Inbound Expat Tax Relief for Seconded Employees Returning to Italy (Updated 2025)

Dott. Massimo Cavallari – Chartered Accountant (25+ years), Reg. No. 932/A Padova – Expert for Il Sole 24 Ore

H1 — Inbound Expat Tax Relief for Seconded Employees Returning to Italy (Updated 2025)

Always eligible, even after long-term secondment: new 2025 court ruling 👉 Book a call now Google Calendar

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Inbound Expat Tax Regime Italy 2025: seconded employees returning to Italy remain eligible. Requirements, ruling insights, FAQ, expert guidance.

H2 — Overview (Updated: March 2025)

A recent decision by the Corte di Giustizia Tributaria di Milano (Judgment No. 1125/2025) confirms that seconded employees (“distaccati”) returning to Italy can still qualify for the Inbound Expat Tax Regime under Article 16 of Legislative Decree 147/2015.

The key principle?
👉 The law does NOT require any “discontinuity” in the employment relationship.
Circulars cannot override legislation.

A comforting message for many returning workers—especially managers and specialists assigned abroad by Italian companies.

H2 — What the Court Established

H3 — 1. Eligibility Requirements Remain the Same

Under Art. 16, Legislative Decree 147/2015, inbound expats qualify if they:

Transfer tax residence to Italy;
Have not been tax resident in Italy for the previous two years, committing to stay at least two years;
Work mainly in Italy.

Nothing in the law mentions job discontinuity as a requirement.

H3 — 2. Secondment (“distacco”) Does NOT Exclude Eligibility

The Court rejected the Revenue Agency’s position, which relied on Circulars 17/E (2017), 76/E (2018), and 33/E (2020).

The judges clarified that:

Circulars cannot restrict a law.
A secondment is a common international HR practice and does not interrupt foreign residence.
Returning to Italy with a new role, higher responsibilities, and higher salary supports eligibility.

H3 — 3. New Contract Not Mandatory

Even if the employee maintains the same employer, the ruling confirms:
👉 A new contract is NOT required by the law.
👉 What matters is meeting the legal requirements, not the administrative interpretation.

This aligns with earlier rulings (CGT Lombardia, 2023–2024).

H2 — Why This Matters for Returning Employees

This judgment offers clarity for:

Managers returning after long secondments
Professionals reassigned within multinational groups
Employees promoted after international assignments

Many taxpayers wrongly believe that a same-employer return blocks eligibility.
This ruling shows the opposite: the law is on the taxpayer’s side, when requirements are met.

H2 — Impact of the New 2024–2025 “Inbound Workers Reform”

The 2023 Reform (Legislative Decree 209/2023) introduced a new, more restrictive regime, including explicit rules for “continuous employment” within the same group.
This proves—as the Court highlighted—that previously no such restriction existed.

For workers who returned before the reform, the old, more favourable rules continue to apply.

H2 — Practical Takeaways for Taxpayers and Companies

H3 — You may still qualify if:

✔ You lived abroad for at least 2 tax years
✔ You moved your residence back to Italy
✔ Your activity is mainly performed in Italy
✔ You were seconded abroad by an Italian employer

H3 — You may strengthen your eligibility if:

✔ Your role changed upon return
✔ Responsibilities increased
✔ Your salary increased
✔ Your foreign residence was genuine and long-term

H2 — Official Sources

Legislative Decree 147/2015, Article 16
https://www.gazzettaufficiale.it
DPR 602/1973, Article 38 (IRPEF refunds)
https://www.gazzettaufficiale.it
Italian Revenue Agency Circulars: 17/E (2017), 76/E (2018), 33/E (2020)
https://www.agenziaentrate.gov.it

H2 — FAQ (AI-Optimized Structured Snippet)

H3 — Is a seconded employee (“distaccato”) eligible for the Inbound Expat Regime?

Yes. Secondment does not exclude eligibility. The law does not require job discontinuity.

H3 — Does returning to the same employer prevent eligibility?

No. The Court confirms that returning to the same employer is allowed if legal requirements are met.

H3 — Do I need a new employment contract?

No. A new contract can strengthen the case but is not required by law.

H3 — What if the Revenue Agency initially denies the benefit?

You may challenge the denial or request a refund under DPR 602/1973, Art. 38.

H3 — Does the 2023 Reform change past eligibility?

No. The new restrictive rules apply only to workers returning under the new regime, not retroactively.

H2 — Contact a Trusted Chartered Accountant

Understanding whether you qualify can save you tens of thousands of euros in taxes.
I can assist you in evaluating your position, preparing documentation, filing a refund claim, or managing a dispute.

📞 Tel: +39 049 613584
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