Expats Regime 2026: Requirements, Tax Benefits and Checks to Carry Out Before Returning/Coming to Italy

Overview

The Expats Regime 2026 is one of the most relevant tax incentives for individuals who transfer their tax residence to Italy after a period of work or residence abroad.

The benefit can be significant, but it does not apply automatically.

Requirements, dates, documentation, employment relationships and the practical circumstances of the return must all be carefully assessed.

As from the 2024 tax year, the new regime introduced by Article 5 of Legislative Decree No. 209/2023 applies to workers who transfer their tax residence to Italy from 2024 onwards.

Broadly speaking, the Italian Expats Regime allows only part of the employment or self-employment income produced in Italy to be taxed, within specific limits and provided that the statutory requirements are met.

The key point is this: returning to Italy, registering with the local population register or starting a new job is not enough.

Before applying the Expats Regime for workers returning to Italy, it is advisable to verify whether the individual’s position is consistent with the applicable legislation and whether the available documentation is sufficient to support the correct application of the tax relief in the event of future checks.

Point to verify	Why it matters for the Expats Regime 2026
Previous tax residence	It helps demonstrate the period of effective non-residence in Italy
Return to Italy	It is necessary to identify when the relevant transfer takes place
Work activity in Italy	The work activity must be performed mainly within Italian territory
Documentation	It is essential to support the application of the tax relief
Employer	It may affect the requirements, especially if it is the same employer or a foreign group company
Minor children	They may be relevant for the enhanced benefit, where the relevant conditions are met

What Is the Expats Regime 2026?

The Expats Regime is a preferential tax regime designed to encourage the transfer to Italy of workers who have gained professional experience abroad.

Where the required conditions are met, the measure applies to employment income, income treated as employment income and self-employment income produced in Italy.

For transfers of tax residence made from 2024 onwards, the regime is more selective than in the past.

Among other aspects, the new legislative framework requires the individual to undertake to maintain tax residence in Italy for at least four years and not to have been tax resident in Italy during the tax periods preceding the transfer.

In general terms, the benefit consists of the partial taxation of eligible income. For individuals who meet the requirements, employment or self-employment income produced in Italy contributes to total taxable income only up to 50% of its amount, within an annual limit of EUR 600,000.

Aspect	General rule under the new Expats Regime
Eligible income	Employment, assimilated employment and self-employment income produced in Italy
Ordinary taxable portion	50% of eligible income
Annual limit	EUR 600,000
Effective date of the new regime	Transfers of tax residence from 2024 onwards
Ordinary duration	5 tax periods, provided the requirements are met
Legal reference	Article 5 of Legislative Decree No. 209/2023

Expats Regime 2026: Why It Differs from the Previous Regime

For a correct tax assessment, it is essential to distinguish the former regime from the new Expats Regime applicable to transfers made from 2024 onwards.

In many cases, the previous regime was broader and more favourable.

The new regime requires a more rigorous assessment, particularly in relation to the period of tax non-residence abroad, the obligation to remain in Italy, the requirement that the work activity be carried out mainly within Italian territory, and the requirement of high qualification or specialisation.

This distinction is also crucial from an advisory perspective.

A person who returned to Italy in 2023 may be in a very different position from someone returning in 2026.

For this reason, before applying the benefit, it is necessary to identify precisely the year in which tax residence was transferred and the applicable regime.

Main Requirements of the Expats Regime 2026

The first requirement to verify is the transfer of tax residence to Italy.

It is not sufficient to consider only registration with the local population register.

In practice, substantive elements may also be relevant, such as the place where the individual habitually lives, the centre of personal and professional interests, family connections, the employment contract and the available documentation.

The second element concerns the period of tax non-residence in Italy before the return.

As a general rule, the worker must not have been tax resident in Italy during the three tax periods preceding the transfer.

However, the required period may increase where there are relationships with the same foreign employer or with entities belonging to the same group.

A further requirement is the commitment to maintain tax residence in Italy for at least four years.

This point should not be underestimated.

Failure to comply with this commitment may result in the loss of the benefit and the recovery of taxes not paid, together with the related consequences provided for by law.

Expats Regime 2026 requirements	What should be checked in practice
Transfer of tax residence to Italy	Effective date, population register status, physical presence, personal and professional interests
Previous non-residence	Tax periods spent abroad and supporting evidence
Stay in Italy	Commitment to remain tax resident in Italy for at least 4 years
Work activity mainly performed in Italy	Actual place where the work activity is carried out
High qualification or specialisation	Qualifications, experience, role and professional classification
Consistent documentation	Contracts, certificates, payslips, foreign residence evidence, possible AIRE registration

Tax Residence and the Expats Regime: The Most Sensitive Point

Tax residence under the Expats Regime is one of the most delicate aspects of the entire assessment.

