Latest data confirms it: Italy’s tax regimes aren’t just expanding — they’re changing

Official figures on Italy’s beneficial tax regimes for the previous year paint a clear picture: the country was building a larger package of tax incentives to attract new tax residents. The focus was on employees, academics, retirees, and affluent foreign individuals — a group that has become increasingly visible on Italy’s budget and migration agenda.

Updated data from the Ministry of Economy and Finance for the 2024 tax period confirms the overall trend. But there’s now an important nuance: Italy’s special regimes are no longer only an “expanding shop window.” They are moving into a more selective, more publicly debated, and more politically sensitive phase.

At the same time, the numbers remain strong. In 2024, the impatriate regime (for qualifying employees, allowing part of employment income to be excluded from taxation) applied to 44,881 workers, compared with 41,020 in 2023.

The professors and researchers regime, which provides a similar exemption for academics and researchers relocating to Italy, covered 4,774 employees (in 2023 — 4,102). The average gross employment income in this category was €56,411.

Growth also continued for the flat tax for new residents, which replaces ordinary taxation of foreign-source income with an annually fixed rate.

In 2024, 1,631 people applied to the NR (new residents) section, up from 1,242 in 2023. Of them, 48.4% additionally declared income sourced in Italy. In total, this amounted to €102.5 million, with the focus mainly on employment income.

The 7% regime for foreign retirees (a fixed 7% substitute tax on foreign-source income for pensioners moving to eligible municipalities in Southern Italy) reached 933 taxpayers, versus 672 in 2023.

Bottom line: all four regimes continued to expand.

2024 data in context

First, it’s important to underline one point: these income profiles can hardly be called “borderline.”

The average declared income in Italy in 2024 was €25,820. Against this baseline, employees under the impatriate regime reported an average gross employment income of €120,922 — roughly 4.7 times the national average.

For researchers and professors, the average declared income was €56,411 — more than double the Italian average. New residents who also declared Italy-sourced income generated around €102.5 million of taxable income within the country. Foreign retirees under the 7% scheme reported an average of about €61,500 in foreign-source income per person.

Why does this matter? Discussions about favorable regimes often center on the “size of the discount.” But there is a counterfactual: many of these individuals likely would not have become Italian tax residents without the targeted tax instrument.

A favorable regime isn’t just a tax concession. It’s a mechanism for bringing income and economic activity into the country: these taxpayers bring financial flows, consumption, real estate investment, and spending on education and consulting services. In many cases, it also includes social contributions and employment relationships that might otherwise have remained outside Italy.

That said, this doesn’t mean there is no criticism. But these regimes should be discussed based on data rather than intuitive assumptions.

Impatriate: growth continues, but the real test is ahead

The impatriate regime remains the largest among Italy’s incoming tax incentives. In 2024, it covered 44,881 employees, and the average gross employment income was €120,922. This is a clear increase both in headcount and in income levels compared with 2023.

However, the 2024 figures should be interpreted carefully.

In 2024, changes introduced by Legislative Decree No. 209/2023 were in effect: the new wording started in 2024 and became more stringent. In general, the benefit is limited to 50% of taxable income, or 40% if certain conditions regarding minor children are met. There is also an income cap up to €600,000.

According to the agency, only a small portion of the employee population in 2024 fell under the new codes: 1,617 employees under the 50% rule and 455 under the 40% rule. Most beneficiaries in 2024, based on the structure of the codes, appear to still be reflected under older versions of the regime.

This isn’t a weakness of the statistics. It’s actually the key to understanding them: the 2024 data shows the accumulated strength of the previous model, but it does not yet fully capture the attractiveness of the new, more limited version.

The main “exam” for the reformed impatriate will be the statistics for 2025–2026, when more people will enter under the tighter conditions.

For now, the message looks mixed but broadly positive: the regime continues to attract and retain high-income workers, while the state is clearly shifting emphasis away from the most generous model toward a more controlled and selective approach.

There’s also a technical point that shouldn’t be overlooked. The 44,881 figure refers to employees. The Ministry also notes that the regime affected 5,720 taxpayers with self-employment or business income, of whom 1,012 also had employment income.

Because of overlap, you can’t simply add these numbers to obtain the exact count of unique beneficiaries. But the overall conclusion is clear: the regime remains significant not only for employees, but also for professionals and entrepreneurs.

Professors and researchers: smaller in scale, but strategically more important

The professors and researchers regime is smaller in headcount, but its role is notable.

In 2024, it applied to 4,774 employees, with an average gross employment income of €56,411. The regime also extended to a limited number of taxpayers with self-employment income; however, the employee figure remains the key metric.

Compared with impatriate, the targeted policy behind the professors and researchers regime is narrower: it is designed to attract academic and scientific human capital. That naturally means a lower scale. Still, assessing its value only through tax numbers would be methodologically wrong.

These specialists bring institutional connections, international networks, research output, teaching capacity, and reputation effects for universities and research centers. For a country historically dealing with “brain drain,” this regime remains one of the clearest examples of how tax policy can be used as a tool for managing human capital.

