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Italy
Individuals Taxation

Overview

Italy levies a progressive income tax (IRPEF) on worldwide income for residents and Italian-source income for non-residents. The system includes national, regional, and municipal tax layers.

Special regimes apply to foreign retirees, high-net-worth individuals, and inbound workers, offering substantial tax incentives to attract international talent and wealth.

Italian Tax System for Individuals

Progressive IRPEF brackets: 23% up to €28,000, 35% from €28,001 to €50,000, 43% above €50,000.

Additional regional (1.23%–3.33%) and municipal (0.1%–0.9%) surcharges apply.

Non-dom regime offers €100,000 (or €200,000 for family members) flat tax on foreign income.

Inbound workers may enjoy 7% flat tax or 90% income exemption for up to 10 years.

Flat 7% tax regime for pensioners relocating to eligible southern municipalities.

Foreign tax credits apply to avoid double taxation under Italy’s treaty network.

Real estate income, capital gains, and dividends are separately taxed.

No wealth tax, but foreign assets must be reported (RW form).

Social security contributions are mandatory and coordinated via INPS.

Exit tax may apply when changing tax residency with significant unrealized capital gains.

Requirements and Procedures

Register with local municipality and obtain Italian tax code (codice fiscale).
Establish tax residency (≥183 days, anagrafe registration, or center of interests).
Determine eligibility for special regimes (non-dom, inbound, pensioner).
File annual tax return (730 or Redditi PF) by 30 September each year.
Advance tax payments due in June (40%) and November (60%).
File Form RW to report foreign assets over €15,000.
Declare foreign income and apply applicable tax cre
INPS registration and contributions for self-employed or freelancers.
Non-dom individuals must opt in and confirm annually.
Maintain records for audits, including foreign source documentation.

How Charfort can help you?

Assessing your Italian tax residency and obligations.

Filing your 730 or Redditi PF returns with optimal deductions.

Electing for non-dom or inbound tax regimes where eligible.

Foreign income structuring and treaty application analysis.

RW and RT reporting for offshore assets and investments.

Navigating the 7% flat tax for pensioners.

Audit support and pre-audit documentation review.

Tax planning for real estate, dividends, and capital gains.

Coordinating with INPS for social security compliance.

Exit tax planning and relocation advisory.

Frequently asked questions

Everything you need to know about the process.

What is the income tax rate in Italy?

23–43% progressive rates, plus regional and municipal surcharges.

Who qualifies as a tax resident in Italy?

Anyone spending ≥183 days in Italy or registered with the local anagrafe.

What is the non-dom regime?

Flat €100,000 tax on foreign income for new residents for up to 15 years.

Is there a special regime for retirees?

Yes, a 7% flat tax applies to foreign pensioners relocating to select southern towns.

What forms must be filed annually?

Form 730 or Redditi PF, and RW if foreign assets exceed €15,000.

Are foreign tax credits available?

Yes, via Italy’s tax treaties and unilateral relief.

Do I need to pay social security?

Yes, contributions via INPS are mandatory unless covered under another regime.

What deadlines should I remember?

Tax returns due by 30 September; advance payments in June and November.

Contact us today

Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.

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