About taxes in Italy

Italy levies national income tax ("IRPEF") on a 3-bracket scale in 2025: 23% up to €28,000, 35% up to €50,000, and 43% above €50,000. On top of IRPEF you pay regional ("addizionale regionale", typically 1.23%–3.33%) and municipal ("addizionale comunale", up to ~0.9%) surcharges, which we approximate at ~2% combined. Employee social contributions (INPS) are around 9.19% of gross salary up to a ceiling of about €119,650/year. Italy's flagship expat incentive is the Impatriate Regime ("Regime Impatriati"): for qualifying workers moving their tax residence to Italy from 2024 onward, 50% of employment income up to €600,000 is exempt from IRPEF (60% if you have a minor child or buy a home in Italy within 12 months). Eligibility now requires a minimum 3-year prior residence abroad, a 4-year commitment to remain in Italy, high-qualification or high-specialisation roles, and the relief lasts 5 years (extendable in some cases). The regime is much more restrictive than the pre-2024 version. Workers also receive a tax credit on employment income that tapers off as income rises, plus the "tredicesima" (13th month salary) paid in December.