In order to attract high skilled subjects the Government with article 16 of Law 147/2015 provides a tax bonus in favor of those who moved their residency to Italy, the bonus consists of taxable income reduction of 50% for five years starting from the year of transfer.

For the ones who moved to Italy in 2016 the bonus is a taxable income reduction of 30% for the first year and of 50% for the four subsequent.

The conditions to be compliant to get the tax benefit are the following, and must be all fulfilled:

• the taxpayers must have their residence abroad during the previous five years, and must remain in Italy for at least two years;
• the job (only employees) must be directly for a company resident in Italy;
• the job must be conducted in Italy for at least 183 days during each year;
• the job must be a high skill position, with high qualification or specialization).

Other than the above provisions, the bonus is also granted to:

• the UE Citizens with degree that have been employed or self employed outside of Italy during the last two years; or
• the UE Citizens with degree that have been graduated in MBA or PHD outside of Italy during the last two years.

The tax bonus is directly dispensed by the employer after receiving a self declaration of the employ that grant to be compliant with bonus provisions.

As mentioned, if the employees will move outside Italy before the two year lock in period, the bonus must be returned plus fine and interests.

No specific reliefs are provided for social security contribution purposes with reference to the above mentioned subjects.