New “Impatriati” Regime and Former Cross‑Border Workers: Clarification from the Italian Revenue Agency

With Ruling No. 12/2026 issued on 20 January 2026, the Italian Revenue Agency clarified that the new tax incentive regime for inbound workers (“impatriati”) may also apply to individuals returning to Italy after a period of tax residence abroad, even if during that period they continued to work in Italy as cross‑border commuters (“frontalieri”).

The Case Submitted to the Tax Authorities

More specifically, the ruling concerns an employee hired by an Italian company in 2016. After spending the first two years of employment living in Italy, the individual transferred their residence abroad in 2018, registering with AIRE and filing annual tax returns with the foreign tax authorities. Despite residing abroad, the individual continued to commute daily to Italy to perform work at the employer’s premises, thus representing a typical case of cross‑border employment.

In view of a planned return to Italy in 2026, the employee asked the Revenue Agency whether they would be eligible for the new inbound workers regime, notwithstanding the fact that throughout the period of foreign residence their work was physically carried out in Italy for the same employer.

Regulatory Framework

As highlighted in the Agency’s response, the rules governing the new “impatriati” regime—generally applicable for four tax periods following the transfer of residence—are laid out in Article 5 of Legislative Decree No. 209/2023, as amended by Article 22 of Law No. 132/2025. Under these provisions, income produced in Italy by workers transferring their tax residence to Italy from 2024 onwards contributes to taxable income at a 50% rate, up to EUR 600,000 per year, provided that the worker:

(i) was not a tax resident in Italy during the previous three tax periods;

(ii) commits to maintaining Italian tax residence for at least four years;

(iii) performs their work activity in Italy for the majority of each tax period;

(iv) meets the conditions of high qualification or specialization set out in the law, or has carried out research activities in the field of artificial intelligence technologies.

With regard to the minimum period of foreign residence, the Agency recalls an important clarification: the standard requirement of three tax periods is extended to six or seven tax periods when the worker returns to Italy to work for the same employer for whom they worked abroad, or for an entity belonging to the same group. In particular, the requirement is six years when returning to work for the same employer abroad, and seven years when the employee had already worked in Italy for that employer before relocating abroad.

Work Activity Carried Out in Italy During the Period of Foreign Residence

The key issue addressed in Ruling No. 12/2026 concerns the place where the work activity is carried out during the period of foreign residence preceding the return. On this point, the Revenue Agency clarifies that Article 5 of Legislative Decree No. 209/2023 does not require that the activity be performed abroad. Consequently, having worked in Italy as a cross‑border commuter does not in itself preclude access to the tax incentive, provided that all other eligibility conditions are met.

The Agency also recalls its earlier Ruling No. 66/2025, reiterating that the new regime no longer requires the taxpayer to demonstrate the so‑called “functional link” between the transfer of tax residence and the start of the work activity generating the eligible income. This requirement applied under the former regime set out in Legislative Decree No. 147/2015, but is no longer relevant under the new rules.

The Revenue Agency’s Position on Former Cross‑Border Workers

In conclusion, with Ruling No. 12/2026 the Revenue Agency confirms that the new inbound workers regime may be applied to former cross‑border workers, since the location where the activity was carried out during the period of foreign residence is not relevant for accessing the tax benefit. The incentive is therefore potentially available even when the work was continuously performed in Italy. However, all conditions under Article 5 of Legislative Decree No. 209/2023 must be cumulatively met, with particular attention to the minimum period of prior residence abroad, which may be significantly longer when the worker returns to perform services for the same employer they worked for during their period of foreign residence—and even more so when the employment relationship already existed in Italy before moving abroad.