Italy (IT)
Italy is a parliamentary republic of 20 regions stretching from the Alpine peaks of the Dolomites to the sun-baked coasts of Sicily and Sardinia, celebrated worldwide for its unparalleled Renaissance art and architecture, UNESCO-laden historic cities from Rome to Florence and Venice, world-defining cuisine and wines, passionate football culture, and a relaxed Mediterranean lifestyle that has drawn expats, artists, and retirees for centuries.
Capital: Rome
Region: Europe
Language: Italian
Currency: EUR (€)
Cost of living: Moderate (index 65)
Emergency: 112
Premium
Business Setup
Start a business or go freelance in Italy.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Open a Partita IVA at the Agenzia delle Entrate (free, online or in person). Choose the ATECO code matching your activity — critical for social security rate and forfettario coefficients. Can be done same-day online via Fisconline/Entratel with SPID.
- 2 Choose your tax regime: Regime Forfettario (15% flat tax, simplified, recommended for under €85,000 turnover) or Regime Ordinario (standard accounting, required over €85,000).
- 3 Register with the appropriate social security body: INPS Gestione Separata (33.72% rate, for most professionals and consultants) OR INPS Artigiani/Commercianti (for traders and artisans) OR your professional Cassa (e.g. Inarcassa for engineers/architects, Cassa Forense for lawyers).
- 4 If not in forfettario regime: register for IVA (22% standard) and begin keeping accounting records. In forfettario: no IVA is charged to clients and no IVA is recoverable.
- 5 Issue invoices (fatture) for each service provided. From 2024, electronic invoicing (fattura elettronica via SDI — Sistema di Interscambio) is mandatory for all Partita IVA, including forfettario regime.
- 6 Open a dedicated business bank account (raccomandato for forfettario; required for ordinario). Fineco, N26 Business, BBVA Business or a cooperative bank work well.
- 7 Hire a commercialista (accountant) — strongly recommended even in forfettario. Cost: €500–1,500/year. They handle annual tax return (Modello Redditi), INPS declarations, and VAT (if applicable).
- 8 File annual tax return (Modello Redditi / Modello 730) by 30 September/30 November. Pay IRPEF in June (balance + first instalment) and November (second instalment) via F24 (bank or online).
Tax registration
Partita IVA free at Agenzia delle Entrate (agenziaentrate.gov.it) with SPID or in-person at any Agenzia delle Entrate office. Provides your Partita IVA number (11 digits) for invoicing. Simultaneous ATECO code selection determines your activity and applicable contributions.
VAT threshold
€85,000/year gross turnover for forfettario regime (2026). Over €85,000: must switch to regime ordinario and charge 22% IVA. The forfettario threshold was raised from €65,000 to €85,000 in 2023.
Invoicing
All invoices (fatture) must include: Partita IVA, fiscal address, client details (Partita IVA or Codice Fiscale), unique invoice number, date, description of services, amount (net + IVA if applicable, or "operazione esente IVA regime forfettario" if in forfettario), INPS cassa previdenziale 4% if professional, stamp duty (marca da bollo €2 for invoices over €77.47 if IVA-exempt). Electronic invoicing (fattura elettronica) mandatory via SDI since July 2022 for most; expanded to forfettario regime from January 2024.
Social security
INPS Gestione Separata (most professionals and consultants): 33.72% on net income (contributi a carico del soggetto). Pay quarterly via F24. INPS provides pension accrual and covers maternity, sick leave (only if with no other social security). Professional Casse (Ordini): if you belong to a regulated profession (ingegnere, avvocato, medico, commercialista, ecc.), contributions go to the specific Cassa instead, at sector-specific rates.
💡 Italy's forfettario regime is one of Europe's most competitive flat-tax arrangements for small businesses — 15% all-in (or 5% for first 5 years) on net revenue. However, INPS contributions (33.72%) are separate and can be significant. Total effective fiscal burden: ~20–30% at moderate income levels in forfettario. The commercialista is worth every euro — Italian tax rules are complex, penalties for errors are steep, and electronic invoicing via SDI requires software or a service like Fatture in Cloud, Aruba, or Danea.
