Fiscal-advisory portal Fiscomania, in an analysis dated 4 July, confirms that Decree-Law 38/2026 will bar taxpayers from simultaneously applying Article 5 (impatriate regime) and Article 24-bis (flat tax for new residents) of the TUIR from the 2027 tax year. Until now, some high-earners transferred to Italy by multinationals exploited the overlap to shield foreign-source income at €100 k while benefiting from a 50 % exemption on Italian-source salary for five years. The decree, published in the 2 July Gazzetta Ufficiale, gives a one-year transition: individuals who establish Italian tax residency no later than 31 December 2026 may continue to cumulate the two incentives for the full statutory period. Academics under the special researchers-and-professors regime remain exempt from the new incompatibility.
![‘Impatriate’ tax break can no longer be combined with €100 k ‘new-resident’ flat tax after 2026]()
For executives and HR departments dealing with the practicalities of moving talent before the cut-off, VisaHQ can simplify the immigration side of the equation. Its digital service (https://www.visahq.com/italy/) guides users through Italian visa, work-permit and residence-permit requirements, schedules consular appointments and tracks application milestones—helping companies meet tight relocation deadlines while they fine-tune the tax planning described above.
Employers planning inbound assignments must therefore fast-track relocations if they intend to offer the dual benefit. Tax advisers recommend signing secondment letters before November so that town-hall registration (a prerequisite for tax residence) can be completed in time. From 2027 companies will have to weigh whether to keep staff under the impatriate relief (which will drop to 40 % in 2027) or compensate them for the higher flat-tax cost (€300 k under the revised non-dom regime). The change aligns Italy with OECD concerns over overlapping preferential regimes and is expected to save the treasury €180 million annually from 2028.
For executives and HR departments dealing with the practicalities of moving talent before the cut-off, VisaHQ can simplify the immigration side of the equation. Its digital service (https://www.visahq.com/italy/) guides users through Italian visa, work-permit and residence-permit requirements, schedules consular appointments and tracks application milestones—helping companies meet tight relocation deadlines while they fine-tune the tax planning described above.
Employers planning inbound assignments must therefore fast-track relocations if they intend to offer the dual benefit. Tax advisers recommend signing secondment letters before November so that town-hall registration (a prerequisite for tax residence) can be completed in time. From 2027 companies will have to weigh whether to keep staff under the impatriate relief (which will drop to 40 % in 2027) or compensate them for the higher flat-tax cost (€300 k under the revised non-dom regime). The change aligns Italy with OECD concerns over overlapping preferential regimes and is expected to save the treasury €180 million annually from 2028.
