Italy's sun-drenched coastlines, world-class cuisine, and rich cultural heritage make it one of the most desirable destinations for remote workers worldwide. But if you're considering working from a café in Florence or a co-working space in Milan, understanding digital nomad taxes in Italy is essential before you book your flight. Getting your tax situation wrong can lead to unexpected liabilities, penalties, and double taxation.

This guide breaks down everything you need to know about remote work tax in Italy for the 2025/2026 tax year — from residency rules and income tax rates to special regimes designed to attract foreign talent, and the new Digital Nomad Visa that Italy introduced. Whether you're a freelancer, an employee of a foreign company, or running your own online business, read on to ensure you stay compliant and minimize your tax burden.

Understanding Tax Residency in Italy: The 183-Day Rule and Beyond

The single most important factor determining your freelancer tax Italy obligations is whether you qualify as an Italian tax resident. Italy's tax residency rules were updated starting from the 2024 fiscal year and continue to apply for 2025/2026.

Who Is Considered a Tax Resident?

Under Italian tax law (Article 2 of the TUIR — Testo Unico delle Imposte sui Redditi), you are considered a tax resident of Italy if, for the greater part of the tax year (more than 183 days, or 184 in a leap year), you meet any one of the following criteria:

  • Domicile in Italy — Your primary center of personal and family relations is in Italy
  • Residence in Italy — You have a habitual dwelling in Italy (as defined under the Italian Civil Code)
  • Physical presence in Italy — You are physically present on Italian territory for more than 183 days (including days of arrival, departure, weekends, and holidays)
  • Registration in the Anagrafe — You are registered in the Italian Registry of Resident Population (Anagrafe della Popolazione Residente)

Importantly, meeting just one of these conditions is enough to make you a full Italian tax resident. The 2024 reform clarified that physical presence is now an explicit standalone criterion, which is particularly relevant for digital nomads.

Why This Matters for Digital Nomads

If you become a tax resident, Italy taxes you on your worldwide income — not just income earned in Italy. This means your salary from a US employer, freelance income from Australian clients, and investment returns from a UK brokerage could all be subject to Italian taxation.

If you remain a non-resident, Italy only taxes income sourced within Italy (e.g., work performed on Italian territory for an Italian client, or rental income from Italian property).

Common mistake: Many digital nomads assume that simply not registering with the Anagrafe keeps them out of the Italian tax system. This is incorrect. If you're physically present in Italy for more than 183 days — even without formal registration — you can be treated as a tax resident.

Italy's Income Tax Rates for 2025/2026: What You'll Owe

Italy uses a progressive income tax system called IRPEF (Imposta sul Reddito delle Persone Fisiche). For the 2025 tax year, the rates are structured as follows:

Taxable Income (EUR) Tax Rate
Up to €28,000 23%
€28,001 – €50,000 35%
Over €50,000 43%

These rates apply to your total taxable income after deductions and allowances.

Practical Example

If you're a digital nomad who becomes an Italian tax resident and earns €60,000 in gross worldwide income:

  1. First €28,000 taxed at 23% = €6,440
  2. Next €22,000 (€28,001 – €50,000) taxed at 35% = €7,700
  3. Remaining €10,000 (€50,001 – €60,000) taxed at 43% = €4,300
  4. Total IRPEF = €18,440

Additional surcharges may apply at the regional (typically 1.23%–3.33%) and municipal (up to 0.9%) level, which can add several percentage points to your effective rate.

Use our Italy Income Tax Calculator to estimate your personal tax liability based on your specific income level.

Social Security Contributions

Beyond income tax, freelancers and self-employed individuals must also pay social security contributions to INPS (Istituto Nazionale della Previdenza Sociale). If you register under the Gestione Separata (the scheme for freelancers without a dedicated professional fund), the contribution rate for 2025 is approximately 26.07% of taxable income. This is a significant additional cost that many digital nomads overlook.

Employees of foreign companies may be exempt if they remain covered by their home country's social security system under a bilateral agreement or EU regulations (via an A1 certificate within the EU/EEA).

Italy's Flat Tax Regime for New Residents (Regime Forfettario and the €100,000 Substitute Tax)

Italy offers two key favorable tax regimes that digital nomads should evaluate carefully.

The Regime Forfettario (Flat-Rate Regime for Small Businesses and Freelancers)

The Regime Forfettario is Italy's simplified tax regime for small businesses and freelancers. Key features for 2025/2026:

  • Eligibility threshold: Annual revenues up to €85,000
  • Flat substitute tax rate: 15% (reduced to 5% for the first 5 years of a new business activity)
  • Taxable base: Only a percentage of your revenue is taxed, determined by a profitability coefficient based on your ATECO activity code (ranging from 40% to 86%)
  • No VAT charged on invoices (below the threshold)
  • Simplified bookkeeping requirements

Example: A freelance web developer under the Regime Forfettario with a 67% profitability coefficient earning €70,000 would have a taxable base of €46,900. At the 5% startup rate, the tax would be just €2,345 — dramatically lower than the standard IRPEF.