An error on this point may compromise the tax relief, because access to the regime also depends on the correct classification of the tax periods before and after the transfer.

In practice, a taxpayer may assume that they were tax resident abroad simply because they worked outside Italy.

However, this conclusion is not always automatic.

Elements such as registration status, possible AIRE registration, available housing, family connections, economic interests, physical presence and documents issued by the foreign tax authority must be reviewed.

For this reason, where the case presents elements of uncertainty, quick assessments should be avoided.

Element to analyse	Relevance for tax residence under the Expats Regime
AIRE registration	It may be relevant, but it does not always complete the analysis
Foreign tax residence certificate	Useful to strengthen the documentary position
Foreign employment contract	Helps reconstruct the period of work outside Italy
Home and family	May affect the assessment of the centre of interests
Physical presence	Relevant for reconstructing the relevant tax period
Banking and administrative documentation	May help demonstrate effective life abroad

How Long Does the Expats Regime Last?

The Expats Regime 2026 may apply from the year in which tax residence is transferred to Italy and for the following four tax periods.

The duration must, however, be coordinated with the requirement to remain in Italy.

Anyone applying the regime must undertake to maintain tax residence in Italy for at least four years.

This point is important because the relief should not be assessed only at the time of entry into Italy, but also with regard to the following years.

There may also be specific transitional rules or particular situations that affect the duration of the regime, especially for those who transferred residence during certain periods or purchased a main residence in Italy where the relevant conditions are met.

These aspects must be reviewed case by case, without applying automatic assumptions.

Duration and effective date	Practical indication
Ordinary duration	5 tax periods
First eligible year	Year of transfer of tax residence to Italy
Required stay	At least 4 years of tax residence in Italy
Possible extensions	Only where specific conditions are met
Main risk	Loss of the benefit or recovery of taxes if the requirements are not met
Recommended check	Before applying the relief through payroll or in the tax return

How Much Can Be Saved Under the Expats Regime?

The tax advantage of the Expats Regime for workers returning to Italy can be significant, because only part of the eligible income contributes to taxable income. Under the ordinary rule of the new regime, eligible income is taxable at 50%, within the annual limit of EUR 600,000.

Where the taxpayer has at least one minor child, the regime may be even more favourable.

Subject to specific conditions, the taxable portion may be reduced to 40%, with a larger portion of income excluded from taxation.

This point, however, must also be verified on the basis of the taxpayer’s family situation and the applicable requirements.

Generic simulations should be avoided.

The actual tax saving depends on income level, contractual structure, year of return, social security contributions, other income, deductions, dependent family members and the method used to apply the benefit.

A reliable tax simulation requires concrete data.

Scenario	Indicative tax effect
Ordinary Expats Regime	50% of eligible income is taxable
Expats Regime with minor children	Possible taxation of only 40%, where the conditions are met
Income above the threshold	The statutory annual limit must be checked
Employee	Possible application through the employer, if properly managed
Self-employed worker	Particular attention is required in the tax return
Case involving foreign income	Coordinated analysis with Italian reporting obligations is required

Expats Regime and the Same Foreign Employer

One of the most sensitive cases concerns a worker who returns to Italy while continuing to work for the same foreign employer, or for a company belonging to the same group.

In these situations, the assessment of the requirements may be more complex than in the case of a return with a new Italian employer.

The legislation provides specific rules on the minimum period of stay abroad where the worker performs activities in Italy for the same entity for which they worked abroad, or for an entity belonging to the same group.

This means that simply returning to Italy is not enough: the employment relationship before and after the transfer must be reconstructed.

Contracts, assignment letters, leave arrangements, secondments, intra-group relationships and continuity of employment should be carefully reviewed before taking a tax position.

Practical case	Level of attention
New Italian employer	Medium, although checks are still required
Same foreign employer	High
Italian company within the same group	High
Secondment or international assignment	Very high
Unpaid leave while abroad	To be analysed with specific documentation
Return with modified contract	To be verified in substance, not only in form

Expats Regime and Smart Working from Italy

The topic of Expats Regime and smart working from Italy is increasingly frequent.

Many workers return to Italy while continuing to work remotely for a foreign employer.

This situation may be delicate from a tax perspective, because tax residence, place of work, employer, possible social security obligations and contractual arrangements must be coordinated.

In general terms, the fact that the employer is foreign does not automatically exclude access to the regime.

However, it is necessary to verify whether the work activity is carried out mainly in Italy and whether the other requirements laid down by the regime are met.

