How much you pay in Italy depends on how you earn, so here are all three pictures: an employment contract, self-employment and running your own company. Real headline rates, verified July 2026.
As an employee
Income tax: Progressive 23-43% (+ regional and municipal ~1.5-3%). Social contributions: ~9-10% employee.
The impatriate regime halves taxable employment income (60% off with kids) up to €600k for 5 years. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a freelancer or sole trader
Income tax: Regime forfettario: 15% flat, and just 5% for the first 5 years, on coefficient-reduced turnover up to €85k. Social contributions: INPS ~26% (gestione separata) on the same reduced base.
The forfettario is one of Europe's best small-freelancer deals while you stay under the ceiling. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a company owner
IRES 24% + IRAP ~3.9%. Dividends 26%.
IRAP applies to most companies on a broader base than profit. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
Two rules that apply everywhere
Tax residence usually follows your life, not your paperwork: spend 183+ days in Italy (or keep your centre of vital interests there) and you generally owe taxes there regardless of visa or company setup.
Special regimes and treaty rules can change these numbers dramatically in both directions. This page is educational information, not tax advice: before you commit to a structure, have a licensed Italy tax advisor confirm the current rules for your specific case.