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

IMU – Local Real Estate Ownership Tax

IMU – Tax on Ownership of Italian Real Estate IMU is Italy’s municipal property tax on real estate, introduced in 2012 to replace the previous ICI tax. It applies to owners (or holders of registrable legal rights like usufruct or a right of habitation) of buildings, buildable land, and agricultural land. The tax funds local […]

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 […]

Italian Business Structures: Overview

This blog post is intended to provide a high level overview of the types of business structures available to investors in a business to be carried on in Italy and applies primarily to the situation where the investors are  individuals  – separate and different considerations may apply where the investor is a corporate body.  It […]

Italian Source Income – Definition

Italy map

The Importance of Identifying Italian Source Income The Italian tax Code contains a specific definition of Italian source income – or rather a list of types of income that are deemed under the Italian Tax Code to have an Italian source. If you are tax resident in Italy for any tax year (under the test […]

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 […]

Italy enacts new Digital Nomad Work Visa

The Digital Nomad Visa On 4 April 2024 a Ministerial Decree issued by the Italian Interior Minister  was published in the Italian Official Gazette.  Effective 5 April 2024, the Decree implements the Digital Nomad Visa and Stay Permit envisaged by a 2022 Law amending the Italian Immigration Code and introducing the  Digital Nomad Visa for […]

Impatriates Regime 2024

The 2024 Impatriates Regime for Individuals Legislative Decree no. 209 of 27 December 2023  was published in the Official Gazette (OG General Series No. 301 of 28-12-2023) and is stated to enter into force from 1 January 2024.  The Decree, an executive measure, was approved by the Italian Council of Ministers pursuant to authority granted […]