Question 1

What is the Italian Regime Forfettario?

Accepted Answer

The Regime Forfettario is Italy's flat-rate tax regime for self-employed professionals and freelancers, introduced in 2015 and expanded in 2019. It applies a 15% flat substitute tax (imposta sostitutiva) on a deemed taxable base calculated as revenue multiplied by an ATECO-specific coefficient. New businesses meeting the conditions pay only 5% during their first 5 years.

Question 2

What is the revenue cap for Regime Forfettario in 2026?

Accepted Answer

Since 2023, the annual revenue cap is €85,000. If you exceed €85,000 but stay under €100,000, you remain in Forfettario for the current year and switch to ordinary regime the following year. Above €100,000, you exit immediately and ordinary IRPEF applies from that same year.

Question 3

How is the taxable income calculated?

Accepted Answer

Taxable income equals annual revenue multiplied by a coefficiente di redditività set per ATECO activity code. Professional services and IT/consulting use 78%, commerce and hospitality 40%, artisans 67%, food street vendors 54%. Actual business expenses are NOT deductible — the coefficient is a forfait deduction.

Question 4

Do I charge IVA (VAT) under Regime Forfettario?

Accepted Answer

No. Forfettario taxpayers do not charge IVA on invoices and cannot deduct IVA on purchases. This is a major advantage when invoicing private (B2C) clients, since your prices are effectively 22% cheaper than an ordinary VAT-charging competitor for the same final price to the consumer.

Question 5

How do INPS contributions work in Forfettario?

Accepted Answer

INPS is calculated on the taxable income (after coefficient), not on revenue. Gestione Separata professionals pay around 26.07% of taxable income. Artigiani and Commercianti pay roughly 24% on a minimum base of about €18,415, but can request a 35% reduction specifically reserved for Forfettario artisans and traders.

Question 6

When does the ordinary regime become more advantageous?

Accepted Answer

Ordinary IRPEF becomes competitive only when actual deductible expenses substantially exceed the forfait coefficient. For most professional services (78% coefficient), Forfettario stays cheaper up to and beyond the €85,000 cap. For commerce activities (40% coefficient) with low real margins, ordinary may match around €60,000–€80,000 if real expense ratio is below 60%.

Italy Regime Forfettario Calculator 2026 — 15% Flat-Rate Freelance Tax