Can I use the regime forfetario in Italy?
The regime forfetario is open to sole traders and professionals with revenue up to €85,000. It charges a 15% substitute tax (5% for the first five years of a new activity) with no IVA charged and no IRAP.
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Detailed Explanation
## What is the regime forfetario?
The regime forfetario is a flat-rate regime for sole traders and professionals. Taxable income is revenue multiplied by the profitability coefficient (coefficiente di redditività) for the activity's ATECO code. Actual costs are not deducted.
## The limits
- 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.
- The regime is not available if prior-year employment income exceeds €35,000, which is the limit for 2025 and 2026.
## The tax
The substitute tax is 15%, or 5% for the first five years of a new activity. Forfettari charge no IVA and pay no IRAP. The coefficient depends on the ATECO code (Annex 2 of Law 145/2018), so Finn asks for the code first. The substitute tax at 15% is €3,000.
## Invoicing
Forfettari must still issue electronic invoices through SDI, and have done since 2024. AccountsOS does not transmit to SDI. See the SDI question.
## How AccountsOS helps
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.
Source: https://www.agenziaentrate.gov.it/portale/regime-forfetario-le-regole-2020-/infogen-regime-forfetario-le-regole-2020-
Real-World Examples
New freelancer
A new freelancer with a new activity can qualify for the 5% rate for the first five years.
Revenue over the exit line
A sole trader passes €100,000 of revenue in the year and leaves the regime in that same year.
High employment income
A person with prior-year employment income above €35,000 cannot use the regime for 2025 or 2026.
Common Mistakes to Avoid
- Assuming forfettari do not need e-invoices
- Expecting to deduct actual costs
- Forgetting the €100,000 same-year exit line
- Using an example coefficient as if it were a real ATECO value
Frequently Asked Questions
What is the revenue limit for entry?
€85,000.
What is the substitute tax?
15%, or 5% for the first five years of a new activity.
Do forfettari charge IVA?
No. They also pay no IRAP.
Must forfettari use SDI?
Yes, since 2024.
Does AccountsOS transmit forfettario invoices to SDI?
No. The user issues them in their own SDI channel.
Practical Tips
- Compare the regime with ordinary taxation using your real costs
- Ask your commercialista for the coefficient for your ATECO code
- Track revenue against €85,000 and €100,000 during the year
- Set up your SDI channel before you issue the first invoice
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