Italian personal income tax (IRPEF)
IRPEF is the national tax on an individual's taxable income. For 2026, Law 199/2025 sets three progressive brackets: 23% up to €28,000, 33% on the portion from €28,001 to €50,000, and 43% above €50,000. These percentages apply to successive portions, not to the entire income once a threshold is crossed. Regional and municipal addizionali are calculated separately, so the national brackets are only the starting point for a relocation budget. Deductions, tax credits, income category and days worked can change the final liability. Residents generally report worldwide income, while a non-resident reports Italian-source income, subject to treaty analysis. A freelance worker should also distinguish income tax from mandatory social contributions. The forfettario regime is a separate option: qualifying activities use a statutory profitability coefficient and a 15% substitute tax, or 5% for the first five tax periods of a genuinely new activity, with the €85,000 prior-year receipts ceiling.
Corporate tax (IRES + IRAP)
An Italian-resident SRL is generally taxed on worldwide taxable income with IRES at 24%. IRAP is a separate regional tax at the standard 3.9% rate, calculated on the statutory net production value rather than simply on accounting profit. Regional adjustments and the company's cost structure matter, so adding 24% and 3.9% is only a first orientation. The site's corporate-tax guide places the effective combined burden for ordinary service SRLs in the 27-31% range. A foreign company can become exposed to Italian IRES and IRAP through a permanent establishment, such as a fixed place of business or a dependent agent habitually concluding contracts. Without a permanent establishment, Italian-source payments may instead involve withholding tax and treaty relief. Deductibility is governed by detailed rules for salaries, rent, professional fees, depreciation, interest and entertainment, and IRAP must not be treated as an automatic tax on every freelancer.
Wealth taxes on foreign assets: IVIE and IVAFE
Tax residents must map foreign assets every year rather than assuming that an overseas account is outside the Italian system. IVIE applies to foreign real estate at the ordinary 1.06% rate, using the statutory valuation hierarchy and taking ownership share, holding period and eligible foreign-tax credits into account. IVAFE ordinarily applies at 0.2% to foreign financial products and rises to 0.4% for products held in specified privileged-tax jurisdictions. Foreign current and savings accounts follow a different rule: the fixed amount is €34.20 per account, adjusted for ownership and holding period, with an exemption where the relevant average annual balance does not exceed €5,000. That €5,000 test is not a general exemption for investment portfolios. Quadro RW is the reporting framework for foreign assets and must be completed even where the resulting tax is small or nil. The asset guide and tax-rates guide both stress classification before calculating.
The €300,000 substitute tax for new residents (2026)
Article 24-bis TUIR offers a special regime for a person transferring tax residence to Italy from 1 January 2026 after at least nine of the previous ten tax periods outside Italy. Law 199/2025 sets the annual substitute tax at €300,000 for the principal taxpayer and €50,000 for each qualifying family member included in the option. The election covers qualifying foreign-source income, while Italian-source income remains under ordinary rules. It can run for no more than fifteen tax periods and is not an automatic renewal. Country-by-country exclusions are possible, but excluded income returns to ordinary treatment. The regime does not arise merely because a person holds a visa or buys a home: tax residence and immigration status are separate questions. Sourcing must be documented for each salary, dividend, gain, trust distribution or property item. A professional review should compare the fixed annual charge with ordinary IRPEF, local surcharges, foreign-asset taxes and treaty consequences before the first return.
Inheritance and gift tax
Italian succession planning distinguishes the relationship between donor or deceased and beneficiary, and it also distinguishes the location of assets from the residence of the parties. The inheritance guide describes rates of 4% for direct-line relatives with a €1,000,000 exemption, 6% for siblings with a €100,000 exemption, and 8% for other beneficiaries. The 2026 reform separates the thresholds for gifts and inheritances, so an exemption used in one channel should not automatically be treated as consumed in the other. For a non-resident, Italian inheritance tax is generally limited to assets located in Italy; a resident's worldwide estate requires a broader classification and treaty review. Real estate also brings registration, cadastral and mortgage taxes, while foreign assets can interact with the HNWI regime or other reporting rules. Before transferring shares, property or cash, assemble ownership documents, family relationships and valuations. The applicable result depends on the instrument, timing and territorial connection, not on a single headline percentage.
When a foreigner becomes Italian tax resident
Tax residence is a fact-based status, not a label chosen on a visa application. The residency guide describes three alternative connections: registration in the municipal Anagrafe, domicile or centre of vital interests, and habitual abode. Physical presence for the majority of the tax period is commonly expressed through the 183-day rule, but spending fewer than 183 days does not automatically settle the question when family, home and economic interests are centred in Italy. Any day with physical presence can matter, and travel records are useful evidence. A new resident should obtain a codice fiscale, arrange the appropriate permit if non-EU, register the address with the Comune and keep contracts, utility bills, bank statements and travel logs. Once resident, worldwide reporting normally follows, including foreign-asset monitoring where applicable. Treaty tie-breakers may alter the result when two countries claim residence. Plan the departure from the former country before arrival, because a dual-residence dispute can affect every source of income.
VAT and cross-border sales
VAT is separate from income and corporate tax, and the obligation depends on the transaction rather than the seller's nationality. A foreign company supplying most B2B services to an Italian VAT-registered customer can generally invoice without Italian VAT under reverse charge, leaving the buyer to account for it. Registration becomes relevant when an Italian SRL or branch is incorporated, goods are held in an Italian warehouse, imports occur, or qualifying B2C distance sales exceed the combined EU threshold of €10,000 unless OSS is used. Italy's standard VAT rate is 22%, with reduced 10%, 5% and 4% categories listed in the VAT guide. OSS permits a qualifying business without an Italian establishment or warehouse to report cross-border B2C sales through one quarterly return. Input VAT is deductible only for taxable business activity, with restrictions such as the 40% vehicle limit and pro-rata rules for mixed supplies. VAT filings remain due even when the net balance is zero.
Returns, payments and evidence
Italian tax compliance is a calendar and record-keeping exercise, not just a calculation. The tax-rates guide warns that return and payment dates depend on the taxpayer, form and year, so a foreign resident should use the current Agenzia delle Entrate and INPS schedules instead of copying an old deadline. An individual resident typically reports through Modello Redditi PF, while an SRL uses Modello REDDITI SC; the corporate guide identifies 30 November as the 2026 corporate-return date for the 2025 fiscal year and 16 June and 30 November as the two 2026 IRES and IRAP advance-payment dates. Keep invoices, contracts, payroll records, foreign statements, travel logs and evidence supporting every special-regime condition. Digital credentials such as SPID or CIE can open Revenue Agency services, but the available route depends on the taxpayer and form. A commercialista can coordinate F24 payments, withholding, VAT, foreign reporting and treaty claims, yet the taxpayer remains responsible for preserving source documents and checking that each filing matches the correct tax year.
