Irpef Refunds for Repatriated Workers: When and How to Get Them

The recovery of overpaid taxes is a highly topical issue, even for taxpayers who have benefited from the benefits reserved for those returning to work in Italy . So topical, in fact, that it has even ended up in court. The Irpef refund was the subject of ruling no. 23656 of August 19, 2025, by the Court of Cassation , which focused on a very specific issue: the recovery of overpaid taxes by those who benefited from the preferential regime reserved for repatriated workers.

The story that gave rise to the decision

The case examined by the judges stemmed from a very specific case: a taxpayer had moved to Italy and requested a refund from the Revenue Agency for the taxes he had overpaid in 2018. The individual in question claimed the right to benefit from the tax breaks reserved for repatriated workers even though there had been no prior request from the employer.

What made the situation slightly problematic was the lack of any response from the tax administration – so much so that the taxpayer believed that a silent dissent had arisen.

After the interested party appealed to the Provincial Tax Commission of Milan, the tacit denial was overturned and the IPEF refund was ordered. The decision was subsequently upheld by the Second Instance Tax Court of Lombardy ( ruling no. 297/2024 ). The Revenue Agency then appealed to the Supreme Court of Cassation, challenging the interpretation provided by the lower courts.

How benefits for repatriated workers work

Before delving into the issue of IRPEF reimbursement, it's important to remember what the benefits available to repatriated workers consist of.

The measure is applied only when explicitly requested by the employer or in the tax return : on this point, the Revenue Agency itself provides very precise indications with circular no. 33/E/2020 and the response to question no. 59/E/2020 .

The ways in which the benefits can be accessed vary depending on whether the worker is an employee or self-employed.

Employed workers

To access the regime for repatriated workers, the employee must submit a written request to their employer. The employer is required to apply the benefit directly to the first paycheck possible (this generally occurs starting from the employee's first year of Italian tax residence ). Furthermore, from the date of hiring, the employer applies withholdings to the reduced taxable income through a series of adjustments .

Occasionally, the employer may not be able to recognize the benefit directly on the paycheck. At this point, the taxpayer can take advantage of it when filing their tax return.

Within the single certification , for repatriated workers, income from employment must always be indicated at a reduced rate.

Self-employed workers

Self-employed workers can access the preferential regime for repatriated workers when filing their tax return. Alternatively, they can benefit from it when the withholding tax is applied directly by their clients when they issue the invoice.

Should they opt for this solution, the professional must submit a written request to each client, so that the client can apply the 20% withholding tax on the taxable amount reduced to the taxable percentage (the reference, in this case, is circular no. 17/E/2017 ).

In which cases are excess taxes paid?

The rules we've seen so far allow us to properly understand how the benefits provided for repatriated workers work. Returning to the issue of the IRPEF refund, the Revenue Agency argued that the worker didn't need it because he hadn't submitted a written request to his employer to apply for the benefits. Not only that, he hadn't exercised the option when filing his tax return.

To justify its position, the Revenue Agency emphasized that the preferential regime (introduced by Article 16 of Legislative Decree no. 147/2015 ) was exceptional in nature: for this reason, it was necessary to promptly comply with all formal requirements. Failure to comply with any of these requirements precludes recognition of the tax benefits.

The Court of Cassation's response on this point was clear: before paragraph 5-ter of Article 16 of Legislative Decree no. 147/2015 was introduced by Legislative Decree no. 34/2019, there was no law in force expressly prohibiting the reimbursement of any sums paid voluntarily by taxpayers.

The judges emphasized that the provision is not retroactive. This was clarified by conversion law no. 58/2019 : the rules, therefore, cannot be applied to previous years .

Irpef refund due: the final decision

The Court of Cassation rejected the appeal filed by the Revenue Agency.

The ruling of the Lombardy tax judges was valid. Failure to submit a request to the employer and not selecting the option on the tax return do not automatically result in the forfeiture of benefits for repatriated workers, especially when there is no clear and evident legislative provision to this effect.

This means that for years prior to 2019, workers have the option of submitting an IRPEF refund application pursuant to Article 38 of Presidential Decree no. 602/1973 , provided they meet the requirements.

The Court of Cassation also ordered the Revenue Agency to pay the legal costs.

We are faced with an important ruling, which follows in the footsteps of previous rulings, which have reinforced the principle that limitations introduced by the legislature never have retroactive effect.