In a bid to lure residents, Italy has introduced new tax savings measures for an employee, a self-employed professional, or an entrepreneur (regardless of qualifications; no degrees are required).
The rules were introduced by a decree dated April 30, 2019 and apply from 2020 to any employee, self-employed professional or entrepreneur who has not been an Italian tax resident in Italy for the last two years, but who becomes Italian tax resident (regardless of his/her foreign State residence) and pledges to keep this status for the following two years. Also, the person must work mostly within Italy for either an Italian or a non-Italian enterprise.
Any who meets these criteria are subject to Italian individual income tax only on 30% of their employment/self-employment/business income.
As further incentive, anyone who takes up residence in the southern part of Italy will see their income tax reduced to only 10%.
This follows the government’s two previous tax incentives, from 2017 (for HNWIs) and 2019 (for pensioners) relocating for tax purposes to Italy.