Setting up and operating as a freelancer in Italy can be both rewarding and complex, especially for expats unfamiliar with the local tax landscape. This updated 2025 guide offers a practical, step-by-step overview—covering registration, choosing a tax regime, invoicing, filing taxes, and maximizing deductions, all tailored for international professionals and new Italian residents.
1. Registering as a Freelancer (Partita IVA)
- Partita IVA (VAT Number): Anyone regularly engaged in paid, self-employed or freelance activity in Italy must register for a Partita IVA (VAT number). Occasional or one-off work is typically exempt.
- Where to Register: Apply at the Italian Revenue Agency (Agenzia delle Entrate) using form AA9/12, choosing an appropriate ATECO code (the business activity classification) that matches your work.
- Additional Registration:
- INPS (Italian social security): Registration is mandatory for nearly all freelancers. Certain regulated professions (like lawyers, doctors, engineers) have their own pension funds.
- For non-regulated professions: Only Agenzia delle Entrate and INPS registration is required.
- Sole traders also need to register with the Chamber of Commerce (Camera di Commercio).
- What You Need: Prepare your passport or ID, Italian tax number (codice fiscale), and permesso di soggiorno (residency permit), if applicable.
2. Choosing the Right Tax Regime
The two main freelance tax regimes for individuals in Italy are:
Regime Forfettario (Flat-Rate Scheme)
- Flat tax: 5% for the first five years, then 15% afterwards.
- Applies to a fixed portion of turnover, determined by your ATECO code.
- Turnover ceiling: €85,000 per year; you may also have up to €35,000 of other (employment or pension) income.
- No VAT is charged on invoices (IVA esente).
- Cannot deduct actual business expenses from income; a lump-sum expense deduction is automatically applied. Some personal/family or social security deductions still apply.
- Simplified paperwork, fastest compliance path for most new freelancers and expats.
Ordinary Regime (Standard Accounting)
- Income tax is progressive: 23% on up to €28,000, 35% up to €50,000, 43% above.
- You charge VAT (usually 22%) on sales and deduct VAT on eligible purchases.
- You can deduct documented business expenses from your taxable income.
- Involves more detailed bookkeeping and filing requirements.
Choosing the best regime depends on your expected turnover, business expenses, and whether you qualify for forfettario. Many new expats prefer forfettario for its simplicity and tax savings but confirm annually that you remain eligible.
3. Keeping Records and Invoicing
Record-Keeping
- Even under forfettario, keep copies of all invoices sent and received, and document all income and payments.
- Expense records are critical if you're in the ordinary regime. Payments must be traceable (bank transfer, card); cash expenses generally are not deductible.
- All supporting tax records must be archived for at least five years.
Invoicing Requirements
- Forfettario invoices must include:
“Operazione effettuata ai sensi dell’art. 1, commi da 54 a 89, della Legge n. 190/2014 - Regime forfettario”, and note no VAT is charged. - For cross-border EU clients, include both VAT numbers if both parties are VAT-registered.
- The e-invoice (fattura elettronica) system is now available for all freelancers, regardless of invoice value, making compliance easier for remote work and digital services.
VAT Notes
- Forfettario: You do not charge or recover VAT; you cannot claim VAT credit on business expenses.
- Ordinary regime: You must apply VAT on your invoices, file annual and quarterly VAT returns, and keep detailed VAT records.
4. Filing Taxes and Staying Compliant
- Annual Tax Return: Submit the Modello Redditi PF (personal income tax return) by the specified deadline (typically June or July). If you have registered for VAT, the annual VAT return is due in April.
- Social Security Contributions:
- Register and pay to INPS (or to a professional order fund if applicable).
- New VAT holders benefit from a 50% reduction in social security for their first three years, reducing minimum annual contributions to roughly €2,200.
- Contributions are often paid in advance, based on your last tax return, with a balance adjustment later.
- Other Filings & Payments:
- For regulated professions, stay registered with your order (albo professionale).
- Sole traders must pay the Chamber of Commerce fee, typically €200/year for small turnover.
5. Deductions and Expense Tips
For Regime Forfettario
- You do not itemize deductions; all business costs are automatically calculated at a fixed percentage via the ATECO code.
- You can still claim certain deductions outside business expenses, such as social security payments and family deductions.
For Ordinary Regime
- You can deduct all documented, traceable business expenses—including work equipment, travel for business, office rent, professional services (commercialista), and certain representation costs (gifts for business must be fully traceable).
- Always keep digital backups and organize your invoices and receipts.
6. Tips for Expats and Best Practices
- Consider working with a commercialista (qualified tax accountant) for help with tax forms and compliance. For most expats, this simplifies filing and reduces risk of errors.
- If you’re moving to Italy, look into special expat schemes like the “lavoratori impatriati” program, which can reduce your taxable income for five years.
- Monitor annual limits if you receive additional employment or pension income, as this might affect your forfettario eligibility.
- Register your Partita IVA and INPS account as soon as you become self-employed, and calendar all annual tax deadlines to avoid fines.
- Store all tax documents and correspondence securely for at least five years in case of audit.
Important Caveats & Limitations
- Italian tax and business laws can change annually—always cross-check requirements or seek professional advice before making decisions.
- Visa or residence permit requirements are separate from tax obligations. Always check you have the correct immigration status to work as a freelancer in Italy.
- This guide doesn’t cover incorporation or company formation, which require different steps and obligations.
Start Filing with Confidence
Navigating freelance tax registration and compliance in Italy is much simpler with the right guidance. ItalianTaxes.com provides a reliable, technology-driven platform for expats and freelancers to register, file, and pay their Italian taxes—all online and fully compliant. Create your account today to experience streamlined tax filing that’s built for international users and tailored to the latest Italian tax rules.
