Italian 2026 Finance Bill – Key Tax Measures: Support for Middle and Low Incomes | Revision of IRPEF tax brackets | Baby bonus | Enhanced parental leave and nursery bonus | Social security exemption for working mothers | Increased deductions for private school expenses | Family endowment fund | First home mortgage guarantee fund | Support for food purchases | Energy-efficient appliance bonus | Cap on deductions for incomes over €75,000 | Exceptions for healthcare, mortgages, and startup investments | End of deductions for children over 30 (except disabled children) | “Hire more, pay less” tax deduction for new permanent hires | Reduced tax on productivity bonuses | Fringe benefit exemptions | Relocation support for new hires | Raised flat tax threshold for employees and pensioners | Reduced corporate tax (IRES) for reinvested profits | Tax credits for southern Italy investments | Enhanced “Nuova Sabatini” machinery financing | Support for SME stock market listings | Increased public investment in defense, infrastructure, and healthcare | Banking and Insurance | Deferred deductions for financial sector losses | Annual stamp duty on life insurance contracts

Degrees of Kinship and Affinity Under Italian Law

The Italian Civil Code (Articles 74 ff) contain the criteria for determining the degree of kinship and affinity of your relatives.  This degree is a fundamental concept in Italian law and is an essential part of, among other things, the rules of inheritance and succession.

The table in the pdf document below below the degrees of kinship between you and one of your relatives under Italian law.

Your Relatives' Degree of Kinship

Relative Degree & Line
Parents 1st degree – direct ascending line
Grandparents 2nd degree – direct ascending line
Great-grandparents 3rd degree – direct ascending line
Children 1st degree – direct descending line
Grandchildren 2nd degree – direct descending line
Great-grandchildren 3rd degree – direct descending line
Brothers and sisters (siblings) 2nd degree – lateral relatives
Nieces / nephews (children of siblings) 3rd degree – lateral relatives
Grand-nieces / grand-nephews (children of nieces/nephews) 4th degree – lateral relatives
Children of grand-nieces / grand-nephews 5th degree – lateral relatives
Paternal and maternal uncles / aunts (parents’ siblings) 3rd degree – lateral relatives
Cousins (children of uncles/aunts) 4th degree – lateral relatives
Children of cousins 5th degree – lateral relatives
Children of children of cousins 6th degree – lateral relatives
Great-uncles / great-aunts (grandparents’ siblings) 4th degree – lateral relatives
Parents’ cousins 5th degree – lateral relatives
Children of parents’ cousins 6th degree – lateral relatives
Recent Blog Posts
Italian Tax on Foreign Pensions

If your pension is liable to tax in Italy (which will be the general position absent exemption under a DTA) then you need to follow Italian rules on the timing of a receipt for tax purposes. 

Read More »