Recent clarifications issued by the Italian Revenue Agency have also addressed cases involving continuity with a foreign employer and remote work, confirming the need for a precise analysis of the specific facts.

Expats Regime and smart working	Aspects to check
Foreign employer	Does not automatically exclude the regime, but requires analysis
Actual place of work	The prevalence of the work activity in Italy must be verified
Contract	Must be consistent with the actual working arrangements
Payroll and withholding taxes	Practical complexities may arise
Social security	To be assessed separately from income tax
Documentation	Essential to support the tax position

Documents to Prepare Before Assessing the Expats Regime

Expats Regime documentation is a decisive element.

Often, the issue is not only understanding whether the legal provision exists, but demonstrating that the taxpayer actually meets the requirements to apply it.

In the event of a tax check, the position should be supported by consistent documentation.

Documents that are normally useful include foreign and Italian employment contracts, foreign tax residence certificates, AIRE registration where available, foreign payslips, income certificates, documents relating to the transfer to Italy, lease agreements or property purchase documents, communications with the employer and family documentation, where relevant.

For individuals who have maintained connections with foreign countries, additional checks may be required.

Foreign income, foreign bank accounts, investments, real estate outside Italy or financial assets may affect Italian tax reporting obligations, even where the main issue is the Expats Regime.

Expats Regime documents	Practical purpose
Foreign employment contract	Demonstrates the work activity performed outside Italy
Italian employment contract	Useful to analyse the new employment relationship
Foreign tax residence certificate	Strengthens evidence of non-residence in Italy
AIRE registration	Useful, where available, in reconstructing the period abroad
Foreign payslips and certificates	Help document income and work activity
Lease agreement or purchase of a home in Italy	Relevant to the effective transfer to Italy
Family documentation	Useful in cases involving minor children or family abroad
Documents on foreign accounts or investments	Necessary for possible Italian reporting obligations

Frequent Mistakes Under the Expats Regime

A frequent mistake is assuming that the return to Italy is sufficient to access the tax relief automatically.

In reality, the regime requires a comprehensive review of the requirements and documentation.

The mere existence of a new job in Italy is not enough.

A second common mistake is confusing registration residence with tax residence. These concepts are connected, but they do not always coincide.

Where the taxpayer maintained significant ties with Italy during the period abroad, the assessment may become more complex.

A third mistake is requesting the application of the regime directly from the employer without first analysing the case.

Expats Regime mistakes	Possible consequence
Applying the regime without checks	Risk of tax recovery and disputes
Confusing registration residence and tax residence	Incorrect classification of the position
Failing to check the foreign periods	Failure to meet the time requirements
Ignoring relationships with the same employer or group	Incorrect application of the regime
Failing to keep documents	Difficulty in the event of a tax check
Overlooking foreign income or assets	Possible additional tax return errors

Expats Regime and the Italian Tax Return

The Expats Regime and the Italian tax return is a topic that requires careful handling.

In some cases, the relief may be applied through the employer, with effects on payroll.

In other cases, or where errors or specific circumstances arise, the issue may emerge in the annual tax return.

The tax return becomes even more delicate where the taxpayer has foreign income, foreign bank accounts, investments, real estate outside Italy or other elements to be monitored.

In these cases, the Expats Regime must be coordinated with the potentially relevant sections of the Italian tax return, such as Section RW, Section RT, Section RM or Section RL, depending on the nature of the items to be reported.

It is important to remember that taxes already paid abroad do not automatically exclude Italian reporting obligations.

Tax residence, the nature of the income, double tax treaties, available documentation and the relevant tax period must all be checked.

Situation	Tax return check
Only Italian employment income	Check of the application of the relief
Foreign income	Review of taxation and foreign tax credit
Foreign bank accounts	Possible relevance of Section RW
Foreign investments	Review of tax monitoring and financial income
Foreign real estate	Possible IVIE and reporting obligations
Capital gains or miscellaneous income	Possible relevance of Sections RT, RM or RL

How Studio Paci Assists with the Assessment of the Expats Regime

Studio Paci, Chartered Accountants and Auditors in Milan, assists workers, professionals and taxpayers who intend to return to Italy or who have already transferred their tax residence, assessing the possible application of the Expats Regime 2026 on the basis of the available documentation and the specific facts of the case.

The activity does not consist of a standard answer, but of an analysis of the main relevant elements: period of residence abroad, transfer to Italy, type of employment relationship, employer, possible group affiliation, presence of minor children, available documents and possible related tax reporting obligations.

This approach is particularly useful where the taxpayer is looking for an accountant specialised in the Expats Regime or professional advice on a return to Italy involving non-trivial tax issues.

The objective is to reduce uncertainty, identify critical points and correctly structure the position before applying the tax relief.