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

More info: Taxing.it Updates

Tax for freelance teachers

Starting a new job as a freelance teacher? The school might recommend that you get registered for VAT under the flat-tax regime (regime forfettario). Nothing wrong with that – simplified accounting formalities, no need to add VAT onto invoices etc.

But have a word with us before you do. You might be exempt tax under a double tax treaty or entitled to a 50% exemption under the regime for new arrivals in Italy. Both of these are for a limited number of years. Also, if for example you are working part time, you might be under the threshold for paying tax and social security. The regime forfettario is not always the best fit.

Should you require any assistance with your personal or business tax, please reach out to our experts

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