Italy taxes in 2026: everything you need to know, in one page

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You are thinking about living, working or running a business in Italy, and you want the full picture before the details. This page gives you every main tax, the regimes for newcomers and the rules for moving in and out, with links to each in-depth guide.

Italy tax landscape in 2026: the key figures

Is this guide for you?

Read on if you…

• are considering a move to Italy as a remote employee, freelancer or founder;
• already live in Italy and want to see every tax you might face;
• have Italian income or assets while living elsewhere.

Probably not your case if you…

• need one precise answer, like crypto rates. Jump to the matching guide in the list below;
• are a large company looking at transfer pricing or group structuring.

How does the Italian tax system work?

Italy uses a residence-based, worldwide system. If you are resident, all your income is taxable in Italy, wherever it arises. Foreign tax already paid is credited, within limits. If you are not resident, Italy only taxes income from Italian sources, such as Italian property or work done in Italy.

Who is tax resident?

Since 2024, article 2 of the TUIR says you are resident if, for most of the year (183 days, or 184 in a leap year), any of these applies:

1. You are registered in an Italian municipality's population register (anagrafe).
2. Your domicile is in Italy, meaning the centre of your personal and family relationships – basically where your partner, kids and home are.
3. Your habitual residence (residenza) is in Italy.
4. You are physically present in Italy, counting part-days.

There is no split year. Pass the test and you are resident for the whole calendar year. The detail is in tax residency in Italy.

Who runs it?

The Agenzia delle Entrate collects most taxes. INPS collects social security. The Guardia di Finanza handles inspections. Regions and municipalities set surcharges and property tax rates within national limits.

When do you file and pay?

Employees usually file the simplified 730 return by 30 September. Others file the Redditi PF return by 31 October. The tax balance and the first advance are due by 30 June, the second advance by 30 November.

Which taxes will you actually pay?

Here's the catch. Italy has no general wealth tax, but IVAFE, IVIE and the stamp duty on investments act like a partial one for anyone with savings. Details are in specific taxes in Italy.

Investment rules have their own page: capital gains tax in Italy. Most tax credits are 19% of the expense, explained in personal tax deductions and benefits of Italy.

What special regimes exist for newcomers?

Italy is one of Europe's most generous countries for new arrivals, if you qualify.

• Impatriate regime: 50% of employment or freelance income exempt for five years, 60% with a minor child, capped at EUR 600,000. You need 3 years of prior non-residence, a high qualification, and 4 years' stay.
• Flat tax for new residents: a fixed yearly sum replaces Italian tax on all foreign income, for up to 15 years. EUR 200,000 for recent opt-ins.
• Retirees: 7% on all foreign income for 10 years in small southern towns.
• Researchers and professors: 90% of income exempt for 6 years or more.
• Forfettario: 15% (5% for new activities) on a notional profit for freelancers up to EUR 85,000 of revenue.

Honestly? For most remote professionals, the real choice is impatriate regime versus forfettario. The full comparison is in tax incentives for expats and digital nomads in Italy.

How do moving in and moving out work?

Moving in

Register with the municipality, get your codice fiscale, and plan your arrival date. Arrive after early July and you usually miss the 183-day test for that year. That can delay a regime's first year. The step-by-step plan is in practical guide to obtaining your tax residency in Italy.

Italy gives no step-up on arrival. Gains built up abroad are taxed in full when you sell as a resident.

Moving out

Register with AIRE, the registry of Italians abroad, if you are Italian. Then make sure your home, family and work really move. Italian citizens moving to black-list countries are presumed still resident. Italy has no exit tax on private shareholdings, only on businesses. See practical guide to ceasing your tax residency in Italy.

Treaties

Italy has around 100 double tax treaties. They decide who taxes what when two countries claim you. Check yours in international tax treaties of Italy.

What should you know about running a business in Italy?

You can work as a sole professional with a VAT number, form a partnership, or set up an SRL from EUR 1 of capital. Companies pay 24% IRES and 3.9% IRAP, and dividends are taxed at 26%. E-invoicing through the SdI system is mandatory for almost all VAT numbers.

Three points matter most for mobile founders:

1. Effective management. A company is resident where it is really run. A foreign company run from your Italian home can be taxed as Italian.
2. Deductible costs. Ordinary regimes deduct real costs; forfettario does not.
3. Compliance. Penalties start at 70% of unpaid tax, and serious cases become crimes.

