Retroactive effects of Italian “growth decree”

The Italian Government, with the approval of Legislative Decree no. 34 of 30 April 2019, which came into force on 1 May 2019, has made important changes to the two preferential regimes reserved for employees and non-employees who decide to transfer their tax residence to Italian territory.

The so-called impatriate regime has certainly made the “Beautiful Country” more attractive to those who would like to move the civil and tax residence. This regime, which has been in force since 2015, has undergone significant changes during 2019 through the so-called Growth Decree, aimed at making it even more attractive. In fact, while the discipline in force until 2019 provided for the 50% tax relief on total income for someone who moved his tax residence in the same year, with the Growth Decree, an extension of the benefit through income tax relief to the extent of 70% for those transferring their residence in 2020.

However, the Fiscal Decree linked to the Budget Law 2020, for obvious reasons of fairness, has anticipated the applicability of the most advantageous predictions even for those who have transferred to Italy as early as 30 April 2019.

The reduction of the taxable amount may also be extended to 90% for the first 5 years for taxpayers who have moved to a region of the South and is further an extension of the benefit for a further five-year period (again with tax relief of the taxable amount of the 90%) for those who have at least 3 minor or dependent children.

Willing to know more? Contact the author, Mr. Filippo Tornambè, Managing Director Fidinam Italia, or visit Fidinam Italia website

Stay in touch with us

Subscribe to our newsletter and receive our news delivered straight to your mailbox, just a click away, Sign Up Now
Email address