March 17, 2023 – The Italian Revenue Agency clarifies how to extend the tax benefit for inbound workers who purchase a home in Italy.
Below is the response published on FiscoOggi, the online magazine of the Revenue Agency.
THE QUESTION – In order to extend by an additional five years the benefit provided under the special tax regime for inbound workers who purchase a home, is it necessary that the property be their primary residence? (See the response by Paolo Calderone in FiscoOggi.)
Provided all subjective and objective requirements are met to benefit from the special inbound workers regime, paragraph 3-bis of Article 16 of Legislative Decree No. 147/2015 (introduced by Article 5, paragraph 1, letter c, of Decree-Law No. 34/2019) establishes that, to qualify for the five-year extension of the favorable tax period, one must:
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have at least one minor or dependent child, including in pre-adoptive foster care;
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become the owner of at least one residential property in Italy (either after moving to Italy or within the twelve months preceding the move).
Regarding the latter requirement, the law does not state that the property must serve as the applicant’s main residence. Nor does the ownership of another residential property in Italy at the time of the new purchase prevent access to the extension of the benefit.
Finally, the Revenue Agency provided further clarification on the subject in Circular No. 33/2020, which offers detailed guidance. Among other points, the document specifies that:
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the purchase must be completed within the first five tax periods during which the regime is applied, and ownership must be maintained for the entire period of benefit (for example, a taxpayer who returned to Italy in 2020 may request the extension if the property is purchased by December 31, 2024);
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the extension does not apply if only the bare ownership or usufruct right is acquired, or if only a preliminary purchase agreement is signed during the five-year period (for instance, a taxpayer who moves to Italy in 2020 and signs a preliminary purchase contract in 2024 cannot obtain the benefit if the final deed is signed in 2025).