Self-Employed Tax in Italy

Italian residents who work as freelancers, consultants, or other self-employed professionals (lavoratori autonomi) must open a partita IVA (VAT number) and choose a tax regime. Two main regimes exist: the regime forfettario (flat-rate scheme) and the ordinary IRPEF regime. Alongside income tax, most self-employed workers pay social contributions to INPS Gestione Separata. This page summarises the rules as verified against Agenzia delle Entrate and INPS guidance for the 2025 tax year. For the country-level tax picture see the Italy country overview.

What is the regime forfettario flat-rate scheme and who qualifies?

The regime forfettario is a substitute-tax scheme introduced by Law 190/2014 (Articles 54-89) and expanded by the 2023 Budget Law (Law 197/2022). It replaces IRPEF, IRAP, regional and municipal surcharges, and VAT with a single flat tax applied to a deemed profit figure. The headline rate is 15%; new entrants who did not carry on substantially the same activity as an employee or self-employed worker in the prior three years pay a reduced rate of 5% for the first five consecutive tax years.

The revenue ceiling is EUR 85,000 per year (raised from EUR 65,000 from 1 January 2023). A trader who exceeds EUR 85,000 but stays below EUR 100,000 completes the year under the forfettario and exits to the ordinary IRPEF regime from the following year. A trader whose revenue crosses EUR 100,000 in any single year exits the forfettario immediately and owes ordinary IRPEF on the entire year's income, with VAT due on amounts above the ceiling.

Deemedprofit equals gross revenue multiplied by a profitability coefficient fixed by the taxpayer's ATECO economic-activity code (Annex 2 to Law 145/2018). Compulsory INPS social contributions paid during the year are then subtracted before the 15% (or 5%) rate is applied. Traders in the forfettario do not charge VAT on invoices and are exempt from VAT returns, IRAP, and the electronic-invoicing obligation for most transactions (B2C).

Key disqualifying conditions include: staff or contractor costs above EUR 20,000 in the prior year; shareholding of more than 25% in a company carrying on a substantially identical activity; and the employment-income limit described in a dedicated section below.

What profitability coefficients apply by sector?

The table below shows the macro-categories from Annex 2 to Law 145/2018 that determine the taxable base. Each category maps to one or more ATECO code ranges.

For example, a software developer (ATECO 62.01) earns EUR 70,000. Deemed profit is EUR 70,000 x 67% = EUR 46,900, minus, say, EUR 10,000 of INPS contributions paid = EUR 36,900 taxable. At 15% that is EUR 5,535 in income tax. Under the ordinary regime with the same deductible expenses and contributions, IRPEF alone would approach EUR 10,000-12,000 before regional surcharges.

What IRPEF rates apply under the ordinary regime?

Self-employed workers whose revenue exceeds EUR 85,000, or who choose to opt out of the forfettario, are taxed under the standard progressive IRPEF scale. The 2026 Budget Law (Law 207/2024, in force from 1 January 2025 for the 2025 tax year) reduced the second bracket from 35% to 33%:

• 23% on taxable income up to EUR 28,000
• 33% on taxable income from EUR 28,001 to EUR 50,000
• 43% on taxable income above EUR 50,000

On top of national IRPEF, residents pay a regional surcharge (addizionale regionale) of 1.23% to 3.33% depending on the region of residence, and a municipal surcharge (addizionale comunale) of 0% to 0.9% depending on the municipality. Lazio and Piemonte residents face the highest regional rates on top brackets; Lombardy and Veneto residents pay 1.73%.

Under the ordinary regime, self-employed workers may deduct actual business expenses (professional subscriptions, equipment, software, office costs, continuing education) rather than relying on the fixed coefficient. They also pay VAT at the standard 22% rate (or reduced rates) on invoices and file quarterly VAT returns. IRAP was abolished for individual lavoratori autonomi from 1 January 2022 by Law 234/2021 Article 1, paragraph 8, so it no longer applies to sole practitioners.

Self-employed workers earning under EUR 50,000 from their professional activity may claim an earned-income tax credit (detrazioni per lavoro autonomo) under Article 13 TUIR reducing gross IRPEF by up to EUR 1,955, phasing out proportionally above that threshold.

