Italy: Income Tax

L'Agenzia delle Entrate ha emesso la circolare n. 3 del 24 giugno 2026, fornendo importanti chiarimenti sull'applicazione della tassazione agevolata introdotta dalla Legge di Bilancio 2026. La circolare specifica quali incrementi retributivi e indennità beneficiano dell'imposta sostitutiva del 5% e del 15%, delineando i criteri di applicazione per diverse tipologie di compensi e situazioni lavorative.

The Italian Tax Authority has issued new guidance on tax benefits introduced by the 2026 Budget Law, addressing the treatment of salary increases from contract renewals and various work-related allowances. The circular clarifies which types of compensation qualify for preferential substitute tax rates and establishes important distinctions for different categories of workers and payment structures.

The Italian tax authorities have issued a significant ruling on pension taxation following EDF's nationalization by the French State. A French resident considering relocation to Italy questioned whether this change in ownership could reclassify their CNIEG pension from a social security benefit to a government pension, potentially shifting exclusive taxing rights to France. The authorities' response provides important insights for similar situations involving state-owned entities performing commercial activ

One of the questions I am asked regularly is how income from property held overseas is taxed in Italy. Many people wonder whether rental income is exempt from Italian tax because tax has already been paid abroad...

I want to talk about the subject of residency in Italy and the taxes that apply to you if you are considered resident. This is a subject that causes a lot of confusion, but the rules themselves are actually quite clear.

The majority of expats I meet who decide to relocate to Italy are either Northern European or from Anglo Saxon countries searching for some hot weather or wishing to sample the Mediterranean lifestyle. Whatever the motivations, it doesn’t really matter.

In recent years, the Italian legislature has adopted many legislative measures in the fiscal field aimed at making Italy more attractive and competitive...

With judgment No. 836/2023 published on 18 July 2023, the Italian Court of cassation ruled on the applicability of the foreign tax credit under Article 165...

Release of OICR units: new opportunity with aspects to be clarified