Tax break to attract human capital

Teachers and researchers resident abroad and highly-skilled re-patriated workers will benefit of a tax break if they return to Italy and transfer their tax residency to Italy.

This is what art 2, law n.232/ 11 December 2016 states in accomplishment of the aims of Italian Budget 2017 that promotes economic, scientific and cultural development.

Who can benefit

Art.2 is dedicated to human capital that is attracted to live and work in Italy without the burden of excessive taxes:

  • Teachers and researchers resident abroad that are returning to Italy, for whom the tax system provides tax breaks on income produced in Italy;
  • “re-patriated” workers: workers who have in the past graduated or worked abroad, as well as students who hold an academic title, managers and highly-skilled workers.


You have to transfer your tax residency to Italy, having also previously held residency abroad for a minimum period before moving.

-Teachers and researchers: four years of tax breaks are provided, beginning from the tax period in which tax residency is confirmed in Italy. Those who apply will have to demonstrate that they possess an academic position at a University or an Institution and that they have been teaching or carrying out research abroad for a minimum period of two consecutive years. They will be exempted from IRPEF and any add-ons for 90% of their total income – whether this comes through self-employment or not – produced in Italy through teaching or research. IRPEF tax will therefore be paid on 10% of the income. Furthermore, this income will be excluded from IRAP tax liability. The “minimum period” is not the same for everyone, but the duration varies depending on the tax break you are after.

-“Re-patriated” workers can be employees or self-employed who move back their tax residency to Italy from abroad. They must have graduated or carried out work abroad, or be a student that holds an academic title abroad, or a manager or a highly qualified, specialised worker. For salaried workers, the tax break is accepted through a request addressed to the employer, while self-employed workers can get it the moment they submit their tax return and can thereby enjoy a “discount” on the retention tax which takes place through their clients.  Preferential taxation for five years, will be applied on 50% of income produced in Italy.


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