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 […]

Italian Tax on Foreign Pensions

Vicenza

If your pension is liable to tax in Italy (which will be the general position absent exemption under a DTA) then you need to follow Italian rules on the timing of a receipt for tax purposes. 

Estimating your Italian tax liabilities (Employees)

Under current Italian tax residence rules you are considered as either tax resident or not for any full tax (calendar) year – there is no split year concept, except in some limited circumstances – and you will deemed resident in Italy under the Italian statutory residence test if you are physically present in Italy, registered […]

Doubling of HNWI Flat Tax from Euro 100k to 200k

Italian Government Press Release The Press Release reports that the Italian Council of Ministers, in a meeting on 7 August 2024,  approved the text of a Decree-Law  introducing a series of urgent tax and other measures. A Decree-Law is an executive measure of the Council of Ministers but subject to Parliamentary approval within 60 days […]

Italian Statutory Tax Residence Test For Individuals: 2024 changes

The Legislative Decree on International Taxation, No. 209 of 27 December 2023 introduced some important modifications to the Italian rules on the tax residence of individuals and the  statutory test of tax residence (STTR). The STTR contained in art. 2, para.  2 of the Italian Tax Code (Decree of the President of the Republic of […]

Request an Italian Fiscal Code Number

ILS tax Code Service

We have teamed up with ILF Law Firm  to offer the service of obtaining your Italian Fiscal Code Number (codice fiscale).   Read on for more details. Obtain your Italian Fiscal Code Are you a foreigner requiring an Italian fiscal code? Look no further than ILF Law Firm! We provide a seamless and efficient service […]

The Italian Fiscal Code Number

ILF

The Fiscal Code Number (Codice Fiscale, Italian taxpayers’ identification number, TIN, tax code, call it what you like) is a unique taxpayer code that identifies all individuals in their dealings with the Italian authoritiesÂ