What is Regime Forfetario (Italy)?
The regime forfetario is a flat-rate regime for Italian sole traders and professionals. It taxes a fixed share of revenue at a 15% substitute tax, or 5% for the first five years of a new activity, with no IVA charged and no IRAP.
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Current Rate (Calendar year)
15% substitute tax, or 5% for the first five years of a new activity. Access up to €85,000 of revenue.
Example
Taxable income is revenue multiplied by the profitability coefficient for the activity's ATECO code. The coefficient depends on the ATECO code (Annex 2 of Law 145/2018); Finn asks for the code before working the figure out. The real coefficient depends on the ATECO code.
How Regime Forfetario (Italy) works in Italy
Access is allowed up to €85,000 of revenue. A taxpayer who exceeds €100,000 of revenue in the year leaves the regime in that same year. Actual costs are not deducted. The regime is not available if prior-year employment income exceeds €35,000, which is the limit for 2025 and 2026.
Forfettari charge no IVA and pay no IRAP. They must still issue electronic invoices through SDI, and this has applied since 2024.
Finn never adds IVA to a forfettario's invoice and never raises an IVA or IRAP liability for one. Whether the regime suits you is a question for a commercialista.
Related terms
IVA (Imposta sul Valore Aggiunto) is Italian VAT. The ordinary rate is 22%, with reduced rates of 10%, 5% and 4%. It is paid through the modello F24.
The Sistema di Interscambio (SDI) is the Agenzia delle Entrate platform through which every Italian e-invoice travels. E-invoicing through SDI is mandatory for every partita IVA holder, including forfettari. An invoice legally exists only once it has been transmitted to SDI.
IRAP (Imposta Regionale sulle Attività Produttive) is a regional tax on net production value (valore della produzione netta). The ordinary rate is 3.90%, and each region may vary it by up to 0.92 percentage points.
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