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

Coming to live and Italy – the top tax mistakes

Vicenza

Tax in Italy Your liability to tax in Italy depends primarily (but not, by any means, only)  on your tax residence status.  If you are tax resident (read this article for an explanation of what this means) in Italy in any year – and you are either tax resident for a particular tax (calendar year) […]

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.  

Italian Real Estate Purchase Guide

The Italian tax regime applicable to residential real estate can seem confusing.  Real estate has always been an attractive source of income for governments around Europe,  and Italy is no exception.  As real estate is difficult to move about, it presents an easy target for the Exchequer.  The current Italian tax regime seeks to differentiate […]

Main Residence – Tax Relief on Purchase

Palladio Vicenza

You can save purchase tax (registration tax) on the purchase of Italian real estate if you elect to occupy as your main residence (in Italy) and actually occupy it as such for the five years following purchase. In order to occupy it as your main residence you need to get registered as resident with your […]

Rent to Buy: what it is and how it works

Roma

Do you want to buy a house but cannot find a bank to put up the finance you need. Are you concerned about making a commitment to buy but not sure about the timing? Italian law has a solution: the “Rent to Buy” scheme (affitto con riscatto). The scheme allows you to take immediate possession […]