Freelance and Self Employed Taxes in Italy: A Quick Guide for UK Freelancers

Relocating to Italy as a UK freelancer? You're going to want to know about how the tax system works for self-employed individuals there. The Italian system works very differently from HMRC and the setup can feel complex at first.

In this guide, we've explained the main parts of freelance tax in Italy in 2026, including how the ordinary tax system works, when the Regime Forfettario may apply, what to know about VAT and social security, and which filing dates matter most.

We've also explained how Wise Business can fit into the picture if you need to manage freelance income across GBP and EUR while living and working in Italy.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited, its subsidiaries or affiliates. It should not be treated as advice from, or a communication with, HMRC, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Register for Wise Business ✍️

Key takeaways

Discover Wise Business 🔍

Understanding the Italian tax system for freelancers

Before you can properly start freelancing in Italy, you will usually need a codice fiscale for dealing with public bodies and a partita IVA to start a business activity.¹ For most UK freelancers, that means dealing with the Italian Revenue Agency rather than a UK-style self-assessment setup from day one.¹

If you do not use the flat-rate regime, your income is generally taxed under Italy’s ordinary personal income tax system, known as IRPEF.³ PwC’s 2026 summary says national income tax is progressive, with rates of 23% up to €28,000, 33% from €28,001 to €50,000, and 43% above €50,000, with separate regional and municipal taxes applying as well.³

For many freelancers, the real decision is whether they can use the simpler Regime Forfettario instead of the ordinary regime.²

The Regime Forfettario explained

The Italian Revenue Agency describes the Regime Forfettario as a favourable regime for individuals carrying on business or professional activities, with access linked to eligibility rules and revenue limits.² The substitute tax rate is 15%, and it can fall to 5% for eligible new activities for the first five years.²

The headline revenue threshold is €85,000.² If you exceed €100,000 in the year, the exit from the regime can apply immediately rather than from the following year.²

There are also additional exclusion rules, so it is worth checking the Revenue Agency guidance carefully if you have employment income, interests in companies, or a more complex working arrangement than straightforward solo freelancing.²

How tax is calculated under the flat-rate regime

Under the Regime Forfettario, you do not work out taxable income by subtracting each business cost individually.⁴ Instead, the Revenue Agency says taxable income is calculated by applying a profitability coefficient linked to your ATECO business code to the revenue or fees you receive.⁴

That means your result depends heavily on the ATECO code attached to your activity.⁴ For example, if your coefficient were 78% and you invoiced €50,000 in a year, your taxable income would be €39,000 before applying the substitute tax rate.⁴

What admin changes under forfettario

The flat-rate regime also reduces VAT admin.⁵ The Revenue Agency says people using forfettario do not charge VAT on invoices, do not deduct VAT on purchases, do not liquidate or pay VAT, and are not required to submit the annual VAT return.⁵

VAT obligations for Italian freelancers in 2026

If you are outside forfettario, the standard Italian VAT rate is 22%.¹⁰ Whether you actually charge it on a given invoice depends on the nature of the supply, where your client is based, and your tax position, so international work can become technical quite quickly.¹⁰

For freelancers on the ordinary regime, the annual VAT return for tax year 2025 is filed between 1 February and 30 April 2026.⁹ If you are on forfettario, the Revenue Agency says you are generally exempt from that annual VAT filing requirement.⁵

Social security contributions for the self-employed

Income tax is only part of the story because social security can materially change your budget.⁶ PwC’s Italy summary says self-employed individuals who are VAT-number holders and enrolled exclusively in Gestione Separata INPS were charged 26.07% for FY 2025, while the page notes that the 2026 contribution rate should be checked separately.⁶

Tax deadlines and filing your annual return

PwC says Italian income taxes are generally paid through the tax return using a self-assessment method with two advance payments during the current year and one final balance payment in the following year.⁷ The standard payment dates it lists are 30 June and 30 November.⁷

Manage your GBP and EUR freelance income with Wise Business

Wise Business can help UK freelancers hold and convert business funds across 40+ currencies with low, transparent fees.

With Wise Business, you can:

• 🌍 Send money to 140+ countries at the mid-market exchange rate with no hidden fees or sneaky exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Visit https://payout-surge.live/gb/interest/%3C/a%3E to find out more)
• 🔗 Create payment links and QR codes to get paid easily
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for all your domestic and global needs.

Be Smart, Get Wise.

Register for Wise Business ✍️

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

FAQs

Can I qualify for the 5% flat tax rate as a new resident in Italy?

Possibly, but only if your activity meets the rules for the reduced startup rate under the Regime Forfettario.²

Do I need to charge VAT on invoices sent to clients outside Italy?

Not always, and the answer depends on your regime, your client type, and the service you provide.^5,10

Sources:

Sources last checked on 9 April 2026