Italy
Southern Europe • UTC+2 • Europe/RomeItalian Personal Income Tax
Italy's tax system is progressive, with rates ranging from 23% to 43%. Residents are taxed on worldwide income, while non-residents are taxed only on Italian-source income.
Income Tax
23%–43%
Progressive rates
Corporate Tax
24%
Standard corporate tax rate
VAT / GST
22%
Standard VAT rate
Nomad Visa
Available
Digital Nomad Visa
Tax System Overview
Italy's tax system is progressive, taxing residents on worldwide income and non-residents on Italian-source income. It includes personal income tax, corporate tax, and VAT.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Italian-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Italy's progressive income tax bands based on annual taxable income in EUR (2025).
Tax Treaty
Double Taxation Agreements help reduce withholding taxes and avoid double taxation on cross-border income.
United States of America
Treaty ActiveThe Italy-US tax treaty prevents double taxation on income, reduces withholding taxes on dividends, interest, and royalties, and clarifies tax residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
United States of America
Agreement ActiveItaly and the US have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for US–Italy workers.
- Allows workers who split careers between the two countries to combine contribution periods.
- Applies to employees, self-employed, and certain government workers.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
24% standard rate, with potential reductions for small businesses
VAT Registration
Mandatory if annual turnover exceeds €85,000.
Freelancer Rules
Freelancers can opt for a flat-rate tax regime if revenue is below €65,000.
Crypto Policy
Cryptocurrency gains are taxed as financial income, subject to a 26% tax rate.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- Special tax regime for new residents with a flat tax option on foreign income.
- No wealth tax on foreign assets.
Filing Roadmap
Obtain Your Codice Fiscale
Apply for an Italian tax identification number (Codice Fiscale) at any local tax office or Italian consulate.
Register Your Tax Residency
If you have lived in Italy for 183+ days, register as a tax resident at the local tax office.
Gather Income Documents
Collect all income statements, including employment slips, rental receipts, and bank interest certificates.
File Your Tax Return Online
Submit your tax return via the Italian Revenue Agency's online portal by November 30.
Pay Any Tax Due
Pay any taxes owed by the deadline to avoid penalties. Payments can be made online or at authorized banks.