If you’re looking to attract top international talent, offering competitive benefits can be a game-changer. One of Italy’s unique advantages is the Rientro dei Cervelli programme, designed to bring highly skilled professionals back to Italy with significant tax incentives. Rientro dei Cervelli translates to “return of brains”. This initiative provides strategic advantages for employers and employees by reducing the tax burden on high-skilled professionals relocating to Italy. In this blog, I will break down the specifics of the Rientro dei Cervelli program, including its benefits, eligibility criteria, and application process, helping you understand how to leverage this regime to attract and retain top talent and how Italian Employer of Record can help.

What is the Rientro dei Cervelli?

Launched in 2019, the Rientro dei Cervelli program, officially known as the “Lavoratori Impatriati,” aims to entice skilled professionals back to Italy by offering them a reduced tax rate for their first five years in the country. Initially, qualifying individuals were taxed at a 70% reduction on income earned in Italy, with the exemption recently amended to a 50% reduction starting January 1, 2024. This strategic advantage can significantly impact an employee’s net income, making positions in Italy more appealing.

Who can benefit from the Rientro dei Cervelli?

Now, as an employer, if you’re considering the Rientro dei Cervelli for your workforce, it’s important to know who qualifies. Here are the key points:

1. Non-residency: The individual should not have been an Italian tax resident for at least three years before relocating.
2. Work-based move: They must be moving to Italy for work—whether it’s through a job offer or an international company transfer.
3. Location of work: At least 85% of their professional duties need to take place in Italy.

The great news is that the programme has expanded to include remote workers and innovative professionals working in start-ups or R&D. That means even if your employee is primarily remote, there could still be a tax benefit!

What are the advantages of the Rientro dei Cervelli?

Let’s talk about why this programme is such a win-win for both employers and employees:

1. Tax reductions: A 50% reduction in income tax is a huge incentive, allowing your employees to earn more without the usual tax burden. This can make the difference when you’re trying to recruit top-tier talent.
2. Wealth tax exemptions: Individuals on this programme only pay wealth tax on properties within Italy, not on global assets. This is a big relief for high earners.
3. Simplified tax process: The programme simplifies tax obligations for employees, making the process smoother for them and reducing the headaches for employers trying to navigate Italy’s tax laws.

Personally, I’ve seen how this programme can make a real difference for companies looking to stand out in a competitive global hiring market. Being able to offer such a substantial benefit makes your job offers far more attractive.

How to apply for the Rientro dei Cervelli

Helping your employees through the process isn’t as difficult as it might seem. Here’s a simple breakdown of the steps:

1. Gather documents: Proof of residence outside Italy and the employment contract are essential.
2. Submit the application: Your employee will need to apply with the Italian tax authorities, providing all the necessary documentation.
3. Approval: Once approved (usually within 1-2 months), you’ll be able to apply the reduced tax rate for your employee.

How Italian Employer of Record can assist

Handling the ins and outs of the Rientro dei Cervelli programme can be tricky, especially when you’re trying to keep up with compliance and payroll regulations. This is where partnering with a specialised Employer of Record in Italy can make your life a whole lot easier. By working with a local Employer of Record, you can ensure that all the tax incentives are properly applied and your business stays fully compliant with Italian labour laws.

At the end of the day, the Rientro dei Cervelli isn’t just a great tax advantage—it’s a strategic tool for attracting and retaining top talent. With the right support from Italian Employer of Record, you can make the most of this opportunity without worrying about the administrative complexities. This lets you focus on growing your business and managing your international talent effectively. Contact us today!