Immigration to Italy: Permits, Visas, and Italian Taxes

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Italy, with its unparalleled cultural heritage, cuisine, and quality of life, is attracting an increasing number of immigrants. The country is actively pursuing programs to attract skilled professionals and "returnees" by offering attractive tax incentives. In the periods 2024 to 2026, new immigration quotas were established, and procedures for those in sought-after professions were simplified.

Italy's Immigration Programs

Italy uses a quota system (decreto flussi) to regulate labor immigration from third-country citizens. Quotas are set annually for various categories, such as seasonal workers, highly skilled professionals, and entrepreneurs. The EU Blue Card is available to highly educated professionals earning at least €36,000 per year. The self-employed worker visa (lavoratore autonomo) allows individuals to start their own businesses.

The Startup Visa Italia program is designed for founders of innovative companies with proven business ideas. A visa for freelancers and digital nomads (visto per lavoro autonomo freelance) was introduced in 2022. Family reunification is possible if sufficient income and housing are available.

Applying for a Residence Permit

Applying for a Residence Permit — the first step towards living in Italy
You must submit an application for a Residence Permit within 8 working days after arriving in Italy. It should be submitted through the local post office. The initial permit is valid for 1–2 years. After 5 years of residence, you are eligible to apply for a long-term EU Resident Card (Carta di soggiorno CE). The paper residence permit will gradually be replaced by an electronic one.

Italy's Tax System
The income tax IRPEF is levied on a progressive scale: 23% for earnings up to €15,000, 25% for amounts between €15,001 and €28,000, 35% for amounts over €28,000. Additional regional and municipal taxes (1.23–3.33% and 0–0.9%, respectively) are applied on top of this. There is also a value-added tax IVA with standard rates of 22%, as well as reduced rates of 10%, 5%, and 4%
Employees pay approximately 9.19% in social contributions, while employers contribute around 29–32%. Self-employed individuals pay contributions to the INPS (gestione separata) at a rate of roughly 26.23%.

Tax Incentives for “Returnees” and Expats

Tax Incentives for Immigrants in Italy — The Impatriati regime is one of the most favorable tax benefits for those moving to Italy.

Italy offers the highly advantageous Impatriati regime (Regime dei lavoratori impatriati): Income earned in Italy is included in the tax base only to the extent of 50% (or 30% for those moving to southern Italy or having children). This regime is valid for 5 years and can be extended. It applies to both returning Italians and foreigners who have not lived in Italy for the past 2 years.

The Non-Dom regime (a one-time fee of €100,000 per year) allows wealthy foreigners to pay a fixed amount of €100,000 annually on all their foreign income.

Cost of Living

Rental costs in Milan: €1,400–2,000 per month; Rome: €1,100–1,700 per month; Florence: €900–1,400 per month; southern Italy: €400–700 per month. Italy is a country of contrasts: the expensive north and the much more affordable south.