Italy's flat-rate regime (forfettario) explained

Take your revenue, multiply it by your activity's coefficient, subtract the pension contributions you paid, and apply 15%. Most professional activities (ATECO groups such as 69 to 75) use a 78% coefficient, so on 40,000 € of fees your taxable base is 31,200 € before contributions. At 15% that is 4,680 €, or 1,560 € if you qualify for the 5% start-up rate. Shops and restaurants use 40% and construction or real estate 86%, so the same revenue gives very different bills.

Between 85,000 € and 100,000 € you stay in the regime for the rest of that year and move to the ordinary regime from the next one. Above 100,000 € the regime ends in the same year. The Agenzia delle Entrate says the payment that takes you past 100,000 € is the line: from that operation on you charge VAT and follow ordinary rules. Track your income as you collect it, because the limits count cash received, not invoices issued.

Law 190/2014 gives 5% for the year you start and the four after it. You must not have run a business, profession or artistic activity in the three years before, alone or with others. The new activity cannot be a mere continuation of a job you did as an employee or freelancer, though a compulsory traineeship does not count against you. If you take over someone else's business, its revenue in the previous year must be within 85,000 €.

You charge no VAT, so the e-invoice carries regime code RF19 and VAT nature N2.2 instead of a rate. You add a line saying the operation is not subject to withholding tax under Law 190/2014, article 1, paragraph 67. If the total is above 77.47 €, you add a 2 € stamp duty that you then pay to the Agenzia every quarter, with an F24 or from its portal. Many invoicing apps fill these fields once you set your tax regime.

You are out if you use special VAT schemes, or if you live outside the EU or EEA and earn less than 75% of your income in Italy. Mainly selling buildings, land or new vehicles to other EU countries also excludes you. So does holding a stake in a partnership, a professional association or a tax-transparent limited company. Employment income above the yearly limit (30,000 €, or 35,000 € in 2025 and 2026) closes the door too, unless that job ended during the year.