However, there are important restrictions:

  • You cannot have earned more than €30,000 in employment income in the prior year (if you also have employment income)
  • You must not have controlling interests in companies related to your freelance activity
  • The regime is not available if your main client is your current or former employer (within the last two years)

The €100,000 Flat Tax for High-Net-Worth Individuals (Regime dei Neo-Residenti)

Italy's flat tax regime for new tax residents (Article 24-bis of the TUIR) allows qualifying individuals who transfer their tax residence to Italy to pay a flat annual substitute tax of €100,000 on all foreign-sourced income, regardless of the amount. Family members can be included for an additional €25,000 each per year.

Key eligibility requirements:

  • You must not have been an Italian tax resident for at least 9 of the 10 tax years preceding the transfer
  • You must file a specific election (interpello) with the Italian Revenue Agency
  • The regime lasts for a maximum of 15 years
  • Italian-sourced income is still taxed under normal IRPEF rules

For a high-earning digital nomad — say, someone earning €300,000+ annually from foreign clients — paying a flat €100,000 instead of potentially €120,000+ in progressive IRPEF (plus surcharges) can represent substantial savings.

Important 2025 update: There have been legislative discussions about modifying this regime. The flat tax amount was doubled from €100,000 (originally set at €100,000 when introduced in 2017) and the political landscape continues to evolve. Always verify the current rules before relying on this option.

Italy's Digital Nomad Visa: Legal Framework for Remote Workers

Italy officially introduced a Digital Nomad Visa in 2024, providing a legal pathway for non-EU/EEA citizens to live and work remotely from Italy. Here's what you need to know for 2025:

Eligibility Requirements

  • You must be a non-EU/EEA national
  • You must work remotely for a company registered outside of Italy, or be a self-employed freelancer with clients outside Italy
  • Minimum annual income requirement: approximately €28,000 (three times the minimum income threshold for healthcare exemption)
  • You must have health insurance valid in Italy
  • You must demonstrate that your work is performed using technological tools (computers, internet, etc.)
  • No criminal record

Duration and Tax Implications

The Digital Nomad Visa is initially granted for up to one year and can be renewed. A key consideration: if you stay in Italy for more than 183 days under this visa, you will become an Italian tax resident and be subject to worldwide taxation.

The visa itself does not grant any special tax exemptions. You will need to register with the Italian tax authorities, obtain a codice fiscale (tax identification number), and comply with all standard tax obligations — including potentially registering as a freelancer if you're self-employed.

Combining the Visa with Tax Regimes

Smart planning can help digital nomads combine the Digital Nomad Visa with favorable tax regimes:

  • Freelancers earning under €85,000 may qualify for the Regime Forfettario with its 5% or 15% flat tax
  • High earners may benefit from the €100,000 flat tax regime if they meet the residency history requirements
  • Short-stay nomads (under 183 days) can potentially avoid Italian tax residency altogether, though they should consider the tax rules in their home country

Double Taxation Agreements: Avoiding Being Taxed Twice

One of the biggest concerns for digital nomads is double taxation — being taxed on the same income by both Italy and your home country. Italy has an extensive network of Double Taxation Agreements (DTAs) with over 90 countries, including:

  • United States
  • United Kingdom
  • Canada
  • Australia
  • Germany, France, Spain, and most EU countries
  • Japan, South Korea, and many Asian nations
  • Brazil, Argentina, and others in South America

How DTAs Work for Remote Workers

Most of Italy's DTAs follow the OECD Model Tax Convention, which includes these key principles:

  1. Employment income is generally taxed in the country where the work is physically performed. If you're working from Italy, Italy has the primary right to tax that income — even if your employer is overseas.
  2. Short-stay exemption (Article 15): You may be exempt from Italian tax on employment income if: (a) you're present in Italy for fewer than 183 days in any 12-month period, (b) your employer is not resident in Italy, and (c) the remuneration is not borne by a permanent establishment in Italy.
  3. Self-employment and freelance income under many DTAs is taxable where the individual is resident. Once you become an Italian tax resident, Italy will generally have the right to tax your worldwide freelance income.
  4. Tax credits: If you're taxed in both countries, the DTA typically provides relief through a foreign tax credit in your country of residence, preventing true double taxation.

Pro tip: If you're a US citizen, remember that the US taxes its citizens on worldwide income regardless of where they live. The US-Italy DTA and the Foreign Earned Income Exclusion (FEIE) of up to $130,000 (2025 figure) can help reduce your US tax burden, but you'll still need to file US returns.

