Italy Tax Agency Clarifies Individual Income Tax Incentives for Returning Researchers, Teachers

The Italian Revenue Agency March 18 issued Letter No. 80/2026, clarifying the individual income tax incentive for researchers and teachers returning to Italy. The taxpayer, a professor, returned to Italy in 2019 after residing abroad, claimed the incentive for 2019 through 2022, exercised an extension in 2023 based on his one minor child, then had a second child. The taxpayer sought clarification on extending his eligibility. Upon review, the Tax Agency clarified that: 1) taxpayers returning with one child, or having a child within the first six tax periods, and then having a second child within the eighth tax period, ...