Giovanni Emmi is a Chartered Accountant and Statutory Auditor focused on startups, innovative SMEs and expats in Italy.
Chartered Accountant, Statutory Auditor (Dottore Commercialista)
Opening a Partita IVA (Italian VAT number) is the essential first step for any foreign entrepreneur, freelancer, or business owner planning to operate in Italy. Whether you are an EU citizen, a non-EU resident, or a digital nomad, understanding the Italian tax system is crucial for legal compliance and financial optimization.
The Partita IVA is your unique Italian tax identification number for business activities. Unlike the codice fiscale (personal tax code, similar to a Social Security number), which everyone needs for interactions with Italian authorities, the Partita IVA specifically identifies you as a business operator. You must first obtain a codice fiscale, then apply for a Partita IVA when you start business activities.
For foreigners, obtaining a Partita IVA is legally required if you intend to invoice clients in Italy, operate as a sole proprietor (impresa individuale), or establish a company. Operating without one can result in penalties ranging from EUR 5,000 to EUR 50,000.
EU Citizens have the most straightforward path. You can apply regardless of residence, though having an Italian address simplifies the process. Under EU freedom of establishment principles, you are treated similarly to Italian citizens.
Non-EU Citizens with Italian Residence who hold a permesso di soggiorno (residence permit) are eligible under the same conditions as Italian residents. Your residence permit serves as primary identification.
Non-EU Citizens Without Residence can open a Partita IVA but need a fiscal representative (rappresentante fiscale) — an Italian resident or company authorized to act on your behalf with tax authorities.
Digital Nomads and Remote Workers holding Italy's digital nomad visa (introduced in 2024) can open a Partita IVA to invoice foreign employers or clients. The visa requires proving sufficient income (approximately EUR 27,000 annually), health insurance, and remote work arrangements. For full details on this pathway, see our digital nomad visa guide.
For EU Citizens:
For Non-EU Citizens with Residence Permit:
For Non-EU Citizens Without Residence:
Obtain your codice fiscale — available at any Agenzia delle Entrate office or online (EU citizens can use EIDAS login).
Choose your business structure. Your choice significantly impacts tax obligations:
Register your business at the Registro delle Imprese (Business Register) through the Camera di Commercio.
Apply for Partita IVA online via Agenzia delle Entrate (using SPID, CIE, or CNS), in person, or through a commercialista (accountant). The application requires form AA9/11 (individuals) or AA7/10 (companies), with your ATECO business activity code.
Choose your tax regime — the most consequential decision for your Italian business.
The flat-rate regime remains the most popular choice for freelancers and small entrepreneurs. In 2026, it applies to businesses with revenues up to EUR 85,000 annually.
Key features include a single flat tax between 5% and 15%. The 5% rate applies to new business activities for the first five years, provided the applicant has not carried out a professional, artistic, or entrepreneurial activity in the preceding three years. The standard 15% rate applies thereafter or to existing activities switching to the regime. The applicable coefficient varies by ATECO code, which determines the taxable base as a percentage of revenue.
Requirements: annual revenue not exceeding EUR 85,000, staff expenses (employees and collaborators) not exceeding EUR 20,000 per year, and cash-basis accounting.
Mandatory for businesses exceeding EUR 85,000 in revenues, or available voluntarily. It offers complete flexibility but requires more complex administration.
This regime applies standard VAT (22%) on invoices, allows VAT recovery on business purchases, requires full double-entry bookkeeping, and involves IRES at 24% plus IRAP at a standard rate of 3.9%.
| Feature | Forfettario | Ordinario |
|---|---|---|
| Revenue ceiling | EUR 85,000 | No limit |
| Tax rate | 5-15% flat | IRPEF 23-43% or IRES 24% |
| VAT on invoices | No | Yes (22%) |
| VAT recovery | No | Yes |
| Accounting | Simplified | Double-entry |
| IRAP | No | Yes (3.9% standard) |
| INPS contributions | Full (26.07%) | Full (varies) |
The Regime Impatriati offers 50% tax exemption on self-employment income for up to 5 years (extendable to 10 in some regions) for foreign entrepreneurs who transfer tax residence to Italy, provided they were not Italian tax residents for at least 3 years before the move. For a broader overview of available incentives, see our tax incentives guide for foreign companies.
