Italian 2026 Finance Bill – Key Tax Measures: Support for Middle and Low Incomes | Revision of IRPEF tax brackets | Abolition of reduced 21% rate on short term lettings | 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

Italian Inheritance and Gift Tax

Italian Inheritance & Gift Tax: Key Rules (2025 Update) Tax Rates by Beneficiary Relationship Spouse and direct descendants (children, grandchildren): 4% with a €1 million exemption per beneficiary. Siblings: 6% with a €100,000 exemption. Other relatives up to the fourth degree: 6% with no exemption. Unrelated individuals: 8% with no exemption. See this article for […]

Do I Need a Will?

Wills in Italy Starting Point The first step toward answering this question is getting: your details – including your nationality, current place of residence, and expected place of residence when you pass; as accurate a listing as possible of all of your assets, the place in which they are located, the current value, the purchase […]

RW Foreign Asset Reporting Codes

The table below contains the codes to be shown in Section RW of the annual tax return allocating any foreign asset to an individual category. Italian Descriptor Code English Description Conti Correnti E Depositi Esteri 1 Foreign Current And Deposit Accounts Partecipazioni Al Capitale O Al Patrimonio Di SocietĂ  Non Residenti 2 Shares In The […]

Italy – Withholding Taxes

Tax to be Withheld on Payments to Non-Residents Italy has an extensive series of rules requiring Italian tax resident businesses and professionals to make withholding of tax on certain payments of various types of income, both where the recipient is tax resident in Italy and non tax resident. Individuals acting in a private, non business, […]

Tax Updates

Italian 2026 Draft Finance Law A draft of the Italian 2026 Budget law has been published and a summary of the main terms published on Ministry of Finance web page: https://www.mef.gov.it/focus/Principali-misure-della-legge-di-bilancio-2025/ The main tax measures as described on the Ministry web site,  are summarised below. The Draft Bill is now proceeding with the Parliamentary debate […]

Italian Forced Heirship Rules

Italian Forced Heirship Rules (Successione Legittima) Italian forced heirship, governed by the Civil Code (Articles 536–564), restricts the freedom for an individual to decide where their assets should go on death.  The rules work by reserving a portion (quota legittima) for “forced heirs” (the “legittimari” – spouse, children, or ascendants if there are no children). […]

UK Inheritance Tax Changes

New UK Domicile Rules The UK government is in the course of making some significant, and complex, reforms to the taxation of non  UK domiciled individuals. The changes impact UK Inheritance tax liabilities for people living outside the UK . Under previous rules if you had a UK domicile (and had not lost it) there […]