The regime forfettario, explained (2026)
Italy's regime forfettario is the flat-rate tax regime for individual partita IVA holders — one substitute tax instead of IRPEF, its surcharges and VAT. Here's who qualifies, the profitability coefficients, the rates, the INPS contributions and what you still have to do in 2026 — every point cited to the law.
What the forfettario regime is
The regime forfettario is Italy's simplified flat-rate tax regime for individuals — sole traders and professionals — who hold a partita IVA. It replaces personal income tax (IRPEF), its regional and municipal surcharges, the regional business tax (IRAP) and VAT with a single substitute tax (imposta sostitutiva) on a fixed share of your revenue.12
It's the default — "natural" — regime: if you meet the requirements you don't apply for it, you simply open (or already hold) a partita IVA and you're in it, signalling the choice on the registration form. You can also opt out for the ordinary regime if it suits you better.2
Who can use it: the 2026 requirements
You qualify if, in the prior year, you stayed inside every one of these limits:
- •Revenue (ricavi or compensi) no higher than €85,000 — and if you cross €100,000 mid-year, the regime ends immediately that same year.1
- •No more than €20,000 gross spent on employees and collaborators.1
- •Employee or assimilated income no higher than €30,000 (the cap was temporarily €35,000 for 2025) — this test is waived if that employment relationship has ended.1
- •No controlling interest in a partnership (società di persone) and no controlling, related stake in an SRL that carries on a similar activity.1
- •You don't invoice mostly (over 50%) a current employer — or one you worked for in the previous two years.1
- •You're resident in Italy, or resident in an EU/EEA state while earning at least 75% of your income in Italy.16
How the tax is calculated: coefficient × rate
The forfettario ignores your real costs. Instead, your taxable income is a fixed percentage of revenue — the coefficiente di redditività — set by your activity's ATECO code, not by what you actually spend. It ranges from 40% to 86%.13
| Activity group (ATECO) | Coefficient |
|---|---|
| Professional, scientific, technical, health, education & financial services | 78% |
| Other activities (incl. software & IT services) | 67% |
| Construction & real estate | 86% |
| Commercial intermediaries | 62% |
| Street trade — non-food goods | 54% |
| Wholesale & retail trade | 40% |
| Food & beverage manufacturing | 40% |
| Accommodation & food service | 40% |
On that coefficient base you pay a single substitute tax of 15%, cut to 5% for the first five years of a genuinely new activity that meets the start-up conditions.1
INPS contributions (not covered by the flat tax)
The substitute tax does not cover your pension contributions. Professionals without their own cassa pay INPS Gestione Separata — around 26% of the coefficient base; artisans and traders instead pay the Gestione Artigiani/Commercianti (fixed minimum contributions plus a percentage above a floor).41
Forfettario artisans and traders can elect a 35% reduction on those contributions. Whichever scheme applies, the INPS you pay is deductible from the taxable base.1
What it replaces — and what you still do
- •No VAT on your invoices and no input-VAT deduction — you invoice without IVA (with the forfettario wording), by electronic invoice.52
- •No ritenuta d'acconto (withholding) on your invoices, and in most cases you don't act as a withholding agent.2
- •No ISA (sector-reliability indices) and simplified bookkeeping.2
- •You still pay INPS and file the annual Redditi PF return, where the substitute tax is settled.4
Foreigners: can you use it?
Yes. The forfettario is open to non-Italians on exactly the same terms, once you're an Italian tax resident (or an EU/EEA resident earning 75%+ of your income in Italy). Nationality is not a criterion — the day count and the limits above are.61
What differs is access: non-EU citizens generally need a residence permit that allows self-employment (lavoro autonomo) before opening a partita IVA, while EU/EEA citizens register directly. The path depends on where you're from.7
When the forfettario stops being the best choice
Because it taxes a flat coefficient and ignores real costs, the forfettario loses its edge if your actual expenses are high — or once revenue nears and crosses €85,000. Then the ordinary regime (progressive IRPEF on real profit) or, for newly-arrived residents, the impatriati regime can come out ahead. It's worth modelling both before you commit.18
How to open a partita IVA in the forfettario
- •Get a codice fiscale — and, if you're non-EU, the residence permit that allows self-employment.7
- •Choose your ATECO code: it fixes your profitability coefficient, so it drives your tax.3
- •File the inizio attività (model AA9/12) with the Agenzia delle Entrate — online, by PEC or in person. Because the forfettario is a natural regime, you simply flag it.52
- •Register with INPS (Gestione Separata, or Artigiani/Commercianti plus the Camera di Commercio if you run a trade).4
Frequently asked questions
What is the income limit for the forfettario in 2026?
€85,000 of revenue in the prior year. If you cross €100,000 at any point in the year, the regime ends immediately that year; otherwise exceeding €85,000 moves you to the ordinary regime from the following year.
How much tax do you pay under the forfettario?
A single substitute tax of 5% for the first five years of a new activity, then 15% — applied to the coefficient share of your revenue (40%–86% by ATECO), not your full revenue. INPS contributions are separate.
Can a foreigner use the regime forfettario?
Yes, on the same terms as Italians once you're an Italian tax resident (or an EU/EEA resident with 75%+ of income in Italy). Non-EU citizens first need a residence permit allowing self-employment before opening a partita IVA.
Does the forfettario cover INPS contributions?
No. The flat tax is only the substitute income tax. Pension contributions are separate — Gestione Separata (around 26% of the base) for most professionals, or Artigiani/Commercianti for trades, where a 35% reduction can be elected.
Can you deduct expenses in the forfettario?
No. Real costs are ignored — taxable income is a fixed coefficient of revenue. That's exactly why the regime is unfavourable for high-cost businesses, where the ordinary regime may tax less.
Do you charge VAT in the forfettario?
No. Forfettario invoices carry no IVA and you can't deduct input VAT. You issue them as electronic invoices with the forfettario wording.
Keep exploring
Sources
- 1.Normattiva — L. 190/2014, art. 1 commi 54–89 e Allegato 4 (regime forfettario, coefficienti di redditività)
- 2.Agenzia delle Entrate — Regime forfetario: le regole
- 3.ISTAT — Struttura ATECO 2025 (IT/EN)
- 4.Normattiva — L. 335/1995, art. 2 (INPS Gestione Separata)
- 5.Normattiva — DPR 633/1972 (IVA), art. 35 (apertura partita IVA)
- 6.Normattiva — TUIR (DPR 917/1986), art. 2 (residenza fiscale)
- 7.Normattiva — D.Lgs. 286/1998 (Testo Unico Immigrazione), art. 26 (lavoro autonomo)
- 8.Normattiva — D.Lgs. 209/2023, art. 5 (regime impatriati)
Every figure on this page is grounded in primary sources — the same standard as the TaxCompass chat. This is sourced orientation, not tax advice.