The Regime Forfettario – Flat Rate Tax Regime for Freelance Businesses
Introduction A special tax scheme (Regime Forfettario) offers a flat rate of tax on gross income for taxpayers looking to get themselves registered for VAT in Italy and carry on a self-employed business or profession. The various schemes for small taxpayers (the Regime dei Minimi/Regime Forfettario) have seen a number of changes over the years and […]
RW, IVAFE and IVIE – 2017 Slides
Below are the slides of the Presentation to Democrats Abroad on 26 June 2017 covering tax reporting requirements. The rules require individuals who are tax resident in Italy to disclose investments in real estate and financial assets that they hold outside Italy. There are also taxes due on the capital value of these assets and […]
Italian tax regime to encourage high net worth individuals to move to Italy
Italian 2026 Draft Finance Law The Italian Ministry of Finance web site: https://www.mef.gov.it/export/sites/MEF/documenti-pubblicazioni/doc-finanza-pubblica/doc/DOCUMENTO-PROGRAMMATICO-DI-BILANCIO-2026.pdf and the web site of the Italian Senate https://www.senato.it/service/PDF/PDFServer/BGT/1477486.pdf report the issue of a draft of the Italian Finance Act for 2026. The Draft Bill is now proceeding with the Parliamentary debate and approval process, during which it may be amended, before […]
Foreign Asset Reporting, Section RW, IVIE & IVAFE – Wealth Tax on Foreign Property
Increase in IVIE and IVAFE Starting from FY 2024, the rate of IVIE, the tax on the value of foreign (non Italian) real estate located abroad, will increase from 0.76% to 1.06%. This increase applies generally to all real estate situated outside Italy by a Italian tax resident. IVAFE, the tax on the value […]
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 […]
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 […]
Historical Rates of Italian Income Tax
These are the personal income tax rates that apply after 1 January 2024. For applicable rates before that date please click ….
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). […]
List of deductible expenses and tax credits in the Italian tax return
General Rules An Italian resident taxpayer has the right to certain deductions and claim a tax deduction or tax credit for certain expenses and charges incurred in the relevant tax return. Some, but not all, of these deductions/credits may be claimed by non-residents with taxable income in Italy. If the income tax due is less […]