The Italian Flat-Rate Tax Regime for Small Businesses: Regime Forfettario

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Starting a business can be exciting, but the tax implications can quickly become overwhelming. If you’re a small business owner in Italy, the Flat-Rate Tax Regime could be the answer to simplifying your life (while paying much less taxes).

What is Regime Forfettario?

The Flat-Rate Tax Regime is a simplified tax system designed for small businesses and freelancers with annual revenues below €85.000. Instead of calculating deductions and expenses, you simply apply a fixed tax rate to your gross income.


Simplified administration: Forget complex bookkeeping and tax calculations. This regime reduces paperwork and saves you time and money.

Lower tax burden: Depending on your specific activity, the flat tax rate can be significantly lower than traditional progressive tax rates.

Reduced obligations: You’re exempt from VAT (IVA) payments, eliminating the need to charge and collect this tax.

regime forfettario’s Requirements

The reporting requirements for this Regimein Italy are designed to simplify the administrative burden for small taxpayers. Under this scheme, individuals are exempt from certain reporting obligations, such as the “Spesometro” and “Esterometro,” which are used to report transactions and excess tax deductions for costs concerning gross income. This exemption can significantly reduce the paperwork and reporting responsibilities for those eligible for the Regime Forfettario. 

Here are the key points and requirements to access to this flat tax system

Income Threshold: This system is available to individuals with annual gross income not exceeding €85.000;

Separate Social Security Regime: Those eligible for the regime need to pay social security contributions through the separate social security regime (gestione separata) at a rate of around 26%;

Tax Rate: Under this special regime, eligible individuals can benefit from a tax rate of 5% for the first five years of activity, which then increases to 15%;

Eligibility Criteria: The eligibility for the flat tax scheme is subject to the respect of certain criteria and limits.

Why you need this flat tax system

Save time and money by focusing on growing your business instead of grappling with complex tax calculations. Simplify compliance to effortlessly meet your tax obligations and avoid potential headaches. Additionally, you gain a competitive advantage by potentially enjoying a lower tax burden compared to traditional regimes.

Ready to simplify your taxes?

The Flat-Rate Tax Regime can be a game-changer for eligible small businesses in Italy. Contact a tax advisor to assess your eligibility and ensure you’re maximizing this opportunity.

Remember: This information is for general purposes only and does not constitute professional tax advice. While the Regime Forfettario offers certain simplifications and benefits, it’s essential to carefully consider its suitability based on individual business circumstances, and always consult with a qualified tax advisor for personalized guidance.