2024 data shows continued growth, but without a “step-change” acceleration. For this category, that may not be a problem: quality and profile matter more than volume.

New residents: flat tax keeps expanding

The flat tax for new residents is one of the most politically sensitive regimes in Italy. At the same time, it is among the most visible internationally.

In 2024, 1,631 people submitted applications to the NR section. That is 31% more than in 2023.

Almost half of the applicants — 48.4% — additionally declared income sourced in Italy. The total volume was €102.5 million. The Ministry separately notes that, in most cases, this Italian income is employment income, accounting for 73.3% of the total amount.

This is an important nuance. Flat tax is often described as a “passive” regime for people who merely change their tax residency while keeping their economic activity abroad. But the data suggests a more complex picture: a meaningful share of new residents declare income in Italy, and those incomes continue to be taxed under ordinary rules.

2024 also coincided with a reform period. For those who transfer their tax residency to Italy after August 10, 2024, the annual substitute tax increases from €100,000 to €200,000. And starting in 2026, the entry threshold rises further: based on current professional guidance, the annual flat tax increases to €300,000 for the main applicant and €50,000 for each eligible family member.

That’s why the 2024 statistics are especially valuable: they show that the regime continued to expand up to the full effect of the higher entry cost. The question now is whether Italy can maintain momentum after moving from €100,000 to €200,000 and then to €300,000.

The applicant mix is likely to change. The regime may become less attractive for “just wealthy” individuals with mainly passive scenarios, while remaining visible for ultra-high-net-worth clients with substantial foreign income, complex international assets, and a demand for stability, lifestyle, and European residency.

In other words, marginal demand may fall, but the regime becomes more selective.

7% pension regime: quietly growing and becoming more visible

The 7% regime for foreign retirees is discussed less often than the flat tax for new residents, but 2024 data points to substantial growth.

The number of taxpayers rose from 672 in 2023 to 933 in 2024 — nearly 39%. These taxpayers declared €37.6 million in foreign pension income (average €40,262) and €57.4 million in total foreign-source income. The substitute tax declared was €4 million.

The logic of this regime differs from flat tax. It isn’t designed to attract “billionaires in Milan or Rome.” Its goal is to integrate foreign pension income and consumption into small municipalities in Southern Italy and into certain eligible regions.

On a per-person basis, this regime is typically smaller than HNWI-style scenarios. But the territorial objective is also different. If it is properly linked to local strategies on housing, healthcare, and municipal development, it can be a relatively modest but useful tool for “revitalizing” areas.

The key challenge is implementation. One tax regime won’t make a small town attractive by itself. It can provide attention and financial incentive, but factors such as infrastructure, service quality, access to healthcare, language support, and housing quality determine whether retirees actually move and stay.

What the data actually shows

The 2024 statistics do not prove that favorable regimes are perfect. They don’t answer questions about housing in major cities, distributional effects, or how generous the conditions should be.

But they do show something important: these regimes are not just symbols. They are being used, they are growing, and they attract taxpayers with income profiles that clearly exceed the national average.

This matters for Italy.

Italy is a country with high tax burden, demographic pressure, a history of emigration of skilled workers, and a persistent need to attract capital and talent. In this context, favorable regimes are not mere exceptions. They are competitive tools.

The best policy question isn’t “should they exist at all?” but “how should they be designed” to attract the right categories, preserve legal certainty, prevent abuse, and create an effect that goes beyond the personal benefit of the beneficiaries.

2024 data points in exactly that direction. Italy tightened impatriate, increased the entry cost of the flat tax for new residents, preserved the professors and researchers regime, and allowed the 7% pension scheme to keep growing. This doesn’t look like a policy of unconditional discounts. It looks more like movement toward segmentation.

Different regimes are for different categories. Workers, academics, HNWI, and retirees are not the same population group, and they can’t be treated identically.

The system is maturing

New statistical evidence confirms that Italy’s incoming tax regimes remain attractive. But the more interesting signal is that the system is maturing.

Impatriate is moving from broad generosity to a stricter, more selective model. The professors and researchers regime continues to support scientific attraction. Flat tax for new residents is becoming more expensive, which likely shifts it closer to the ultra-wealthy segment. And the 7% pension regime is growing as a less mass-market, but potentially useful, territorial tool.

Ultimately, this isn’t a “mass migration machine,” but a set of targeted mechanisms, each with its own purpose.

For Italy, the conclusion is simple: favorable regimes can work — but only if they are stable, understandable, and built around real economic goals. The 2024 data shows that despite reforms and policy debate, international taxpayers continue to respond.

This isn’t an argument to stop tuning the system. It’s an argument not to dismantle it — but to improve it.

If you’re considering Italy as your next relocation destination, it’s crucial to track how its tax landscape is becoming more “targeted” and selective. Digital Nomad can help you assess your case and choose the best route—starting from reviewing eligibility for relevant regimes and moving through document support and timelines. Learn more at https://digital-nomad.gr/en/goldenvisa and plan your move with clarity.

Our Telegram channel about various types of Greek residence permits, digital nomad programs, and the Greek Golden Visa: @digitalnomadgr