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Income Tax

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Paying income tax in Italy is expensive. IRPEF (Imposta sui redetti delle persone fisiche) is a progressive tax and has a low starting threshold;

  • Up to €15000 it’s charged at 23%
  • €15001 to €29000 at 29%
  • €29001 to €32600 the rate is 31%
  • €32601 to €70000
  • €39% €70001 and above the rate rises to 45%

This income tax doesn’t just relate to earned incomes or salaries its also levied on the presumed value of your house. The rate varies depending on the region and city and there are allowances for dependent spouses and children. There are also allowances for medical bills, mortgage interest, university fees and life assurance. Tax is charged PAYE and is adjusted the following year. If you are a self-employed worker in Italy, you’ll be partly taxed at source and partly on what you declare. It is advisable to get a commercialista who will handle your tax affairs for you. You will also have to pay social security contributions of approximately 10% of your income.

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