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.
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.
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 bracket | Tax rate |
|---|---|
| Up to €28,000 | 23% |
| From €28,001 to €50,000 | 35% |
| Above €50,001 | 43% |
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: 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.
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.
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Marie-Laure D.
Thanks to the Aller en Italie team, I was able to benefit from the 7% flat tax regime for my pension. Significant savings and zero stress throughout the process!
Thomas B.
The Italian Flat Tax allowed me to considerably optimise my tax situation. The team supported me every step of the way — I highly recommend them.
Sophie et Marc R.
We had no idea how IMU and TARI worked. After a one-hour consultation, everything was clear. Flawless service and a very responsive team.
Pierre M.
Thanks to the impatriate tax regime, I save 50% on income tax. Without Aller en Italie's help, I would never have known this scheme existed.
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.
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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.