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 Tax Residence – Interaction between Tax Rules and Registration with your Local Authority (Comune)

What Is the Anagrafe? The Anagrafe is Italy’s civil registry of the individuals  who have established  their residence (centre of vital interests and habitual abode(Anagrafe della popolazione residente), withing the jurisdiction of an Italian Comune (local municipality). It records: All residents (Italian citizens and foreign nationals) Their official address Family composition Vital statistics (birth, marriage, […]

Hosting family members in Italy

Reporting foreign visitors If you are intending to host a non EU national, including a relative they are in general allowed to stay in Italy for less than 90 days in any 180 day period, subject to specific immigration formalities for certain countries, the individual will not need any immigration papers, but needs to take […]

Wills and Succession Planning

We have teamed up with Avv. Carlo Bottino from Anglo Italian law to better service clients looking for advice on succession planning, drafting a will and reviewing the tax aspects.  Below is a series of FAQ’s we have produced, together with our observations, covering the most common questions that we are asked  and our suggested […]

Table of Interest Rates – Income Tax

The rates of interest on overdue tax is a matter of some complexity. The Italian Parliament has, over the years, proposed simplification but the relevant draft legislation has not so far been enacted. Numerous different rates apply to different kinds of tax in different circumstances.  The table below shows the base table of legal interest […]

Toward a New Italian Tax Regime for the Taxation of Cryptocurrencies

From 1 January 2023, if new rules in the draft Finance Law for 2023 are enacted, gains on the disposal of crypto currencies will be taxed as miscelaneous income (so reprted in section RL of the Italian tax retrun) as opposed to the current trewamtn where they are reproted, similar to gains on foreign currencies, […]

List of Municipalities in Seismic Areas

The following is a list of municipalities in areas of Italy qualifying for special assistance as a result of seismic events. This list shows ALL Muncipalities. If you are looking for municipalities that qualify you for the 7% special regime, you need to look up each municipality shown here in the ISTAT list  and see […]

Italian tax aspects of renting Italian real estate – for landlords

Short-Term Rentals Flat Tax We understand that the draft Italian FY 2026  Finance Law  contains a proposal to raise, from 21% to 26% the flat tax (cedolare secca) on short term lettings via rental platforms (e..g Airbnb).   If the law is approved in this sense, rentals through digital platforms such as Airbnb will be taxed […]