Trends and Predictions
14.1 Digital Transformation Italian businesses are increasingly adopting digital tools, including e-invoicing, cloud accounting, and remote collaboration platforms. Government incentives such as the “Piano Nazionale Transizione 4.0” support investment in digital infrastructure and innovation. 14.2 ESG and Sustainability Environmental, Social, and Governance (ESG) criteria are gaining traction among investors and regulators. Companies are expected to […]
Italian Source Income – Definition
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 […]
Coming to Live in Italy – the Top Tax Mistakes
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) […]
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 […]
Special Tax Regime for University Professors and Researchers moving to Italy
A 6-18 year preferential tax regime granted to professors and researchers who transfer their tax residence to Italy in order to work from Italian soil
Reform of the Italian Impatriates Regime, Tax Residence Test and Incentives for Transfers of Businesses to Italy.
Reform of the Impatriates Regime The Italian Council of Ministers has approved approved the final draft text of the law modifying the Impatriates Regime. See this article for the latest information Italian Council of Ministers Press release n. 54 of 16 October 2023Reform of the Italian Impatriates Regime, Tax Residence Test and incentive for […]
Italian Residence – What is the Anagrafe
The Italian Register of Resident Population The Anagrafe is Italy’s civil registry of the individuals who have established their residence (centre of vital interests and habitual abode(Anagrafe della popolazione residente), withing the jurisdiction of an Italian Comune (local municipality). It records: All residents (Italian citizens and foreign nationals) Their official address Family composition Vital statistics […]
Toward a New Italian Tax Regime for the Taxation of Cryptocurrencies
From 1 January 2023, if new rules in the draft Finance Law for 2023 are enacted, gains on the disposal of crypto currencies will be taxed as miscelaneous income (so reprted in section RL of the Italian tax retrun) as opposed to the current trewamtn where they are reproted, similar to gains on foreign currencies, […]
The Old Impatriates Regime – 70%/90% Tax break to attract “human capital” to Italy – pre 2024 Rules
The Italian Council of Ministers in a Press Release no 54 of 16 October 2023 proposed a significant reform of the Italian Impatriates Regime. The reform was enacted by Legislative Decree Dec. 27, 2023, No. 209 which was published in the Official Gazette (OG General Series No. 301 of 28-12-2023) and is stated to enter into force […]
“Impatriates” Tax Relief on earned/self employment income
5 Year Extension after initial 5 year period The “Decreto Bilancio 2021” (Law 178/2020), has extended the possibility of taking advantage of the 5 year extension of the tax regime for “impatriated” workers available to individuals who transferred their residence to Italy before 30 April 2019 and who, as at 31 December 2019, were already […]
Decree Law “ Cura Italia” – Covid-19 – Special Measures To Protect Health and Support the Economy.
At a meeting of the Italian Council of Ministers of 16 March 2020 (press release no. 37/2020), the Prime Minister, the Minister of Labour and Social Policies (Nunzia Catalfo), and the Minister of Economy and Finance (Roberto Gualtieri) set out the principle measures contained in a Law Decree (Decreto-Legge 17 marzo 2020, n. 18 “Cura […]
Payments on account for small businesses
The Italian Tax Agency has recently published (in Resolution no. 93/E of November 12, 2019) clarification on the remodeling of payments on account for taxpayers small businesses subject to the new rules and taxpayers on the lump sum flat tax regime (regime forfettaria) following the issue of Decree no. 124/2019. That decree changed as from […]
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 […]
ISA (Summary Reliability Indices) – What are they?
With the establishment of the “Indici sintetici di affidabilità” – ISA’s or Summary Reliability Indices, the Italian Tax Agency aims to “facilitate the compliance of tax obligations and encourage the spontaneous emergence of taxable income.” These indices form part of a wider initiative for Italian taxpayers carrying on business activities, arts or professions, that aims, […]
VAT refunds – Deadline is 30 September 2019
EU Directive 2008/9/EU (implemented in Italy by Legislative Decree no. 18/2010) allows VAT registered businesses that incur costs in countries that are members of the European Union (and Switzerland, Norway, Israel and the Principality of Monaco, thanks to reciprocal agreements) to request refund of VAT paid abroad on purchases of products and services. Most purchases […]
The Double Whammy
What is the “Double Whammy” in Italian tax? The “double whammy” is what hits certain individuals who have recently moved to Italy and new businesses in the second year after start-up. No tax in your first year You pay no tax in your first year after the move but the tax due for that first […]
Italy Tax Guide
Overview This is a very general guide and only intended to give some basic background information. It should not be seen as a substitute for specific advice. It focusses on the taxation of individuals and does not deal in any detail with the taxation of income from business activities (see here for more information). Tax […]
Flat Tax for pensioners coming to live in the South of Italy – 10 years at 7%
April 2026 update The population threshold for eligible municipalities is increased from 20,000 to 30,000 residents. Article 26 of Law No. 34 of March 11, 2026—the SME Law—amends Article 24-ter of the Italian Tax Code by expanding the scope of eligible territories to Comuni (municipal authorities). This amendment opens the 7% Regime scheme to medium-sized […]
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 of […]
Historical Rates of Italian Income Tax
These are the personal income tax rates that apply before 1 January 2024.