If you need assistance, please call 914-290-5258

Ex-pats working in Italy can now save up to 90% on taxable income.

Thursday, September 19, 2019   /   by Vanessa Saunders

Ex-pats working in Italy can now save up to 90% on taxable income.

2019-09-19.Italy panorama.JPG
What better time to pack up and head to sunny Italy! A bill that included very generous tax incentives for people interested in relocating to Italy has been made into law. The ‘Decree of Growth’, also known as the ‘lavoratori impatriati’ regime, is aimed at any type of worker, regardless of their qualification or skill level. It expands on the previous version, which only included managers, executives and entrepreneurs.
Passed under ‘Law 58’, the decree reduces the amount of taxable income to just the first 30% of the worker’s employment income for the first five years. This leaves that 70% that a worker can keep tax free. And that's just for starters.
If an individual chooses to relocate to southern Italy or to the islands of Sicily and Sardinia, the incentives would be even greater. Taxable income for those new residents is just 10% in the first five years – meaning that 90% is untaxed.
Buy a house or have a dependent child and the tax breaks can be extended for a further five years. Income tax will be paid on the first 50%. If there are three or more dependent children, the exemption stays at 90% for the following five years.
The Italian government has been stepping up its effort to incentivise people to move to the country over the last couple of years, by introducing two other tax measures. One allows recent tax residents to pay an annual €100,000 ($112,000) substitute tax on their foreign-sourced income; the other offers a 7% flat-tax rate on the foreign income of retired expats.
Businesses get tax breaks also.
Businesses setting up across Italy starting in 2020 will also be eligible for tax reliefs, according to Alessandro Belluzzo, head of the London office of Italian law firm Belluzzo International Partners, who advised the Italian government on the decree. He said, “To benefit from the ‘impatriate’ regime, it is now sufficient for all categories of individuals who could be considered eligible to have been tax resident in a country other than Italy for the two fiscal years preceding the period of validity of the new regulations.
“It remains a pre-requisite that ‘work is carried out predominantly in the Italian territory’, loosening the prior regulations that stated work must be carried out for a company or associated companies based in Italy.” Starting in 2020, Italians who have been tax residents in countries where Italy has tax treaties in place will also be eligible to apply for the incentives.

Global Property Systems partners with English speaking agents in Italy who can guarantee a seamless transaction and answer a buyer's questions about any available property. Look at our properties for sale in Italy at http://www.globalpropertysystems.com/italy/


  hudson valley real estate, hudson valley home sellers, retirement, vacation property, global investment properties, international properties, land, commercial property, international real estate, italy, new global property system local area specialists, we sell italy

Global Property Systems
Vanessa Saunders MBA MIMC CIPS - NYS RE Principal Broker
56 Lafayette Avenue Suite 320
White Plains, NY 10603
914-290-5258

image001.png The data relating to real estate for sale or lease on this web site comes in part from HGMLS. Real estate listings held by brokerage firms other than are marked with the HGMLS logo or an abbreviated logo and detailed information about them includes the name of the listing broker.

The information appearing herein has not been verified by the Hudson Gateway Multiple Listing Service, Inc. or the Hudson Gateway Association of Realtors, Inc. or by any individual(s) who may be affiliated with said entities, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose.

©2019 Hudson Gateway Multiple Listing Service, Inc. All rights reserved.

The data relating to real estate for sale or lease on this web site comes in part from MHMLS. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the MHMLS logo or an abbreviated logo and detailed information about them includes the name of the listing broker. The information appearing herein has not been verified by the Mid-Hudson Multiple Listing Service, Inc. or by any individual(s) who may be affiliated with said entity, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose. ©2019 Mid-Hudson Multiple Listing Service, Inc. All rights reserved.
The data relating to real estate on this website comes, in part, through the IDX of the Multiple Listing Service of Ulster County, Inc. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the IDX logo and detailed information about them includes the name of the listing broker.