As more and more companies embrace remote work, there has been a growing trend toward hiring international employees. This presents an exciting opportunity for businesses looking to expand their operations globally and tap into a wider pool of skilled workers.
If you are ready to take your business global and hire top talent in Italy, it's important to be aware of the "lavoratori impatriati" tax scheme. This program offers tax incentives to qualified individuals to encourage the movement of "human capital" to Italy. In this article, we'll explain everything you need to know about the "lavoratori impatriati" tax scheme, including who is eligible and what the requirements are.
Under the "lavoratori impatriati" tax scheme a significant portion of qualifying income from employment in Italy is exempt from income tax. Specifically, 70% of gross salary or net profit is exempt from income tax, while the remaining 30% is taxable. However, it is important to note that 100% of salary is subject to social security contributions under standard rules.
In some areas of Italy, such as Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, and Sicily, the exempt portion is even higher at 90%. The "lavoratori impatriati" tax scheme applies for 5 consecutive accounting periods unless revoked or the eligibility requirements are no longer met. It may also be extended for an additional 5 years if certain conditions are satisfied.
You must meet specific requirements to take advantage of the "lavoratori impatriati" tax scheme. These include:
If you meet the eligibility requirements and are considering taking advantage of Italy's "lavoratori impatriati" tax scheme, here are the steps you need to take:
There are several benefits to taking advantage of Italy's "lavoratori impatriati" tax scheme, including:
The growing remote work trend is making it easier for businesses to open up in other countries without having to set up multiple legal organizations. Italy's "lavoratori impatriati" tax scheme is an excellent opportunity for businesses looking to expand their operations and hire international employees. By taking advantage of this program, you can attract top talent and save money on taxes. However, navigating the country's tax laws and regulations can take time and effort.
If you're looking to hire remote employees in Italy, Remofirst’s team of expert consultants has extensive knowledge and experience in international employment laws that can help you understand the "lavoratori impatriati" tax scheme and other preferential tax programs in Italy.
As an Employer of Record (EOR), Remofirst handles all the logistical and compliance aspects of hiring international employees in Italy, allowing companies to efficiently expand their workforce to other countries without the added complexity of setting up additional legal structures. This includes international payroll processing, health benefits, and more. By using Remofirst, you can focus on what you do best – running and growing your business – while we handle the rest.
Let Remofirst help you every step of the way as you expand your business globally. Contact us today to learn more about how we can help your business succeed in the global marketplace.