Return of the brains

Tax incentives to attract human capital

On 28 June 2019, the Italian government converted article 5 of law decree n. 34/2019 (the "new growth decree") into law, in force on 30 June.

The new decree on growth brings important changes to the special tax regime to attract human capital to Italy.

There are new tax incentives for entrepreneurs, employees, self-employed workers and other workers in general, entering Italy, who transfer their tax residences to Italy starting in 2020.

What are the incentives?

A 50% tax exemption for employees with at least one minor or dependent child, even in prenuptial foster care.
A 90% tax exemption (10% tax base) for employees with at least three minors or dependent children, even in prenuptial foster care.
if you move your residence to one of the following regions (Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia and Sicily) the discount reaches 90%.
for professional athletes, there is a 50% discount on income and the payment of a contribution equal to 0.5% of the tax base, to support the confederation of the professional athlete.
This benefit for sportsmen is added to the tax incentives for people of high net worth (HNWI) who transfer their tax residence to Italy.

In fact, for these subjects, a tax of 100,000 euros is applied on an annual basis, on product income abroad.

Duration

The duration of the tax breaks is five years.

However, in the case of particular conditions, the tax breaks are extended for a further five years in the presence of these requirements:

employees who purchase a residential property unit in Italy after moving to Italy;
who become owners of at least one residential unit in Italy within the 12 months prior to their transfer.
This is an interesting initiative that is giving good results also in the Lake Maggiore area, in particular in Stresa.

In fact, we are receiving numerous requests from Europe but also from the United States, from people looking for their home or villa for sale.

Of course, the apartments for sale also have a good interest, especially those with a terrace and a view of Lake Maggiore and the Borromean Islands.

Our real estate agency is able to support these customers with a taylor made service.