Key Tax Filing Obligations and Deadlines

If you become an Italian tax resident as a digital nomad, you must comply with several filing obligations:

Annual Tax Return (Dichiarazione dei Redditi)

  • Form: Modello Redditi PF (for individuals with business/freelance income) or Modello 730 (for employees with simpler situations)
  • Filing deadline: November 30 of the year following the tax year (e.g., November 30, 2026 for the 2025 tax year)
  • Payment deadlines: Tax balances are due by June 30, with an advance payment installment due by November 30

Other Important Obligations

  • Quadro RW (Foreign Asset Reporting): Italian tax residents must declare all foreign financial assets, including bank accounts, investment accounts, cryptocurrency, and real estate. Failure to report can result in severe penalties (3%–15% of undeclared amounts).
  • IVAFE: An annual wealth tax of 0.2% on foreign financial assets (similar to Italian stamp duty on domestic accounts)
  • IVIE: A property tax of 0.76% on the value of foreign real estate (with credits for foreign property taxes paid)
  • VAT obligations: Self-employed individuals outside the Regime Forfettario must register for VAT (Partita IVA), charge VAT on Italian/EU services, and file periodic VAT returns

Penalties for Non-Compliance

Italy is increasingly sophisticated in detecting unreported foreign income through CRS (Common Reporting Standard) automatic exchange of information. Penalties for late or missing filings include:

  • 120%–240% of unpaid taxes for income tax evasion
  • Fines of €258–€2,065 for late or omitted tax returns
  • Criminal liability for significant evasion (over €50,000)

Practical Tips for Digital Nomads Working from Italy

Here are actionable steps to manage your remote work tax Italy situation effectively:

  1. Track your days carefully. Maintain a detailed log of your days spent in Italy versus other countries. This is your primary defense in establishing or challenging tax residency.

  2. Get a codice fiscale early. You'll need this Italian tax ID number for almost everything — opening a bank account, signing a lease, registering for healthcare, and filing taxes.

  3. Evaluate the Regime Forfettario. If you're a freelancer earning under €85,000, this regime can dramatically reduce your tax burden. Consult an Italian commercialista (accountant) to determine your eligibility.

  4. Don't ignore your home country. Even if you establish Italian tax residency, you may still have filing obligations in your home country. Check your home country's exit tax rules and ongoing obligations.

  5. Use the right tools. Calculate your estimated Italian tax liability with our Italy Income Tax Calculator to understand what you'll owe under different income scenarios.

  6. Hire a qualified commercialista. Italian tax law is complex, and the intersection with international tax treaties adds another layer. A tax professional experienced with expat and digital nomad situations is worth the investment.

  7. Plan your arrival date strategically. If you're arriving in Italy mid-year, your arrival date can determine whether you cross the 183-day threshold in the current tax year. Even a few days' difference matters.

Frequently Asked Questions

Do I have to pay taxes in Italy if I work remotely for a foreign company?

If you're physically performing the work in Italy and you stay for more than 183 days, you'll likely become an Italian tax resident and owe Italian income tax on your worldwide income. Even for shorter stays, Italy may have the right to tax income for work performed on its territory, though DTA short-stay exemptions may apply.

Can I use the Regime Forfettario as a digital nomad?

Yes, if you register as a freelancer (libero professionista) or sole proprietor (ditta individuale) in Italy and meet the eligibility criteria, including the €85,000 revenue cap. This is one of the most tax-efficient options for freelance digital nomads.

Is cryptocurrency income taxable in Italy?

Yes. Since 2023, Italy has imposed a 26% substitute tax on capital gains from cryptocurrency and other digital assets. For 2025, gains exceeding €2,000 per year are subject to this tax. You must also report crypto holdings on the Quadro RW of your tax return.

What if I split my time between Italy and another country?

You'll need to carefully analyze the tax residency rules of both countries and the applicable DTA. It's possible to be considered resident in both countries under domestic law, in which case the DTA's "tie-breaker" rules determine your country of residence for treaty purposes.

How much will I pay in taxes on €50,000 of freelance income under the Regime Forfettario?

Assuming a 78% profitability coefficient (common for professional services) and the standard 15% rate, your taxable base would be €39,000, resulting in a flat tax of €5,850. Under the 5% startup rate, this drops to just €1,950. You'd also owe INPS contributions of approximately €10,167 (26.07% of €39,000). Use our Italy Income Tax Calculator to model different scenarios.

Conclusion: Plan Before You Pack

Working remotely from Italy as a digital nomad is an incredible lifestyle opportunity, but it comes with real tax obligations that require careful planning. Here are the key takeaways:

  • The 183-day rule is critical — spending more than half the year in Italy will almost certainly make you a tax resident with worldwide tax obligations
  • Italy's progressive tax rates reach up to 43%, plus regional and municipal surcharges, making it one of Europe's higher-tax jurisdictions
  • The Regime Forfettario offers dramatic savings for qualifying freelancers (5%–15% flat tax on a reduced taxable base)
  • Double taxation agreements provide relief but require proactive planning and proper documentation
  • Foreign asset reporting (Quadro RW) is mandatory and heavily penalized if omitted
  • The Digital Nomad Visa provides legal residency but does not exempt you from standard tax rules

The difference between a well-planned move to Italy and an unplanned one can easily amount to tens of thousands of euros in taxes. Start by estimating your liability with our Italy Income Tax Calculator, and consider engaging a qualified Italian tax professional to structure your move optimally.

This article is for informational purposes only and does not constitute tax advice. Tax laws change frequently; consult a qualified tax professional for advice specific to your situation.