Italian 2026 Finance Law – Key Tax Measures: Reduced Tax Rate for Middle Incomes | Flat-tax/HNWI“new-resident” regime adjustments (for high net-worth individuals) | Incentives / “flat tax” regimes for employment income| Continued incentives for investments and capital goods (businesses) | Tax-collection and “fiscal-relief” measures: debt-collection amortization, freeze for property-transfer taxes | Tax treatment of dividends, capital gains, and financial income | Sectors/Special Taxes: financial intermediaries, “windfall” taxes, bank levy
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VAT Invoice Codes

The table below summarises the main codes and descriptions to be used when issuing a VAT invoice (including an electronic invoice via SDI). The table is divided according to whether the invoice relates to a supply of goods or a supply of services (although the distinction can be a grey area and depends on the […]

Electronic Invoicing

Mandatory E-invoicing Electronic-invoicing is mandatory for almost all B2B (Business to Business) and B2C (Business to Consumer) transactions made by an Italian VAT registered business. The Italian system has been in force since 1 January 2019 (after it became compulsory for invoices to public administrations in 2014–2015). Every invoice must be created in the official […]

Supporting Documents For Your Italian Tax Return

Supporting Documents for Preparing an Italian Tax Return (Modello 730 / Modello Redditi) In an all Italian tax context, most taxpayers will receive, after the end of the tax year,  certification of reportable income, tax, and, where relevant, social security contributions, paid to them in the tax year.  In these cases the tax return is […]

The X Per Mille Options

Choosing Where Part of Your Tax Goes The Italian tax return allows you to opt to allocate of your overall  IRPEF liability to a variety of institutors.  Note these are not “extra” taxes. You are simply telling the Italian Exchequer how to spend a percentage of the taxes you already owe.  These options are referred […]

List of Italy’s Double Tax Treaties (DTA’s – Income Tax)

Contracting Country Stipulation Date Came Into Effect Links to Treaty Text Albania Signature : Tirana 12.12.1994Ratification : L. 05.21.1998, n.175 12/21/1999 Albania – PDF in Italian and English Algeria Signature : Algiers 02.03.1991Ratification : Law 12.14.1994, n.711 06/30/1995 Algeria – PDF in Italian Algeria – PDF in French Argentina Signature : Rome 11.15.1979Ratification : Law […]

List of Personal Deductible Expenses and Tax Credits in the Italian Tax Return

Background This post deals with deductions and tax credits which are applied after the calculation of taxable income and which are potentially available to all taxpayers. For a listing of .tax deductions and tax credits available generally see this post.    General Rules An Italian resident taxpayer has the right to certain deductions and claim […]

TARI – Italian Refuse Disposal Tax

TARI: Italy’s Waste Collection Tax  TARI is Italy’s waste management tax (Tassa sui Rifiuti). It applies to anyone who owns or uses a property in Italy, whether resident or non‑resident. Unlike IMU, which is a property‑ownership tax, TARI is a service fee for rubbish collection and disposal. Below is a simple overview of how TARI […]

IMU – Local Real Estate Ownership Tax

IMU – Tax on Ownership of Italian Real Estate IMU is Italy’s municipal property tax on real estate, introduced in 2012 to replace the previous ICI tax. It applies to owners (or holders of registrable legal rights like usufruct or a right of habitation) of buildings, buildable land, and agricultural land. The tax funds local […]

Rates of IMU

IMU is Italy’s municipal property tax on Italian located real estate.  IMU  is managed and collected by local municipalities (Comuni). For more information on the tax, reliefs and exemptions read here. How IMU Is Calculated The calculation starts with property’s cadastral income (rendita catastale), a government-assigned value based on size, location, and type. The rendita […]