Frequently Asked Questions About 2024 Italian Tax Rules

Below are some FAQs we are recently getting with respect to new Italian tax rules expected from January 1^st, 2024.

Q: By when will we know what the new rules are for 2024?

A: Dec. 31^st, 2023 is the term for the Italian Parliament to approve the 2024 budget law. By that date we expect to know what rules will apply in 2024.

Q: Is any relocation tax program expected to change?

A: Some restrictions and additional requirements are expected to apply to relocation tax programs for people earning employment or self-employment income for which there is currently a 70% – 90% income tax exclusion. 

Q: Is the 7% flat tax program expected to be affected? 

A: The 7% flat tax program for people collecting pensions is not expected to be affected by new 2024 Italian tax rules.

Q: What happens to people who are already in Italy? 

A: People who are registered as an Italian resident by December 31^st, 2023 are expected to be ‘grandfathered’ in to the existing relocation tax rules also with respect to 2024 and the following years.

Q: How long does it take to register as an Italian resident?

A: Although every situation is different, here are some examples of average timing:

• European Union or Schengen passport holder: 7-12 business days.
• Spouse of EU or Schengen passport holder: 7-12 business days.
• Italian visa holder waiting for Italian immigration permit (“permesso di soggiorno”): usually you need to wait until you get the immigration permit in hand. However, in exceptional cases, it is possible to do a temporary registration while waiting for the Italian immigration permit.  

Q: Can I apply for Italian residency based on a visa or immigration permit issued by another European country? 

A: It is not possible to apply for Italian residency based on a non-Italian visa or non-Italian immigration permit issued by another European country.

Q: I read that the residency registration process takes 45 days. Am I grandfathered into the current rules if I apply for residency in December and the 45-day process ends in January or February 2024?

A: Yes, for Italian residency registration purposes, the positive conclusion of the 45-day process has retroactive effects to the residency application date.

Q: Do I have to be physically present in Italy to apply?

A: No, you can apply remotely. We offer a service to apply remotely on behalf of our clients. However, you will need to be present in Italy sometime within the 45-day term for in person identification purposes.

Q: What do I need to apply for Italian residency?

A: Requirements depend on your personal situation, circumstances, and goals. 

Contact us to determine your options and a personalized strategy to pursue Italian residency.

Related information:

• Italian Residency Requirements
• 7% Flat Tax Information
• SLM’s Visa & Immigration Practice Area
• Italian Residency Timing

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