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Throughout the years, Italy has implemented several favourable tax regimes aimed at attracting foreign individuals or at attracting back individuals that, even though resident abroad, were previously Italian residents or citizens.

In particular, the regimes currently in place are:

• the “resident not domiciled” (or “res non-dom”) regime, which provides for the payment of an annual substitute tax on income produced abroad by individuals who transfer their tax residence to Italy;
• the in-bound workers (“impatriates”) regime, which provides for an exemption of 70% (or 90% under certain conditions) on income derived from employment, self-employment and entrepreneurial activities carried out in Italy by taxpayers who transfer their tax residence to Italy and who undertake to reside in Italy for at least two years;
• the regime for foreign pensioners, which provides for a 7% substitute tax to be paid on income generated abroad for taxpayers who transfer their tax residence to certain municipalities in southern Italy;
• the regime which applies with respect to taxpayers with specific academic qualifications (professors or researchers) and who carry out some specific activities in Italy.