Regime forfettario
Also known as: forfettario, flat-rate regime
The regime forfettario is Italy's flat-rate tax scheme for sole traders (partita IVA) earning up to €85,000 a year. You pay one substitute tax — 15%, or 5% for the first five years of a genuinely new activity — on a fixed share of revenue set by your ATECO code, replacing IRPEF, its regional/municipal surcharges, and VAT.1
What this means for you
For most foreign freelancers it's the cheapest, simplest way to start: no VAT to charge or reclaim, light bookkeeping. But you can't deduct real costs, and crossing €85,000 ends it (immediately if you pass €100,000 mid-year).
Common questions
What is the regime forfettario in English?
It is Italy's flat-rate tax scheme for sole traders (partita IVA) earning up to €85,000 a year. A single substitute tax replaces IRPEF, its regional and municipal surcharges, and VAT.
How much tax do you pay under the regime forfettario?
One substitute tax of 15% — or 5% for the first five years of a genuinely new activity — charged on a fixed share of your revenue set by your ATECO coefficient, not on your actual profit.
Who is eligible for the regime forfettario?
Sole traders with revenue up to €85,000 a year who meet the conditions. Crossing €85,000 ends it the following year; passing €100,000 mid-year ends it immediately.
Can a foreigner use the regime forfettario?
Yes. For most foreign freelancers it is the cheapest, simplest way to start — no VAT to charge or reclaim and light bookkeeping — but you cannot deduct real business costs.
Related terms
Sources
Every figure on this page is grounded in primary sources — the same standard as the TaxCompass chat. This is sourced orientation, not tax advice.