Italian Flat-Rate Tax Calculator

The regime forfettario is a simplified flat-rate tax regime for Italian VAT holders with annual revenues up to €85,000. No VAT is charged on invoices, and taxable income is determined by applying a profitability coefficient instead of deducting actual expenses. The substitute tax rate is 5% (first 5 years for new businesses) or 15%.

It depends on your sector and revenue. A professional with €40,000 revenue pays approximately 36-43% between substitute tax and INPS social contributions. The effective tax rate is lower for sectors with a low profitability coefficient (e.g., trade at 40%).

The 5% rate applies for the first 5 years if it is your first business activity (or you have not carried out a similar activity in the previous 3 years). After 5 years, it automatically increases to 15%.

Gestione Separata: 26.07% of taxable income (no minimum). Typical for professionals without a dedicated fund.
Artisans and Traders: approximately 24% with an annual minimum contribution of about €4,521 (artisans) / €4,612 (traders). Option for 35% reduction for flat-rate taxpayers.
Professional fund: variable rate depending on the specific fund (ENPAM, Inarcassa, Cassa Forense, etc.).

It is advantageous if you have few deductible costs (below the complement of the coefficient), do not need to deduct VAT, and your revenue stays under €85,000. For many professionals and freelancers with low costs, the flat-rate regime is significantly more convenient than the ordinary regime.

Yes, since 2026 the employment income limit for accessing the flat-rate regime has been raised to €35,000 (previously €30,000). However, you cannot invoice predominantly (over 50%) to your employer or former employer (in the previous 2 years).

Main requirements: annual revenues up to €85,000, employment income below €35,000, no participation in partnerships or transparent LLCs, no predominantly invoicing your employer, foreign income below 75% of total, and Italian tax residency. If you exceed €85,000 during the year, you exit the regime from the following year.

Flat-rate invoices show the amount without VAT and must include the legal reference: “Operation carried out pursuant to Art. 1, paragraphs 54-89, Law 190/2014”. A €2 revenue stamp is required for amounts over €77.47. The client cannot deduct VAT since none is charged. You can use our invoice generator to create correct flat-rate invoices.

No, under the flat-rate regime actual expenses are not deductible. Taxable income is calculated by applying the profitability coefficient to revenue. This is advantageous if your real costs are lower than the flat-rate deduction, but disadvantageous if you have high expenses (rent, employees, raw materials). Use the comparison above to check.

Switch to the ordinary regime when: actual costs exceed the flat-rate deduction, you need to deduct VAT on purchases, revenue exceeds €85,000, or your clients need to deduct VAT from your invoices. Our simulator with the flat-rate vs ordinary comparison helps you decide.