Tax regime for expatriates: Foreign workers who move to Italy can benefit from an exemption of up to 70% of their income for the first five years of residence. This percentage can increase to 90% if you move to a region in southern Italy such as Sicily or Calabria.
Incentives for entrepreneurs: startups and innovative companies can benefit from partial exemptions from the Regional Tax on Productive Activities (IRAP) and from social contributions during the first years of activity.
Real estate investment deductions: If you invest in canada phone number library residential rental real estate under certain programs such as the “Italian Pinel Plan”, you can access significant deductions on your tax return.
Special Economic Zones (ZES): companies operating in less developed regions, such as southern Italy, can benefit from a reduction in corporate income tax (IRES) and exemptions from some local taxes.
R&D Tax Credits: Companies investing in research and development have access to tax credits that can cover up to 50% of the expenses related to these activities.
If you retire in Italy and decide to live in small towns in the south, you can enjoy a reduced tax rate of 7% on your income for the first ten years.
As you can see, even though taxes in Italy can be quite high, its tax system also offers tax incentives for expatriates and companies that can ease the burden considerably.