The country’s government introduced a new draft law in October that could change the current special tax regime for recently moved people – the so-called Lavoratori Impatriati. Now, in accordance with this regime, both Italians who returned to the country and foreigners who moved here for permanent residence can pay taxes for five years (or ten if they have children) only on part of their income (from 10% to 30% depending on region) if they have previously spent two years outside Italy.
Under the new proposal, taxes would be levied on 50% of income in any region of the country. And the preferential regime will apply to those who spent three years outside Italy, and the period during which one cannot leave Italy, so that taxes are not recalculated at the standard rate, has been increased from two years to five. Having children will no longer help extend the grace period – it will be no more than five years in any case. In addition, if you have an income of more than €600,000, the preferential treatment will not apply.
The bill is actively criticized within the country, mainly because the preferential treatment was originally aimed at attracting qualified Italians who left to Italy, and the new rules may make returning to their homeland less attractive for them.