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

Doing Business in Italy Guide

Trends and Predictions

14.1 Digital Transformation

Italian businesses are increasingly adopting digital tools, including e-invoicing, cloud accounting, and remote collaboration platforms. Government incentives such as the “Piano Nazionale Transizione 4.0” support investment in digital infrastructure and innovation.

14.2 ESG and Sustainability

Environmental, Social, and Governance (ESG) criteria are gaining traction among investors and regulators. Companies are expected to disclose sustainability metrics, reduce carbon footprints, and align with EU taxonomy standards. Green financing and circular economy models are on the rise.

14.3 Regulatory Evolution

Italy continues to align its corporate and tax laws with EU directives. Upcoming changes include enhanced whistleblower protections, digital company registers, and simplified compliance for SMEs. The legal landscape is becoming more transparent and tech-enabled.

14.4 Market Outlook

Despite global uncertainty, Italy’s business climate shows resilience in sectors like renewable energy, agritech, luxury goods, and tourism. Foreign investment is expected to grow, especially in southern regions and innovation hubs. Entrepreneurs should watch for regional incentives and EU funding opportunities.

If you have any questions , feel free to contact us.

[custom_navigation]