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

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 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 castale is then revalued by a […]

Table of Corporate Income Tax and IRAP Rates

Historical Italian Corporate Income Tax (IRES) and Regional Tax (IRAP) Rates Period IRES Rate (Standard) IRAP Rate (Standard) Notes Pre-2004 IRPEG (predecessor): 36-37% N/A IRPEG replaced by IRES in 2004 2004–2007 33% N/A (introduced later) Initial IRES rate 2008–2016 27.5% 4.25% (1998–2007)3.9% (from 2008/2009) IRAP standard rate reduced in 2008; higher for banks (e.g., 4.65-5.5%) […]

Table of VAT Rates

In Italy, Value Added Tax (IVA – Imposta sul Valore Aggiunto) applies to most goods and services. The standard rate is 22%, with reduced rates for specific categories to support essential goods, sectors like tourism, and social services. Current Italian VAT Rates (IVA) – as of December 2025 Rate Description / Main Applications Common Examples […]

RW Foreign Asset Reporting Codes

The table below contains the codes to be shown in Section RW of the annual tax return allocating any foreign asset to an individual category. Italian Descriptor Code English Description Conti Correnti E Depositi Esteri 1 Foreign Current And Deposit Accounts Partecipazioni Al Capitale O Al Patrimonio Di Società Non Residenti 2 Shares In The […]

Rates of Italian Withholding Taxes

Tax to be Withheld on Payments to Non-Residents Italy has an extensive series of rules requiring Italian tax resident businesses and professionals to make withholding of tax on certain payments of various types of income, both where the recipient is tax resident in Italy and non tax resident. Individuals acting in a private, non business, […]

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 […]

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 […]

Table of Main Registration Taxes in Italy

This is a (very) simplified table of the registration taxes due on certain documents.  The tax office will apply the tax according to the substance of the effect that the document has, not the form.