The bumper Italian tax guide for 2025

2025 tax deadlines

Late spring is generally the busiest time of year for Italian taxpayers as that’s when the window to file the yearly income tax declaration (or dichiarazione dei redditi) opens.

Barring some rare filing exemptions, anyone who’s considered an Italian resident for tax purposes (also known as ‘fiscal resident’) is required to file income taxes in Italy.

Italian law defines a tax resident as anyone who lives in Italy for at least 183 days per calendar year (184 days in leap years). That includes anyone formally registered as a resident of Italy or simply residing here unofficially for more than half the year.  

READ ALSO: How does Italy decide if I’m a tax resident in the country?

But even if you’re not an Italian tax resident, you may still have to file and pay Italian taxes on any income generated in Italy.

Depending on your personal tax situation and income source, you’ll have to file one of two forms. You can find the official deadlines for this year HERE. 

It is strongly advisable to keep the main income tax dates in mind as the Italian taxman shows little leniency when it comes to late filing and failure to file.

Besides income tax deadlines, there are two other key dates you need to be mindful of if you own property in Italy. 

The first instalment of Italy’s tax on second homes IMU (Imposta Municipale Unica) is due by June 16th, whereas the second instalment is due by December 16th.

You can find these and other key tax dates in our calendar.

First-timers

If this is your first time declaring tax in Italy, your first task will be to get a codice fiscale (a personal identification number similar to an American Social Security Number or a British National Insurance Number) if you don’t already have one. Find a guide to doing that HERE.

The 2025 income tax declaration covers the 2024 tax year, which runs from January 1st, 2024 to December 31st, 2024. 

This means that if you moved to Italy after January 1st, 2025, you won’t have to complete the declaration until next year (unless, of course, you generated income in Italy in 2024).

On the other hand, IMU payments are always relative to the year when you make the payments (this is often referred to as anno corrente in Italian) – in this case 2025.

Online v paper

Most people in Italy file their tax declarations and make payments using the personal profile area (area riservata) of Italy’s Revenue Agency (Agenzia delle Entrate) website.

This is also where taxpayers can find a pre-compiled version of tax return form 730 (or modulo 730) – the income tax declaration form generally used by employees and retirees in Italy. 

Though most tax declarations can be filed online, there are provisions for people who don’t have internet access or are not comfortable completing tasks online. 

In this case, you can visit or call your local branch of Italy’s Revenue Agency and request paper versions of the forms, which you can then submit at the same office.

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Italy’s tax assistance centres (Centri di Assistenza Fiscale, CAF) can also provide tax declaration forms in paper format, as well as instructions and guidance on how to fill them out.

Income tax brackets 

Italy’s income tax Irpef applies to employees, many self-employed workers (regular partita Iva holders, but not those on the flat tax rate) and pensioners.

The Italian government cut the number of available tax brackets from four to three in December 2023.

This means that your 2024 taxable income will be taxed based on the three-bracket system below:

• Up to €28,000 of taxable income: 23 percent
• Up to €50,000: 35 percent
• Over €50,000: 43 percent

Like income taxes in many other Western countries, Italy’s Irpef is a progressive tax, meaning that you only pay the higher rate on the portion of your income that’s over the relevant threshold (for instance, 43 percent on the portion of income exceeding 50,000 euros).

Foreign income 

It’s not unusual for foreigners in Italy to have some or all of their income coming from outside of Italy – whether that is a pension paid from a foreign country, remote working for a non-Italian company or rental income from a property abroad.

If you’re an Italian tax resident, you’ll be required to declare your global income, meaning income generated not just in Italy but anywhere in the world. 

It’s important to note, however, that declaring your foreign income does not necessarily mean you’ll have to pay taxes ‘twice’ on it. 

Italy has dual taxation agreements with most countries, including the UK and the US.

These agreements mean that if you’ve already paid tax on income generated in another country, you won’t be taxed on it again – though you’ll still have to tell the Italian taxman about it. 

