Brain Return: Eligibility Conditions and Procedures

The facilitated scheme is aimed exclusively at employees or self-employed persons who decide to transfer, from 2020, their tax residence in Italy for more than 183 days a year.

To whom it may concern (Subjective conditions)

In order to benefit from this facility, it is necessary that:

  • the workers have not been resident in Italy in the two tax periods preceding the transfer and undertake to reside in Italy for at least two years
  • the work activity is carried out mainly in Italy.

Subsidised incomes

The following is exempted to the extent of 70% of the total amount:

  • income from employment or persons treated as such
  • income from self-employment

The extension of this benefit to workers setting up a business in Italy from 2020 is expressly provided for.

Exercise mode and duration of the option

The benefits apply from the tax period in which the transfer took place in Italy and for the following four periods.

In the presence of special worker conditions (such as, for example, the purchase of a residential property unit in Italy or the presence of up to two children under 18), access to the scheme can be extended for a further five years, with an exemption equal to 50% of their amount.

The percentage of income exemption, in fact, rises to 90% if workers move their residence to one of the regions in southern Italy (Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, Sicily).

Subjective extension of the scheme

From 1 May 2019, Italian citizens who are not members of AIRE (Register of Italians Resident Abroad) and who return to Italy on or after 1 January 2020 may also benefit from the new tax exemptions, provided that in the two years prior to the transfer they had their residence in another State, in accordance with a double taxation agreement on income.

BRAIN RETURN: THE SCHEME FOR RESEARCHERS AND UNIVERSITY TEACHERS

The facilitated scheme is aimed exclusively at university teachers and researchers who decide to transfer, from 2020, their tax residence to Italy.

To whom it may concern (Subjective conditions)

The scheme is open to university teachers and researchers who:

  • move to Italy for more than 183 days a year
  • have carried out research or teaching activities abroad at centres or universities for at least two years in possession of a university degree.

Subsidised incomes

The facility consists in the exemption of 90% of the remuneration received as a result of the activity carried out abroad by teachers and researchers.

Exercise mode and duration of the option

The favourable measures are applied from the year in which researchers or teachers transfer their residence to Italy and for the next five tax years.

The validity of the benefit may be extended to a further seven, ten or twelve years, if the teacher or researcher has one or more children under 18 or has purchased a residential property in Italy.

Subjective extension of the scheme

These benefits are available to Italian teachers and researchers who are not members of AIRE and who return to Italy on or after 1 January 2020, provided that in the two years prior to the transfer they have resided in another State, in accordance with a double taxation agreement on income.

Filippo Tornambe’, Managing Director of Fidinam Italia

 

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