Skip to main content

English–Italian experts · 500+

4.9/5 Trustpilot (opens in new tab)
(opens in new tab)
Relocation
Taxation

Les Impôts en Italie

Complete guide to the Italian tax system for foreigners looking to relocate or invest in Italy. IRPEF, property tax, VAT, special tax regimes: everything you need to know.

Consult an expert
Our webinars
Les impôts en Italie - guide fiscal
23%
Minimum IRPEF rate
For income up to €28,000
0,86%
IMU on secondary residence
Standard property tax rate
22%
Standard VAT rate
Standard Italian VAT rate

Présentation Générale du Système Fiscal Italien

Le système fiscal italien, géré par l'Agenzia delle Entrate (l'équivalent de la Direction Générale des Finances Publiques), repose sur plusieurs types d'impôts directs et indirects. Comprendre ce système est essentiel pour tout francophone souhaitant s'installer, travailler ou investir en Italie.

En Italie, les principaux impôts sont : l'IRPEF (impôt sur le revenu des personnes physiques), l'IRES (impôt sur les sociétés), l'IVA (TVA), l'IMU (taxe foncière) et la TARI (taxe sur les ordures ménagères).

Tax residency in Italy is a key factor: if you reside there for more than 183 days per year, you are considered a tax resident and taxed on your worldwide income.

En savoir plus sur la fiscalité italienne

Overview of the Italian tax system

Main Taxes in Italy

An overview of the taxes and levies you will be subject to as an expatriate living in Italy

IRPEF – Income Tax

Income tax in Italy (IRPEF) is progressive, with rates ranging from 23% to 43%. It applies to salaries, rental income, pensions, and self-employment income.

IMU – Property Tax

The Imposta Municipale Unica (IMU) is payable by property owners. Primary residences are exempt. The standard rate is 0.86% of the cadastral value.

TARI – Waste Collection Tax

The TARI funds waste collection and disposal. The amount varies according to the size of the dwelling and the number of occupants. It is payable by the tenant or owner-occupier.

IVA – Italian VAT

Italian VAT (IVA) applies to most goods and services. The standard rate is 22%, with reduced rates of 10% (food, hospitality) and 4% (essential goods).

Bollo Auto – Vehicle Tax

The regional vehicle tax (Bollo Auto) is the Italian equivalent of a road tax disc. The amount depends on the vehicle's power output (in kW) and the region. It is payable annually.

Canone RAI – Broadcast Licence Fee

The Canone RAI is the Italian public broadcasting licence fee, amounting to approximately €90 per year. Since 2016, it has been automatically added to household electricity bills.

Income Tax in Italy (IRPEF): a detailed overview

The IRPEF (Imposta sul Reddito delle Persone Fisiche) is the most significant personal income tax in Italy. It is calculated on an annual basis and declared via form 730 (for employees) or form Redditi PF (for self-employed individuals and liberal professions).

IRPEF tax brackets 2024–2025

Income bracketTax rate
Up to €28,00023%
From €28,001 to €50,00035%
Above €50,00143%

Residential occupation tax in Italy

Unlike some other countries, Italy does not have a traditional residential occupation tax as such. The main tax linked to the occupation of a property was the TASI (tax on indivisible services), which was abolished and merged into the IMU from 2020 onwards. Residents therefore primarily pay the IMU and the TARI.

Property tax (IMU)

The IMU is due annually by owners of real estate in Italy, with the exception of the primary residence (unless it is classified as a luxury property under categories A/1, A/8, or A/9). The tax base is calculated using the revalued cadastral value, multiplied by a coefficient based on the cadastral category.

IMU calculation example: For a flat in category A/2 with a cadastral value of €50,000, the taxable base is calculated as follows: 50,000 × 1.05 × 160 = 8,400,000 centesimi, i.e. €84,000 × 0.86% = approximately €722 per year.

Moving to Italy and taxation

Moving to Italy: Understanding Taxation

When you relocate to Italy, your tax situation changes fundamentally. As an Italian tax resident, you are taxed on your worldwide income, whether it originates in Italy or abroad.

The Franco-Italian tax treaty of 1989 prevents double taxation. Depending on your income and personal situation, you will pay tax either in France or in Italy — never in both countries.

Italy also offers advantageous tax regimes designed to attract foreign workers and retirees: the Flat Tax at €100,000 for new residents, the inbound workers regime with a 50% tax exemption, and the special retiree regime at 7% in municipalities in southern Italy.