A full list of double taxation agreements can be found on the Italian Treasury’s website (currently available only in Italian).

READ ALSO: What is an Italian commercialista and do you really need one?

Given the complexity of the rules and provisions included in most reciprocal agreements, Italian tax residents with foreign income are strongly advised to seek the help of a qualified tax expert (commercialista) when filing their Italian decorations.

Foreign assets and bank accounts

Italian tax residents who hold financial assets abroad – this includes real estate, financial investments, unit trusts, and even foreign bank accounts – are required to declare them by completing the foreign assets section of their yearly tax return form (section W of form 730 and section RW of form Redditi PF).

Depending on the types of assets you own abroad, you may have to pay Italy’s tax on foreign real estate (IVIE) and/or a tax on foreign financial activities (IVAFE).

READ ALSO: Do you need to declare a foreign bank account to the Italian taxman?

It’s worth noting that retirees who’ve opted for Italy’s special seven-percent flat tax rate are exempt from the requirement to declare (and pay) IVIE and/or IVAFE on foreign assets.

You can find further info about declaring foreign bank accounts HERE.

Tax breaks 

Italy has a number of tax breaks to help taxpayers, especially those with low incomes, reduce their tax bill each year.

These are generally divided between tax deductions (deduzioni fiscali), which lower your taxable income, and tax reductions (detrazioni fiscali), which lower your final tax bill. 

Tax reductions for 2025 apply to anything from rent to public transport to education expenses and include a 19-percent tax break on medical expenses applicable to amounts exceeding €129.11.

You can find a quick overview (in Italian) of tax deductions and reductions here. 

It’s also worth noting that Italy offers a number of favourable multi-year tax regimes for residents – these include the seven-percent flat rate for foreign pensioners and the so-called ‘impatriate’ tax scheme.

Taxes for second-home owners 

If you live outside of Italy but own property in the country that you use as a second home or holiday home, there are a few things to be aware of, with the first being whether or not you are an Italian tax resident. 

If you use your Italian property just for holidays then you probably won’t be. But if you tend to spend a significant amount of time at your Italian property, you should keep in mind that Italy’s tax office will consider you a tax resident if, for at least 183 days a year, you are registered with Italy’s National Registry of the Resident Population (Anagrafe) or have your place of “residence or habitual residence” in Italy.

The other thing to consider is whether you have any Italian income through renting your property, including on Airbnb. If you do, you will need to declare this income in Italy. 

READ ALSO: What taxes do you need to pay on a second home in Italy?

Finally, if you’re not an Italian tax resident and don’t generate any income in Italy, you’ll still have to pay the IMU property tax (Imposta Municipale Unica), which is owed by all owners of second homes in Italy, and the TARI waste disposal tax. 

You can find more details about Italy’s IMU tax and this year’s deadlines HERE.

Getting help

If you’re completely daunted by the Italian tax system, don’t panic: help is available.

If you have a fairly simple tax situation (e.g. you have a single employer and no other sources of income) and speak some Italian, you may be able to get the help you need at one of Italy’s tax assistance centres (Centri di Assistenza Fiscale, or CAF).

If, however, you are self-employed, are starting or operating a business, earn income in multiple countries, or simply find the whole process too difficult, you may need the help of a qualified tax expert (or commercialista in Italian). 

Please note: all commercialisti in Italy must be registered with national association CNCDEC (Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili).

The association’s website allows you to look for registered professionals in your area by entering your postal code (CAP).

READ ALSO: How much should you pay your Italian accountant to do your taxes?

As with most things in Italy however, word of mouth is key, so make sure to ask friends and family for recommendations if possible.

Alternatively, online forums and message boards for foreign nationals in Italy often share the names of professionals who have experience with assisting international residents.

Please note that The Local is unable to advise on individual cases. 

For further information on Italian taxes, visit the Italian Revenue Agency’s website or seek independent advice from a qualified tax professional or tax assistance centre.