Inbound workers regime: clarifications provided in the last months

​

In its ruling no. 274 of October 28, 2025, the Italian Tax Authority analyzed the case of three employees of an Italian company who benefited from the inbound workers regime for tax years 2021–2024 (applying the provisions in force for those years under Article 16 of Legislative Decree 147/2015). Specifically, these employees had received income from stock option plans and similar instruments granted by the Italian company, which were scheduled to vest in 2025.

In 2024, the employees terminated their employment with the Italian company and, from 2025, moved their tax residence to Greece. The ruling addressed whether the inbound workers regime could apply to income received by individuals no longer tax resident in Italy but related to employment previously performed in Italy. The Italian Tax Authority denied the application of the regime to such income because the employees no longer met all the necessary requirements, as their tax residence was no longer in Italy.

In fact, the income from the stock option plans is related to years when the inbound workers regime was applicable; however, this income is actually received in 2025. Since these earnings are taxed on a cash basis, taxation occurs in the year of receipt, when the requirements for the regime are no longer met.

Regarding the new inbound workers regime (regulated by Article 5 of Legislative Decree 206/2023 and applicable from 2024), ruling no. 263 of October 13, 2025 examined the foreign residence requirement.

In particular, the ruling regards a taxpayer who had lived abroad for three tax years, working for a foreign company while also teaching at an Italian university. From 2026, the taxpayer plans to move to Italy to work for a company unrelated to the foreign employer, while continuing the collaboration with the same university.

The Italian Tax Authority clarified that the new Italian resident may benefit from the inbound workers regime in 2026 only for income earned from the new employment with the unrelated company. Income from the university collaboration, however, is excluded since comes from work performed for the same employer during the period of foreign residence, requiring a longer seven-year period of prior foreign residence.

With ruling no. 30569 of November 20, 2025, the Court of Cassation analysed the access to inbound workers regime (under Article 16 of Legislative Decree 147/2015) even if the option was exercised through an amended tax return.

The case concerned a taxpayer who returned to Italy in 2016 but did not request application of the regime through payroll nor claim it in the original tax return. The Italian Tax Authority denied reimbursement of excess taxes paid for 2016–2017 because the option was exercised via amended returns filed on February 15, 2020 (i.e., 90-day after the deadline provided by Italian Tax Law). This denial aligned with Circular no. 33/2020, which stated that, as an optional regime, the inbound workers benefit cannot be claimed through an amended return filed more than 90 days after the original deadline.

However, the Court of Cassation, in line with a growing jurisprudential trend, overturned this interpretation, ruling that the benefit applies if the taxpayer proves they meet the substantive requirements, even if the option is exercised late through an amended return.

The Ministry of Economy, in response to question time no. 5-04717 in the Finance Committee of the Chamber of Deputies, confirmed that the tax relief granted to inbound self-employed workers is subject to compliance with EU “de minimis” aid rules.

Specifically, Article 5(7) of Legislative Decree 209/2023 provides that the tax discount for inbound self-employed workers cannot exceed the limits set by EU Regulation 1407/2013, which caps total “de minimis” aid to a single enterprise at Euro 200,000 over three fiscal years. This ceiling was later raised to Euro 300,000 by EU Regulation 2831/2023.

The three-year period is calculated on a rolling basis: for each new benefit, the total aid granted in the previous three years must be verified.​

Ministerial Decree no. 115/2017, which governs the National Aid Register (RNA), states that exceeding the cap invalidates the benefit. Consequently, if an inbound professional exceeds the threshold (e.g., by incorrectly calculating the three-year period on a fixed rather than rolling basis), some Italian Tax Authority offices consider that the entire exemption is forfeited, not just the portion exceeding the limit.