| Item | Cost |
|---|---|
| Codice Fiscale | Free |
| Partita IVA Registration | Free |
| Business Registration (Camera di Commercio) | EUR 50-200 |
| Notary (for SRL/SRLS) | EUR 1,000-3,000 |
| Commercialista (first year) | EUR 1,500-4,000 |
| Item | Cost |
|---|---|
| Camera di Commercio (annual) | EUR 50-150 |
| Commercialista | EUR 1,500-4,000 |
| Social Security (INPS) — freelance | EUR 4,000-8,000+ |
| Accounting software | EUR 200-600 |
Freelancers registered under the INPS Gestione Separata pay 26.07% on net income if they do not belong to another cassa (professional pension fund). This is a significant cost that must be factored into your budgeting from the start. Quarterly payments are due in April, July, October, and January. For a detailed breakdown of Italian social security obligations, consult our INPS guide for foreign employers.
Flat-Rate Regime: Flat tax 5-15% of revenue plus INPS contributions; total burden typically 15-25% of revenue.
Ordinary Regime: IRPEF at 23% (up to EUR 28,000), 35% (EUR 28,001-50,000), 43% (above EUR 50,000) for sole proprietors, or IRES at 24% for companies; plus IRAP at 3.9%, VAT at 22%, and INPS. Total burden: 30-50% depending on profitability.
Working without a Partita IVA triggers severe penalties. The Agenzia delle Entrate monitors digital invoices through the SDI (Sistema Di Interscambio), and missing invoices generate automatic alerts. Choosing the wrong tax regime is equally costly — exceeding EUR 85,000 in revenue under the forfettario regime forces a mid-year switch to the ordinary regime, causing cash flow disruption. INPS contributions are mandatory; ignoring them results in penalties, interest, and potential inability to renew your Partita IVA.
How long does it take to open a Partita IVA?
The registration itself is typically completed within one to two business days when applying online through the Agenzia delle Entrate portal. However, the overall process — including obtaining your codice fiscale, gathering documentation, and potentially registering with the Camera di Commercio — can take two to four weeks. Working with a commercialista often accelerates the process, as they can handle submissions electronically and ensure all documentation is correct on first submission.
Can I open a Partita IVA without living in Italy?
Yes, non-residents can obtain a Partita IVA, but the process requires appointing a fiscal representative (rappresentante fiscale) who is resident in Italy. This representative receives official correspondence from tax authorities and ensures ongoing compliance. While this adds cost (typically EUR 500-2,000 annually), many foreign entrepreneurs operate successfully through this arrangement, particularly those serving Italian clients while based abroad.
What happens if my revenue exceeds the forfettario limit?
If your revenue surpasses EUR 85,000 in a calendar year, you are automatically transitioned to the ordinary regime from January 1 of the following year, giving you time to prepare for the increased compliance requirements. You will need to start charging VAT at 22%, maintain double-entry accounts, and pay IRAP. Planning for this transition in advance — ideally when your revenue approaches EUR 70,000 — allows you to adjust pricing and accounting practices without disruption.
Choosing the right tax regime at the outset is one of the most impactful decisions you will make as a foreign entrepreneur in Italy. The forfettario regime offers simplicity and lower effective tax rates, making it ideal for freelancers and consultants with revenues below EUR 85,000. However, it does not allow VAT recovery, which can be a disadvantage if you have significant business expenses involving VAT-registered suppliers. Consider your expected revenue trajectory carefully: if rapid growth is likely, factor the eventual transition to the ordinary regime into your business plan from day one.
Beyond regime selection, invest in professional advice from the start. A qualified commercialista who understands cross-border tax issues can help you avoid costly mistakes — from incorrect ATECO code selection to missed INPS payment deadlines. The cost of professional assistance (EUR 1,500-4,000 annually) is modest compared to the penalties for non-compliance. At YourBusinessInItaly, we recommend scheduling an initial consultation before you submit any paperwork, so your entire business structure is optimized from the beginning rather than retroactively corrected.
