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

2016 Italian Tax Update

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Ravvedimento Operoso – voluntary settlement of tax paid late.

The Ravvedimento Operoso Procedure derives from the Italian word which can be literally translated as “redemption” or “penitence”.   It is, however, in this context not a religious concept, but simply a procedure that allows taxpayers who have missed a deadline for payment to pay tax late with a smaller penalty compared to the rather stiff penalty […]

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Tax Optimisation for Investors General Italian and International Tax Advice Corporate and Business Acquistion Real Estate Tax Support Business Due Diligence Audit of Tax Tax dispute, mediation and litigation support Social security and pension planning Setting Up in Business    Tax Check Up Notary and Escrow Support Services Downsizing and Country Exit Tax Support Transfer […]

What is an apostille?

An “apostille” is a form to be applied to documents for use in countries that are party to the 1961 Hague Convention.  The convention is designed to rationalise procedures for the recognition and validation of legal documents executed in one signatory country and to be used in another signatory country.  The apostille certifies that the […]

Who we are

Over the years the Italian government and authorities have been working hard to consolidate and simplify the Italian tax system. However, like may tax systems in sophisticated modern States, the system is complex. This is a result of an organic growth of the rules, continued intervention aimed at providing tax breaks and reliefs, targeting tax-avoidance […]

UK Italy Double Tax Treaty – Income Taxes

The UK/Italy Convention for the Avoidance of Double Taxation of Income (or Double Tax Treaty) was signed at Pallanza on 21 October 1988. It entered into force on 31 December 1990. It came into effect in the United Kingdom from 1 January 1991 for petroleum revenue tax, from 1 April 1991 for corporation tax and […]

Second payment on account

By 30 November of each year, Italian taxpayers must make payment of the second payment on account (acconto) of their tax liability for the current year. The first payment is due earlier in the year at the same time as the tax due on income reported in the annual tax return for income received during […]

Tax credit for employment income

Italy has no personal relief nor (any longer) a no-tax zone.  This means that you start paying income (at 23% – see the marginal rates here) of the first euro of income.  However Italy has an intricate system of tax credits (described as “deduzioni” – deductions from taxable income or “detrazioni” deductions from tax due). […]