Summary of the Italian Flat-Rate Regime (Regime forfettario) for 2026
This document details the key aspects of the Italian “Regime Forfettario” (flat-rate regime) as of 2026, offering a simplified tax system for VAT-registered professionals and small entrepreneurs. Hear’s a breakdown of the details:
Key Features & Limits:
* Simplicity: The regime offers a simplified tax structure.
* Revenue limit: The revenue limit for remaining in the regime is 85,000 euros.
* Immediate Exit: Exceeding 100,000 euros in revenue results in immediate exit from the regime.
* Gradual Exit (85,000-100,000): If revenue exceeds 85,000 euros, the exit from the flat-rate regime will occur in the following fiscal year.
* Employee Income Threshold: Individuals with income from employment (or similar) can access the regime if their income is up to 35,000 euros. This threshold is confirmed for both 2025 and 2026.
Taxation:
* Standard rate: The standard flat tax rate is 15%, replacing IRPEF, regional, and municipal surcharges.
* Reduced Rate (New Activities): A 5% reduced rate applies for the first five years of business activity. This remains valid for 2026.
Eligibility for the 5% Rate (New Activities):
* No Prior Activity: No business, professional, or artistic activities have been conducted in the three years prior to opening a VAT number (including associated or family businesses).
* not a Continuation: The new activity must not be a simple continuation of previous employment or self-employment (except for mandatory professional practice requirements).
* Business Acquisition: if acquiring an existing business, the previous entity’s revenue must not have exceeded the flat-rate regime’s limit.
5% Rate Timeline:
* Applicability: The 5% rate applies for five tax periods (e.g., 2026-2030 for businesses starting in 2026).
* Automatic Switch: After five years, the standard 15% rate automatically applies.
* Existing Businesses: Businesses that started in previous years continue to benefit from the 5% rate until their five-year period expires (e.g., those starting in 2021 will see the 5% rate end in 2025/Tax Return 2026).
In essence, the flat-rate regime remains a viable option for small businesses and freelancers in Italy, offering simplified taxation and potential tax savings, notably for new ventures.