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

Taxes on Second Homes in Italy

A Second Home in Italy If you have bought a house in Italy, but do not intend to live in it as your habitual abode and register as resident with the Anagrafe (register of resident population maintained by the relevant local authority or “Comune”), it will be considered a second home and not an “abitazione […]

The CU – what is it?

CU 2021

The Italian Tax Agency has published the CU 2023 (Certificazione Unica) model form with the relevant instructions. The CU 2023, is a fundamental tax document required by pensioners, employees and the self-employed who are in receipt of income from an Italian employer, pension provider or who have Italian business clients. In general Italian businesses are […]

Tax Penalties and the Ravvedimento Operoso

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, or who have underpaid tax, to pay the tax late, on their own […]

Stock options – the timing of the tax benefit

The Italian Tax Agency responding to a request for an official interpretation on the tax treatment of options (no. 23 of 5 February 2020) has set out its view of the moment in which stock options become taxable in the hands of employees working in Italy. This particular stock option plan  saw the grant of […]

Do I need to file an Italian Tax Return?

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The answer is most probably yes as the reader will desume from reading the instructions from the Italian tax return (these are from the 2023 return). The rules are complex and there are many exceptions and derogations. The rules can be summarised as follows, but with the caveat that one needs to check, starting from […]

Short Term Rentals – Italian Government proposes new restrictions

Italy’s centre left administration proposes to introduces limitations for those who rent rooms, holiday homes or apartments for short periods An amendment to the “Milleproroghe Decree” (one thousand extensions), presented by the “Democratic Party” to the Italian Chamber of Deputies, proposes a squeeze for those who rent tourist houses, or rooms  on sites such as […]

Tax changes for paper and electronic meal vouchers

  The Italian 2020 Finance Law has made some changes to the tax rules applicable to “Ticket Restaurant” (luncheon vouchers or meal tickets). These vouchers are commonly used by Italian businesses to assist employees traditionally predominantly to cover the cost of the mid-day meal. In recent years many supermarkets have also started accepting vouchers in […]