Italian Tax Glossary
Common Italian tax terms and concepts explained in plain English for expats, non-residents, and foreign nationals.
A
Agenzia delle Entrate
The Agenzia delle Entrate is Italy's tax authority — the equivalent of the IRS or HMRC. It handles tax collection, codice fiscale issuance, audits, and refunds.
Identification & RegistrationAIRE (Anagrafe degli Italiani Residenti all'Estero)
AIRE is the Italian registry for citizens living abroad. Learn who must register, what it means for your tax status, and why AIRE registration doesn't automatically make you a non-resident.
C
CAF (Centro di Assistenza Fiscale)
A CAF is a subsidized tax assistance center where Italians can file simple tax returns at little to no cost. Learn what they offer, who runs them, and their limitations.
Tax TypesCedolare Secca
Cedolare secca is Italy's optional flat tax on residential rental income — replacing progressive IRPEF rates. Learn the rates, who can use it, and whether it makes sense for you.
Tax Forms & DocumentsCertificazione Unica (CU)
The Certificazione Unica (CU) is the annual income certificate issued by Italian employers and payers — Italy's equivalent of a W-2 or P60. Here's what it contains and when you need it.
Identification & RegistrationCodice Fiscale
The codice fiscale is Italy's 16-character tax identification number — used for taxes, banking, healthcare, property, and more. Learn how to get one and why you need it.
Professionals & InstitutionsCommercialista
A commercialista is Italy's licensed accountant and tax advisor — the closest equivalent to a CPA and tax attorney combined. Here's what they do and when you need one.
D
Deduzione Fiscale
A deduzione fiscale reduces your taxable income before IRPEF rates apply — different from a detrazione, which reduces the tax directly. Learn Italy's main tax deductions and who benefits most.
Tax ConceptsDetrazione Fiscale
A detrazione fiscale is a tax credit that directly reduces the IRPEF you owe — different from a deduzione, which reduces taxable income. Learn the main Italian tax credits and how they work.
F
G
I
IMU (Imposta Municipale Unica)
IMU is Italy's municipal property tax, due twice a year on all properties except your primary residence. Learn how it's calculated, when it's due, and what non-residents owe.
Professionals & InstitutionsINPS (Istituto Nazionale della Previdenza Sociale)
INPS is Italy's national social security institute managing pensions, unemployment, and welfare benefits. Here's what it means for employees, freelancers, and expats.
Tax TypesIRPEF (Imposta sul Reddito delle Persone Fisiche)
IRPEF is Italy's progressive personal income tax. Learn the current brackets, how residents and non-residents are taxed differently, and how deductions and credits reduce your bill.
Tax TypesIVAFE (Imposta sul Valore delle Attività Finanziarie Estere)
IVAFE is Italy's 0.2% annual wealth tax on financial assets held abroad by Italian tax residents. Learn what triggers it, how it's calculated, and where it's reported.
Tax TypesIVIE (Imposta sul Valore degli Immobili Esteri)
IVIE is Italy's annual 1.06% tax on foreign real estate owned by Italian tax residents — the international equivalent of IMU. Learn how it works and how to claim foreign tax credits.
M
Modello 730
The Modello 730 is Italy's simplified annual tax return for employees and pensioners. Learn who can use it, how the pre-filled version works, and why non-residents can't file it.
Tax Forms & DocumentsModello F24
The Modello F24 is the standard form used to pay virtually all Italian taxes — from IRPEF to IMU. Learn how it works, how to pay it, and why getting the codes right matters.
Tax Forms & DocumentsModello Redditi PF
The Modello Redditi PF is Italy's comprehensive annual tax return for self-employed individuals, non-residents, and complex income situations. Here's who files it and how.
O
P
Q
R
Ravvedimento Operoso
Ravvedimento operoso lets Italian taxpayers voluntarily correct tax errors or late filings at reduced penalties. Acting early costs far less than waiting for enforcement.
Tax ConceptsRegime degli Impatriati
The regime degli impatriati gives workers relocating to Italy a 50% income tax exemption for five years. Learn the eligibility rules, income limits, and how to claim it.
Tax ConceptsRegime Forfettario
The regime forfettario is Italy's flat-rate tax regime for small businesses and freelancers — offering a 15% substitute tax instead of progressive IRPEF. Here's how it works.
Tax ConceptsRendita Catastale
Rendita catastale is the officially assessed income value assigned to every Italian property — the basis for calculating IMU and other property taxes. Learn what it means and how to find yours.
Tax ConceptsResidenza Fiscale
Residenza fiscale determines whether Italy taxes your worldwide income or just your Italian-source income. Learn how it's established, the 2024 reform, and why it matters for expats.
Tax ConceptsRitenuta d'Acconto
Ritenuta d'acconto is Italy's withholding tax on payments to freelancers and contractors — 20% for residents, 30% for non-residents. Learn how it works and how it affects your cash flow.