Italy implements rent bonus for relocated workers

Under the 2025 Budget Law, a new rent bonus has been established for employees who relocate for work. Unlike standard tax deductions, this benefit functions as a tax-free reimbursement paid directly through payroll by the employer.

To qualify, workers must have moved their residence to a municipality more than 100 kilometers away from their previous residence and the new work location. The benefit is limited to the first two years of employment and covers rental payments and property maintenance costs up to a maximum of 5,000 euros per year.

Eligibility is subject to specific criteria, including a previous year's employment income not exceeding 35,000 euros. Because the mechanism is managed via payroll rather than tax returns, employees cannot claim the amount through their annual tax declaration if the employer has not activated the reimbursement.