Italy to Introduce Tax Break for Digital Nomads in 2026: What's the Initiative?

Following the introduction of a digital nomad visa in 2024, Italy is considering a new tax incentive specifically designed for digital nomads. This measure is currently being discussed by legislators as part of the 2026 Budget Law.

While this proposal has not yet been adopted, its discussion is no coincidence. It reflects a broader strategic shift in Italian immigration law.

Digital Nomad Visa in Italy

In 2024, Italy finally decided to issue residence permits for remote workers from non-EU countries. The digital nomad visa allows highly qualified professionals to reside in Italy while working online for a foreign employer or foreign clients as self-employed professionals.

This visa type is based on clear requirements: minimum income, health insurance, residency, proof of remote work, and at least six months of work experience.

Tax System 2025

In the country's tax plan, the main incentive for immigration to Italy is the recently reformed immigrant regime, which came into effect in 2025. This regime requires:

three years of tax residency abroad before moving to Italy;

higher education or a highly skilled worker qualification;

work performed primarily in Italy.

It should also be noted that the system applies only to income from employment and professional income, excluding business income.

The complexity of this regime lies in the fact that for many digital nomads, whose tax residency has frequently changed between countries, fulfilling the three-year requirement and the education/highly skilled requirements may be impossible.

New Tax Bonus for Digital Nomads in 2026

The Italian government is considering an amendment to the current Immigration Law. The amendment aims to create tax incentives specifically for individuals moving to Italy as digital nomads.

While legislators have not yet published the technical details (percentage reduction, duration, eligibility requirements), the fact that this innovation is even being considered is noteworthy.

Even before the final bill is published, the introduction of a special tax incentive for digital nomads signals several trends:

A shift toward individualized policies. Italy is increasingly moving away from focusing on traditional immigration incentives.

Alignment of immigration and tax systems. After the digital nomad visa came into effect, Italy lacked a corresponding tax instrument. Policymakers intend to close this gap.

Increasing competitiveness. Other jurisdictions have previously used the digital nomad visa in their economic strategies. Italy's current actions demonstrate a commitment to remaining competitive in this area.

Recognition of the limitations of the current immigration regime. The strict requirements of the 2025 immigration regime exclude a significant portion of remote professionals. The legislative amendment will allow Italy to expand its attractiveness without changing its recently reformed regime.

What digital nomads should consider before applying

Following the official publication of the draft, key aspects for application review will include:

Definition of program eligibility criteria (education, income, remote work requirements, etc.);

Duration of the benefit;

Availability of employment, self-employment income, or both;

Residence and physical presence requirements.

Until the authorities publish the final version of the legislative amendment, planning should continue within the framework of existing provisions, namely the digital nomad visa (for non-EU citizens) and the 2025 immigrant regime for those who meet the criteria of this program.

It is also important to note that the proposed tax bonus for digital nomads is not yet final.

NATLAN continues to closely monitor the legislative process in Italy. Further clarification of the details will determine how accessible and effective this initiative can be.

If you are planning to obtain a residence permit, invest in a country's economy, open a business in the EU, or purchase real estate abroad, we invite you to a consultation with our company. During a personal online meeting, we will thoroughly examine your questions and create a step-by-step action plan for you.