{"id":8684,"date":"2025-10-24T10:50:55","date_gmt":"2025-10-24T08:50:55","guid":{"rendered":"https:\/\/taxing.it\/?p=8684"},"modified":"2026-04-13T10:06:29","modified_gmt":"2026-04-13T08:06:29","slug":"tax-updates","status":"publish","type":"post","link":"https:\/\/taxing.it\/it\/tax-updates\/","title":{"rendered":"Tax Updates"},"content":{"rendered":"
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Italian 2026 Finance Law<\/h2>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Overview<\/h2>

Budget Law 2026 \u2014 Approved and Official
Summary of the fiscal measures contained in the 2026 Italian Budget Law<\/p>

The Italian Parliament has definitively approved the 2026 Budget Law. After the Chamber of Deputies\u2019 vote on 30 December, the President of the Republic promulgated the law the same day. It was published in the Official Gazette as Law No. 199 of 30 December 2025, entitled:
\u201cState Budget for the 2026 Financial Year and Multi\u2011Year Budget for 2026\u20132028.\u201d<\/p>

The article provides an overview of some of the tax measures included in the law.<\/p>

Key Fiscal Measures<\/h2>

1. Personal Income Tax (IRPEF) Reform<\/h3>

The second IRPEF bracket is reduced from 35% to 33%.<\/p>

For taxpayers earning over \u20ac200,000, certain tax deductions are reduced by \u20ac440, including:
19% deductible expenses (excluding medical) Political donations
Insurance premiums for natural disaster coverage<\/p>

2. Flat-tax\/HNWI\u201cnew-resident\u201d regime adjustment (for high net-worth individuals)<\/h3>

The special tax regime for \u201cnew residents\u201d<\/a> (people transferring residence to Italy who produce income abroad) \u2014 the lump-sum substitute regime \u2014 is proposed to be increased: the annual flat tax for these non-resident-to-Italy immigrants is increased from Euro 200,000 to 300,000 and from Euro 25,000 to Euro 50,000 for family members.<\/p>

3. Taxation of Contract Renewals, Productivity Bonuses & Allowances<\/h3>

For private\u2011sector employees:
5% substitute tax on wage increases in 2026 for employees earning \u2264 \u20ac33,000 in 2025.
1% substitute tax (down from 5%) on productivity bonuses and profit\u2011sharing for 2026\u20132027, with the annual limit raised from \u20ac3,000 to \u20ac5,000.
15% substitute tax on night work, holiday work, weekend work, and shift allowances (up to \u20ac1,500), for employees earning \u2264 \u20ac40,000 in 2025.
Workers may opt out and choose ordinary taxation.
50% exemption on dividends paid to employees under corporate share\u2011participation schemes (up to \u20ac1,500).<\/p>

4. Meal Vouchers<\/h3>

Non\u2011taxable limit for electronic meal vouchers increased from \u20ac8 to \u20ac10 per day.<\/p>

5. Agricultural Sector Measures<\/h3>

IRPEF exemptions for agricultural income extended through 2026:
100% exemption up to \u20ac10,000
50% exemption between \u20ac10,000 and \u20ac15,000
Applies only to individual farmers and agricultural entrepreneurs (IAP).<\/p>

6. Short\u2011Term Rentals<\/h3>

From 2026, income from three or more short\u2011term rental properties is presumed to be business income (previously five properties).<\/p>

7. Tourism & Hospitality Workers<\/h3>

A 15% tax\u2011free supplemental allowance for night, holiday, and overtime work from 1 January to 30 September 2026, for employees earning \u2264 \u20ac40,000 in 2025.<\/p>

8. Building Renovation & Energy Efficiency Deductions<\/h3>

2025 incentives extended through 2026:
36% or 50% deductions for renovations, energy savings, and seismic improvements
\u201cFurniture bonus\u201d confirmed (up to \u20ac5,000)<\/p>

9. Five\u2011per\u2011Thousand (5\u00d71000) Funding<\/h3>

Annual allocation increased from \u20ac525 million to \u20ac610 million starting in 2026.
9. Flat Tax Regime Access
Income threshold for employees wishing to access the flat\u2011rate regime remains at \u20ac35,000 for 2026.<\/p>

10. Crypto\u2011Asset Taxation<\/h3>

Electronic\u2011money tokens denominated in euros are excluded from the capital\u2011gains tax increase (26% \u2192 33%).
Conversion between euros and euro\u2011denominated tokens does not generate taxable gains\/losses.
Financial transaction tax (\u201cTobin tax\u201d) increases:
Shares: 0.2% \u2192 0.4%
High\u2011frequency trading: 0.02% \u2192 0.04%<\/p>

11. Favourable Asset Transfers to Shareholders<\/h3>

Reintroduction of the \u201cfacilitated asset assignment\u201d regime for non\u2011instrumental assets transferred to shareholders by 30 September 2026.
Substitute tax:
8% (or 10.5% for non\u2011operational companies)
Suspended\u2011tax reserves taxed at 13%<\/p>

12. VAT Rules for Failed to File Returns\u00a0<\/h3>

The Tax Agency may assess VAT based on:
E\u2011invoices issued\/received
Telemetric receipts (digital receipt data that shops, bars, restaurants, and other retailers send automatically via fiscal cash registers etc.)
Periodic VAT communication data
Taxpayers have 60 days to respond or pay.<\/p>

13. Horizontal Tax Offsetting<\/h3>

Threshold for blocking cross\u2011tax offsets reduced from \u20ac100,000 to \u20ac50,000.<\/p>

14. Plastic Tax & Sugar Tax<\/h3>

Both taxes postponed to 1 January 2027.<\/p>

15. Customs Fee on Small Imports<\/h3>

A \u20ac2 fee applies to non\u2011EU imports valued \u2264 \u20ac150.<\/p>

16. Fuel Excise Alignment<\/h3>

Excise duties on petrol and diesel harmonised at \u20ac672.90 per 1,000 litres.<\/p>

17. Complementary Pension Contributions<\/h3>

Annual deductible limit increased from \u20ac5,164.57 to \u20ac5,300 starting in 2026.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

Italian 2026 Finance Law Overview Budget Law 2026 \u2014 Approved and OfficialSummary of the fiscal measures contained in the 2026 Italian Budget Law The Italian Parliament has definitively approved the 2026 Budget Law. After the Chamber of Deputies\u2019 vote on 30 December, the President of the Republic promulgated the law the same day. It was […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,7,54,738],"tags":[],"class_list":["post-8684","post","type-post","status-publish","format-standard","hentry","category-technical-update","category-technical-resource","category-blog","category-updates"],"yoast_head":"\nTax Updates | Taxing.It<\/title>\n<meta name=\"description\" content=\"Italian 2026 Finance Law OverviewBudget Law 2026 \u2014 Approved and OfficialSummary of the fiscal measures contained in the 2026 Italian Budget LawThe Italian\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxing.it\/it\/tax-updates\/\" \/>\n<meta property=\"og:locale\" content=\"it_IT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax 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