you know that if you are a foreigner, move to Italy and start paying taxes here, you can apply for a tax reduction of up to 70% under the Regime degli Impatriati?
👉 Example: If you earned €30,000 last year and this year you file your tax declaration applying for the Regime degli Impatriati, the Agenzia delle Entrate could refund you the taxes you overpaid.
Why? Because instead of being taxed on the full €30,000, you would only be taxed on €9,000. The remaining €21,000 would be exempt from tax.
If we apply an average income tax burden of about 30%, the potential refund would be up to €6,300.
This benefit continues for 5 fiscal years (with possible extensions in specific cases).
Who can access it?
• Foreigners who move to Italy and start working here.
• Italians returning after living abroad.
Main benefits
• 70% exemption on employment income (for relocations before 2024 in northern/central Italy).
• 50% or 60% exemption (for relocations starting from 2024, depending on whether you have dependent children).
• The benefit lasts 5 fiscal years.
• If you purchase a property in Italy as your main residence, the regime can be extended for another 5 years, with reduced exemption percentages (50% or 90% if you have dependent children).
Specific requirements
1 Transfer tax residence to Italy: you must register in the anagrafe (civil registry).
2 Not have been a tax resident in Italy in previous years (2 or 3 depending on the relocation date).
3 Employment or self-employment in Italy: your work must be carried out mainly in Italy.
4 Commitment to remain a tax resident: you must keep your tax residence in Italy for the minimum required period (2 or 4 years depending on the relocation date).
◦ If you leave Italy and transfer your tax residence abroad before that period ends, the Italian state may reclaim the tax benefits already received.
How to apply
• Method 1: Through your employer → you submit a self-certification and the company applies the reduction directly to your payslip.
• Method 2: Through your annual tax return (model 730 or Redditi PF) → with the help of a tax advisor (commercialista) or some CAFs. It is essential to make sure the person handling your return knows how to apply the Regime degli Impatriati, as not everyone is familiar with this procedur, so ask them first.
Costs
• If you do it through your employer: there should be no cost, normally it is handled by HR. However, the chances that they know how to do it are low since it is not a common process.
• If you do it through the tax declaration (730) with a commercialista or a CAF: a reasonable fee is usually between €60 and €100.
What if I already submitted my 730 without applying the Regime degli Impatriati?
• If you are still within the deadline (until 30 September): you can cancel and re-submit your 730, either online through the pre-filled tax return (730 precompilato) or via a CAF/tax advisor. The Agenzia delle Entrate allows one cancellation and replacement within the deadline.
• If the deadline has passed: you can no longer amend the 730. Instead, you must file a Redditi PF integrative return (by 30 November of the same year) including the Regime degli Impatriati option. This return substitutes your 730 for the relevant income and recalculates your tax liability.
The Regime degli Impatriati is a valuable opportunity for foreigners starting to work in Italy. It allows you to recover taxes already paid and reduce your future tax burden for several years, provided you meet the requirements and maintain your residence in the country for the minimum required period.
⚠️ Disclaimer: The information in this article was not written by a professional and has no legal validity. Percentages, benefits, and outcomes may vary depending on each individual case. It is essential to seek advice from a qualified tax advisor or professional to apply for the Regime degli Impatriati correctly and avoid mistakes that could lead to penalties or repayment of benefits.