Digital nomads and mountain smart working in Italy: tax incentives from 2026
Italy is working on becoming a premium destination for digital nomads and remote workers, especially in small villages and mountain areas suffering from depopulation.
There are two main pillars:
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A planned tax incentive for digital nomads who move their tax residence to Italy (not yet in force).
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The Law 12 September 2025, no. 131 (“Legge sulla Montagna”), already in force, which grants social security contribution relief for companies hiring remote workers in mountain municipalities. LavoroSi+2Ticonsiglio+2
The draft measure for digital nomads would allow:
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employment income and self-employment income produced in Italy,
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up to €600,000 per year,
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to be taxed only on 50% of their amount,
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for five tax years (year of transfer plus four more).
However, this is still under discussion at ministerial level and not yet published in the Official Gazette, so details may change. PublicPolicy+2CorCom+2
On the other hand, Law 131/2025 is fully in force and provides a five-year decreasing contribution relief (100%, 50%, then 20% within specific caps) for companies hiring under-41-year-old employees, on permanent contracts, working mainly in smart working, who move their residence to a mountain municipality under 5,000 inhabitants. lagazzettadeglientilocali.go-vip.net+3Ticonsiglio+3Travel for business+3
If you are:
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a digital nomad considering moving to Italy,
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an employee willing to relocate to a mountain village while keeping your remote job, or
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a company planning to use these incentives in your HR strategy,
you will need careful tax and legal planning:
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residence and double-tax treaty analysis;
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choice among different Italian inbound tax regimes;
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alignment between employment contract, smart working agreement, and incentives requirements;
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assessment of social security and long-term life plan (family, housing, investments).
As a chartered accountant based near Padua, I can help you design a tailor-made plan to make the most of these opportunities while staying compliant with Italian tax law – with all the advice, experience and empathy your personal case deserves.
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