2024 TAX LAW FOR IMPATRIATES: NEW RULES

Still a great opportunity for those who want to buy home in Italy in 2024
The Decree no. 209/2023 recently adopted by the Italian Parliament has introducedsignificant updates to the “impatriated tax regime”, which deeply modifies the criteria for accessing tax breaks for those who want to return/come to Italy after a work experience abroad.

The new fiscal regime provides for a reduction of the Income tax equal to 50 % (previously equal to 70 %) on an amount of income not exceeding 600,000 euros per year, eliminating the greater 90 % deduction provided for cases of transfer of residence to the regions of southern Italy.

Compared to the previous legislation, the permanence abroad of at least 6 or 7 years is now required to be able to benefiting of the tax break, depending on the continuity of work with the same employer or group company. The new legislation limits the duration of the tax benefit to 5 years, eliminating the different duration provided for by the previous regime. It applies in favor of the subjects who transfer the tax residence to Italy starting from the tax period 2024.

The new Law provides for a Transitional regime in favor of the individuals who will move their personal/fiscal residency to Italy in the year 2024 and who have purchased, by 31 December 2023 and, in any case, in the 12 months preceding the transfer, aRESIDENTIAL PROPERTY in Italy used as “first home”.

In this case it is granted the possibility to benefit of further 3 tax periods, for a total of 8 years (including the ordinary 5 years duration + 3 years extension).