Italy: Tax Authorities

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 Authority has issued operational instructions clarifying the application of tax relief measures introduced by the 2026 Budget Law, addressing both salary increases from contract renewals and special work allowances. These guidelines detail which income components qualify for preferential tax treatment and establish specific conditions for employees to benefit from reduced taxation rates on certain employment-related payments.

Tax Residency is always one of those issues that raises its head in batches, from time to time. Residency determines where you may or may not be located for tax purposes. The notion that you can be resident in Italy but pay tax elsewhere is an outdated notion and one that should be forgotten.

I would like to bring up the subject of taxation on money transferred into Italy by Italian residents. Over the years, there has been confusion about whether Italy applies a withholding tax on incoming transfers from abroad.

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.

Such a principle is set forth by Italian law, and imposes that a foreigner can exercise one of his or her rights in Italy, only if and to the extent that his or her State of origin...

In response no. 114 issued on May 23, 2024, to a request for a ruling, the Italian tax authorities provided clarifications on the value to be assumed for tax purposes in Italy for capital gains...

Many countries have special tax regimes designed to attract qualified staff from abroad and we will be covering some of these regimes in a series of articles.