Italy's impatriati regime in 2026: the 50% tax exemption for new residents
Italy's impatriati regime lets people who move their tax residence to Italy exempt half their qualifying income from income tax (IRPEF). Since the 2024 reform, that means a 50% exemption — rising to 60% if you relocate with a minor child — on employment and self-employment income up to €600,000 a year, for five tax years. To qualify you must not have been an Italian tax resident in the previous three years, must commit to staying tax-resident for at least four years, and must hold a qualifying high-skill role. Social-security contributions are still due on your full salary; the break is on income tax only. The calculator below shows your Italian take-home, and this guide explains who qualifies after the reform.
By the Libravo editorial team · Updated 14 June 2026
What the impatriati regime is — after the 2024 reform
The impatriati ('inbound workers') regime is designed to attract skilled people to move their tax residence to Italy. A 2024 reform (Legislative Decree 209/2023) replaced the old, more generous 70–90% exemption with a tighter version: 50% of qualifying income is exempt from IRPEF, so you are taxed on only half your eligible income. People who became Italian tax resident before the end of 2023 stay on the old rules; everyone arriving from 2024 onward is on the new framework, which continues unchanged into 2026.
The 50% exemption — and 60% with a child
Under the current rules, half of your qualifying employment or self-employment income is exempt from income tax, up to a cap of €600,000 a year. The exemption rises to 60% — so only 40% is taxable — if you relocate with a minor child, or have or adopt one during the benefit period. On an €80,000 salary, only €40,000 is taxable, which typically saves in the region of €11,000–€15,000 a year. Earnings above the €600,000 cap are taxed normally.
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Estimate for the 2026 tax year. Assumes a single employee, no dependants, standard situation. · Source: HMRC
This is a simplified estimate for general guidance, not tax advice. Real take-home pay varies with region, tax class, dependants, benefits and deductions. Check the official source for your exact figure.
Income tax only — social security still applies
The exemption applies to IRPEF and the regional and municipal surtaxes — not to social-security contributions. INPS contributions are still calculated on your full gross salary. It also covers only employment and qualifying self-employment income: rental income, capital gains and crypto gains are taxed under their own rules, not the impatriati exemption. So the benefit is large but specific to your earned income.
Who qualifies: residency history and skills
Three conditions stand out. You must not have been an Italian tax resident in the three tax years before your move — and that look-back rises to six years if you return to work for the same employer or group through a foreign employer, or seven years if for an Italian employer. You must commit to remaining an Italian tax resident for at least four years; leave earlier and the benefit is clawed back with interest. And you must hold a highly qualified or specialised role, typically evidenced by a university degree or at least 24 months of qualifying experience. You must genuinely transfer your tax and civil residence to Italy.
How long it lasts
The benefit runs for five tax years: the year you transfer your residence plus the next four. The old route to a ten-year extension — for buying a home or having children — was phased out for new arrivals after 2023, with only very narrow transitional exceptions. After the five years you move onto ordinary Italian taxation. Because you also commit to at least four years of residency, the regime is built around a genuine medium-term move rather than a short stay.
How to claim it
For employees, you activate the regime with a written self-declaration to your employer (the dichiarazione regime impatriati) confirming you meet the conditions; your employer then applies the reduced taxable base in payroll. You also reflect it in your annual Italian tax return. The self-employed claim it directly in their return. Responsibility for meeting the conditions sits with you, not the employer, and the four-year residency commitment carries a clawback, so most people confirm their eligibility with an Italian accountant before relying on it.
Frequently asked questions
Is the impatriati regime still available in 2026?
Yes, in its post-reform form. Since 2024, qualifying new residents get a 50% income-tax exemption (60% with a minor child) on income up to €600,000 for five years. The previous 70–90% exemption is no longer available to new arrivals, and the 2024 rules continue unchanged into 2026.
How much do you save under the impatriati regime?
Half your qualifying income is exempt from IRPEF (60% if you relocate with a minor child), up to €600,000. On an €80,000 salary only €40,000 is taxable, saving roughly €11,000–€15,000 a year. Social-security contributions still apply to the full salary. The calculator above estimates your take-home.
Who qualifies for the impatriati regime?
People who move their tax residence to Italy, were not Italian tax residents in the previous three years, commit to staying tax-resident for at least four years, and hold a highly qualified or specialised role (typically a degree or 24 months of qualifying experience). It is open to all nationalities, including returning Italians who meet the conditions.
How long does the impatriati regime last?
Five tax years — the year you move your residence plus the next four. General extensions are no longer available for arrivals from 2024 onward, so after five years you move onto ordinary Italian tax.
Does the impatriati exemption cover social security?
No. The 50% or 60% exemption applies to income tax (IRPEF and the regional and municipal surtaxes) only. INPS social-security contributions are still calculated on your full gross salary.
What happens if you leave Italy early?
You must remain an Italian tax resident for at least four years. If you leave before that, the benefit is forfeited retroactively and the tax saved must be repaid with interest. Losing a job but staying in Italy and finding a new role generally does not break the benefit.
Does the impatriati regime apply to rental income or capital gains?
No. It only covers employment and qualifying self-employment income. Rental income, capital gains and crypto gains are taxed under their own rules, not the impatriati exemption.
Ready to claim?
Use our free step-by-step guide with a claim-letter template, or check your flight first.
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General information based on Regulation (EC) 261/2004 and its UK retained version, not legal advice. Libravo is not affiliated with any airline.