Read legal forms of business in Italy, corporate income taxes in Italy, business expenses in Italy and tax fraud regulations of Italy.

Common mistakes (and what they cost)

• Arriving in Italy mid-year without a plan. The no-split-year rule taxes your worldwide income for the whole year, often double with your old country until a treaty fixes it.
• Forgetting quadro RW. Foreign accounts, brokers and crypto missing from RW cost 3% to 15% of their value per year.
• Picking a regime by headline rate. The impatriate regime, forfettario and flat tax exclude each other; the wrong choice can cost thousands a year.
• Running a foreign company from Italy. It can be taxed as Italian, with 120% penalties on the missing returns.
• Leaving Italy on paper only. If your family stays, you remain resident and taxed on worldwide income.

Frequently asked questions

What are the income tax rates in Italy in 2026?

IRPEF is 23% on income up to EUR 28,000, 33% from EUR 28,000 to EUR 50,000, and 43% above. Regional surcharges of 1.23% to 3.33% and municipal surcharges of up to 0.8% (0.9% in Rome) apply on top. Investment income is taxed separately, usually at a flat 26%.

When do I become tax resident in Italy?

When, for more than 183 days of the year, you are registered with an Italian municipality, have your domicile or habitual residence in Italy, or are physically present there. Domicile means the centre of your personal and family life. There is no split year: if you qualify, you are resident for the whole calendar year.

Does Italy tax worldwide income?

Yes, for residents. Italian tax residents pay IRPEF on income from every country, with a credit for foreign tax paid. Non-residents only pay on Italian-source income, such as Italian rents or work performed in Italy. Treaties can change the outcome where two countries both claim you as a resident.

Is Italy a good place for digital nomads tax-wise?

It can be. The impatriate regime exempts half of your work income for five years, and the forfettario taxes small freelancers at 15% or 5%. The digital nomad visa itself gives no tax break. The catch is the paperwork: foreign-asset reporting, holding taxes and strict residence tests. Plan before you arrive.

What is the corporate tax rate in Italy?

Companies pay IRES at 24% on profits and IRAP, a regional production tax, at 3.9% in most regions. Combined, that is about 27.9% on a typical profit. Dividends paid to resident individuals are then taxed at 26%. Partnerships are tax-transparent, so partners pay IRPEF on their share.

Does Italy have an exit tax for individuals?

No, not on private shareholdings or crypto. Once you are genuinely non-resident, later gains are generally outside Italian tax. Exit tax applies to businesses and companies moving abroad. Leaving early from the impatriate regime means repaying its benefit, and Italian citizens moving to black-list countries are presumed still resident.

Italy tax guides

• Tax residency in Italy – the 183-day test, domicile and the registry rule.
• Practical guide to obtaining your tax residency in Italy – your move-in plan, step by step.
• Practical guide to ceasing your tax residency in Italy – how to leave cleanly, AIRE included.
• Tax incentives for expats and digital nomads in Italy – impatriate regime, flat tax, retirees, forfettario.
• Capital gains tax in Italy – 26% on shares and funds, property rules, losses.
• Cryptocurrency taxes in Italy – the 2026 rate, taxable events and reporting.
• Personal tax deductions and benefits of Italy – 19% credits, family benefits and caps.
• Specific taxes in Italy – IVAFE, IVIE, IMU, VAT and inheritance tax.
• Legal forms of business in Italy – VAT number, forfettario, SRL or SPA.
• Corporate income taxes in Italy – IRES, IRAP and dividends.
• Business expenses in Italy – what freelancers and companies can deduct.
• International tax treaties of Italy – double tax treaties and tie-breakers.
• Tax fraud regulations of Italy – penalties, crime thresholds and voluntary correction.

Related guides

• Tax landscape overview of Portugal
• Tax landscape overview of Spain
• Your tax guide to Malta
• Tax incentives for expats and digital nomads in Italy
• Tax residency in Italy
• All country tax guides

Sources

• Agenzia delle Entrate – official portal
• Ministry of Economy and Finance – Dipartimento delle Finanze
• Normattiva – TUIR (Presidential Decree 917/1986) and Legislative Decree 209/2023
• Gazzetta Ufficiale – Budget Laws 2025 and 2026
• INPS – social security contributions
• OECD – Italy tax treaties and tax policy
• PwC Worldwide Tax Summaries – Italy

This guide is general information, not personalised tax advice. See how we research and review.