What does the EUR 35,000 employment-income limit mean for the forfettario?

Self-employed workers who are also employees (or pensioners) can only use the forfettario if their employment or pension income in the prior tax year did not exceed EUR 35,000. This threshold was raised from EUR 30,000 by the 2025 Budget Law and is confirmed at EUR 35,000 for 2025 and 2026 under Agenzia delle Entrate guidance.

The employment-income test looks at gross remuneration taxable in Italy in the preceding year, excluding the self-employment income itself. If the prior-year employment income exceeded EUR 35,000, the worker cannot apply the forfettario for the current year, even if their self-employment revenue is well below EUR 85,000. An exception applies if the employment relationship that generated the high income ceased entirely during that prior year; in that case the limit does not disqualify the worker.

This rule is significant for professionals transitioning from employment to freelancing, civil servants with side consulting income, and academics with supplementary consulting fees. A commercialista can model whether the timing of employment contract termination affects forfettario eligibility.

How do INPS social contributions work for self-employed?

Self-employed professionals who are not registered with a professional-order pension fund (cassa di previdenza) pay social contributions to INPS Gestione Separata, the separate social-security scheme for autonomous workers. For 2025, the rate for partita IVA holders enrolled exclusively in the Gestione Separata is 26.07% on net self-employment income, up to an annual contribution ceiling of EUR 120,607.

The contribution splits between the self-employed worker and their clients: the worker may add one-third (approximately 8.69 percentage points) as a separate line on the invoice to the client, while the worker is directly liable for the remaining two-thirds (approximately 17.38 percentage points). Both portions are paid via Modello F24 by the worker, with clients reimbursing their share. Contributions are paid in two instalments aligned with the IRPEF acconto schedule (see filing section below).

For regulated professions with an albo (register) -- lawyers (Cassa Forense), engineers and architects (Inarcassa), doctors (ENPAM), accountants (CNPADC), notaries (Cassa del Notariato), and others -- professionals pay into their profession-specific cassa di previdenza instead of INPS Gestione Separata. Cassa rates vary by fund, typically 14% to 20% of self-employment income, with fund-specific minimum-contribution floors. Cassa contributions are deductible from IRPEF taxable income under Article 10 TUIR.

Self-employed workers under the forfettario receive a 35% reduction on the INPS contribution base under Article 1, paragraph 77 of Law 190/2014, meaning their social contributions are calculated on 65% of their revenue (after applying the profitability coefficient). This lowers near-term social charges but also reduces future pension accrual.

What are the filing deadlines and payment schedule?

Self-employed individuals file the Modello Redditi Persone Fisiche (Redditi PF), not the simplified Modello 730. The Redditi PF covers income from self-employment, investments, and rental activity. Pre-filled versions become available in May via the Agenzia delle Entrate online portal.

Key dates for 2025 income (filed in 2026):

• Pre-filled Redditi PF available: from 20 May 2026 (view) and 27 May 2026 (submit)
• Filing deadline: 31 October 2026 (or 30 November for non-residents filing by registered post)
• First acconto (advance payment): by 30 June 2026 -- 40% of prior year's tax liability, paid via Modello F24
• Second acconto: by 30 November 2026 -- 60% of prior year's liability (moved to 1 December if 30 November falls on a Sunday)
• Saldo (balance): paid together with the first acconto by 30 June (or 30 July with a 0.4% surcharge)

First-year self-employed workers pay no acconti since there is no prior-year liability. From the second year onward, the acconto cycle applies. Payments are made via the electronic Modello F24 form, which consolidates income tax, social contributions, and VAT obligations into a single remittance. Intermediaries such as a commercialista or a CAF (Centro di Assistenza Fiscale) can file and pay on the taxpayer's behalf.

Late filing within 90 days of the deadline is subject to a reduced penalty under the ravvedimento operoso (voluntary correction) procedure. Filing more than 90 days late means the return is treated as omitted, carrying more significant penalties.

All figures above are verified against Agenzia delle Entrate and INPS official guidance for the 2025 tax year. Rules change annually with each Budget Law. Engage a commercialista (Italian chartered accountant) to determine which regime applies to your specific circumstances and to handle electronic filing and F24 payments on your behalf.