Taxation and incentives

Navigating the Italian tax system

Moving to Italy to live and work also means becoming familiar with the tax rules and the benefits available to those who choose to settle here.

In Italy, income tax is paid by:

• Tax residents: individuals who have their official residence in Italy, who spend more than 183 days per year in the country (even if not consecutive), or whose main center of personal or economic interests is in Italy. Tax residents are required to pay taxes in Italy on income earned both in Italy and abroad.
• Non-residents: individuals who pay taxes only on income generated in Italy (for example, from employment carried out in the country or from property located on Italian territory).

The main personal income tax is IRPEF (Imposta sul Reddito delle Persone Fisiche), calculated on the basis of income brackets with progressive rates.

To attract and retain talent, Italy offers tax incentives to workers and researchers relocating from abroad.

These measures are designed to encourage the return of qualified professionals and support their integration into Italy’s economic and scientific landscape.

The main schemes currently in place apply to:

• Repatriated workers – individuals returning to Italy for employment or self-employment purposes;
• Teachers and researchers – highly qualified professionals in academic teaching and research returning to Italy;
• High-net-worth individuals – persons transferring their tax residence to Italy.

Further information can be found on the it-ER website (International Talents Emilia-Romagna).

Opening a bank account in Italy is useful for receiving your salary, paying rent and bills, and managing everyday expenses.

You can choose between:

A traditional bank account, opened at a physical branch and also accessible online.

A fully online account, managed exclusively through a mobile app or internet banking.

To open a bank account, you will need:

• a valid identity document (and a residence permit if you are a non-EU citizen),
• your Italian tax code (codice fiscale).

Within the European Union, if you open a bank account, transfer money, apply for a loan, or purchase insurance products, you are protected by specific regulations that safeguard your fundamental rights.