🏢 Business Structures
Ditta Individuale · Ditta Individuale
Sole Trader / Individual Business
€0
Min. capital
3–10 working days
Setup time
Liability: Unlimited personal liability
Setup cost: €150–500 (CCIAA registration, Partita IVA, INPS registration)
Best for: Small traders, artisans, simple service businesses. Must register with CCIAA (Camera di Commercio), obtain Partita IVA, and register with INPS (Gestione Artigiani o Commercianti). Cannot use the forfettario regime if turnover exceeds €85,000.
Partita IVA (Libero Professionista) · Libero Professionista con Partita IVA
Self-Employed Professional / Freelancer
€0
Min. capital
1–3 days (Partita IVA opening); 1–3 months (Ordine/Albo registration for regulated professions)
Setup time
Liability: Unlimited personal liability
Setup cost: €0–200 (Partita IVA free via Agenzia delle Entrate; professionals may need Ordine registration)
Best for: IT professionals, designers, consultants, writers, photographers, translators, and regulated professionals (avvocati, commercialisti, medici, ingegneri, etc.). Most common form for digital nomads and freelancers.
Regime Forfettario · Regime Fiscale Forfettario
Flat Tax Regime for Small Businesses
€0
Min. capital
Immediate (elected when opening Partita IVA)
Setup time
Liability: Personal liability (not a company structure but a tax regime)
Setup cost: €0–100
Best for: Freelancers and sole traders with annual turnover under €85,000 (2026 threshold). Pay a 15% flat tax on a "forfait" portion of revenue (cost percentage deducted based on activity category — e.g. 22% cost deduction for consultants, leaving 78% as taxable income). First 5 years: reduced rate of 5% flat tax. No IVA charged to clients or recoverable. Simplified bookkeeping. Cannot employ more than 1 employee earning above €20,000/year. Cannot have income from employment exceeding €30,000 in previous year (with same client). The forfettario is the recommended starting structure for most new Italian freelancers.
SRL · Società a Responsabilità Limitata
Limited Liability Company (Ltd)
€1 (minimum) to standard €10,000
Min. capital
2–4 weeks
Setup time
Liability: Limited to share capital
Setup cost: €1,500–4,000 (notaio fees + registration)
Best for: SMEs, startups, businesses with multiple shareholders or employees, or where personal liability protection is important. Requires a notaio for incorporation. Shareholders can be 1 (SRL unipersonale) or multiple. Annual accounts must be filed with CCIAA. Dividends taxed at 26% (capital gains tax rate).
SRL Semplificata · Società a Responsabilità Limitata Semplificata
Simplified Limited Liability Company
€1–9,999
Min. capital
1–3 weeks
Setup time
Liability: Limited to share capital
Setup cost: €300–800 (notaio fees reduced by law)
Best for: Young entrepreneurs (under 35 at formation — age limit removed in 2021 reform) wanting LLC protection at reduced cost. Standard notaio fees waived. Operationally identical to SRL but capital must remain under €10,000.
SPA · Società per Azioni
Joint-Stock Company / Public Limited Company (PLC)
€50,000
Min. capital
4–8 weeks
Setup time
Liability: Limited to share capital
Setup cost: €5,000–15,000+
Best for: Large businesses, those seeking external investment, or companies planning to list on the stock exchange. Stricter governance requirements — board of directors, statutory auditors (revisori), annual statutory audit.
Società in Nome Collettivo (SNC) · Società in Nome Collettivo
General Partnership
€0
Min. capital
1–2 weeks
Setup time
Liability: Unlimited joint and several liability for all partners
Setup cost: €500–1,500
Best for: Small family businesses or partnerships where all partners are actively involved and trust each other completely. Not recommended for most expats due to unlimited liability.
Business Setup
Unlock the complete Business Setup guide for Italy — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere