The Growth Decree (Legislative Decree no. 34/2019) provides for important measures to strengthen the tax regime introduced by Article 16 of Legislative Decree no. 147/2015, applicable to impatriate workers who transfer their residence to Italy from 1 January 2020.
The percentage of exemption for the income produced in Italy is raised to 70%. In addition, this percentage is raised to 90% for those who transfer residence in the regions of Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia and Sicily.
The duration of the benefit is set at 5 years. Moreover, some hypotheses of extension have been provided, applying the facility for a further 5 years.
The benefit is applicable to taxpayers who transfer their residence to Italy pursuant to Article 2 of the TUIR and who:
- have not been resident in Italy in the two tax periods preceding the transfer and which undertake to reside in Italy for at least two years, and
- work mainly in Italy.
The tax benefit is also extended to persons who start a business activity in Italy as from 1 January 2020.