The Flat Tax in ItalyRetirement in Italy

Favourable Tax Regimes for Foreigners

Italy offers several special tax regimes designed to attract foreign nationals and new residents

The Flat Tax – €100,000 lump sum

This regime allows new Italian tax residents (who have not been resident in Italy for 9 of the last 10 years) to pay a lump-sum tax of €100,000 on all their foreign income, regardless of its amount. Ideal for very high earners.

Impatriate Workers Regime

Employees and self-employed individuals relocating to Italy for work benefit from a 50% exemption on their employment income for 5 years (70% in southern regions). Requirements: must not have been resident in Italy during the previous 3 years.

Special Retiree Regime – 7%

Foreign retirees receiving a pension from a foreign source may benefit from a flat rate of 7% on all their foreign income for 10 years. This regime is reserved for municipalities with fewer than 20,000 inhabitants in southern Italy.

The Tax Identification Number (Codice Fiscale)

The codice fiscale is the tax identification number required for any administrative process in Italy: opening a bank account, signing a contract, purchasing property, or registering with the social security system. It is free of charge and can be obtained from the consulate or the Agenzia delle Entrate.

Personalised service

A dedicated concierge service by your side

Our Italy-based team supports you through every step of your tax journey: income tax filing, obtaining your tax identification number, tax optimisation, and relocation guidance. Don't face the Italian tax system alone!

Certified expert advisors

More than 1,000 internationals supported

Book a free appointmentExplore our tax webinars

Steps to Buying a Property in Italy: Tax Implications

Buying property in Italy involves several taxes and duties that are essential to understand before proceeding.

Registration Tax

  • 2% of the cadastral value for a primary residence (prima casa)
  • 9% for a secondary residence or rental investment
  • Minimum €1,000 in all cases

VAT on New-Build Properties

  • 4% for a primary residence (new-build prima casa)
  • 10% for other new-build properties
  • 22% for luxury properties (categories A/1, A/8, A/9)

Notary Fees

Notary fees in Italy typically range between 1% and 2% of the purchase price. A notary (notaio) is mandatory for any property sale deed in Italy.

After the Purchase: Recurring Taxes

Once you become an owner, you will be subject to IMU (annual property tax) if the property is not your primary residence, and to TARI (waste collection tax) as an occupant.

Expert tip: Before any purchase, consult a tax specialist with expertise in Italian-international tax law to optimise your situation and avoid unexpected costs.

View the steps to buying a property in Italy

Ready to relocate to Italy with complete peace of mind on tax matters?

Our experts will guide you through every step of your tax journey in Italy. Book a free consultation.

Italian Taxation

Questions fréquentes sur les impôts en Italie

Do you have questions about your tax situation in Italy? Find answers to the most frequently asked questions from foreigners relocating to Italy.

What is the difference between IMU and TARI?
IMU (Imposta Municipale Unica) is the property tax payable by property owners, calculated on the cadastral value. TARI (Tassa sui Rifiuti) is the waste collection tax, payable by the occupants of a dwelling (whether owner or tenant). These two taxes are independent and cumulative for an owner-occupier.
How are foreign retirees taxed when they move to Italy?
Under the France-Italy tax treaty, pensions paid by French public bodies (civil servants) remain taxable in France. Private-sector pensions, on the other hand, are taxable in Italy. Private-sector retirees may benefit from the special 7% flat-rate scheme available in certain municipalities in southern Italy.
Do I need to declare my foreign income if I am an Italian tax resident?
Yes, as an Italian tax resident, you must declare all your worldwide income in Italy. The France-Italy tax treaty prevents double taxation: depending on the type of income, a tax credit or an exemption applies. It is strongly advisable to consult a specialist tax adviser.
What is the Italian Flat Tax and who can benefit from it?
The Italian Flat Tax allows new tax residents to pay a fixed annual tax of €100,000 on all their foreign-source income, regardless of the amount. To be eligible, you must not have been an Italian tax resident for at least 9 of the previous 10 years. This scheme is particularly advantageous for individuals with high foreign income.
How do I obtain a tax identification number (codice fiscale) in Italy?
The codice fiscale is issued free of charge by the Italian consulate in your country of residence, or directly from the Agenzia delle Entrate in Italy. It is calculated from your surname, first name, date and place of birth. You can also calculate it online, but the official version must be issued by the relevant authority.
What is the VAT rate in Italy on property purchases?
For the purchase of a new property from a developer, VAT applies at 4% for a primary residence, 10% for other new dwellings, and 22% for luxury properties. For purchases of existing properties between private individuals, a registration tax (imposta di registro) of 9% generally applies, reduced to 2% for a primary residence.