The 2026 Budget Law containing the State budget for the 2026 financial year and the multi-year budget for the three-year period 2026-2028 was published in the Official Gazette no. 301 of 30 December 2025, Ordinary Supplement no. 42/L. the 2026 Budget Law containing the State budget for the 2026 financial year and the multi-year budget for the three-year period 2026-2028, definitively approved by the Chamber of Deputies in its session of 30 December 2025, with 216 votes in favour, 126 against and 3 abstentions. Below is a brief summary of the most significant changes.
IRPEF tax rates
There will be a reduction in the IRPEF tax rate from 35% to 33% for income brackets between €28,000 and €50,000, and a mechanism aimed at neutralising the tax benefit, limited to those with a taxable income above €200,000, with a reduction in deductions of €400.00.
There will be a reduction in the IRPEF tax rate from 35% to 33% for income brackets between €28,000 and €50,000, and a mechanism aimed at neutralising the tax benefit, limited to those with a taxable income above €200,000, with a reduction in deductions of €400.00.
Tax relief on dividends paid to employees
Also for 2026, dividends paid to employees and deriving from shares allocated by companies in lieu of performance bonuses will be calculated in the taxable income base at a rate of 50%, up to a limit of €1,500. Tax relief is therefore introduced on amounts paid to employees as:
Contract renewal → a 5% substitute tax is applied to salary increases paid in 2026 to employees whose income in 2025 does not exceed €33,000 (for renewals signed in 2024–2026);
- Productivity bonuses → a 1% substitute tax is applied to performance bonuses/profit sharing for the years 2026 and 2027. The maximum amount that can be claimed is increased from €3,000 to €5,000;
- Additional benefits → a 15% substitute tax is applied to bonuses and allowances for night work, holiday work, weekly rest periods and shift allowances with other emoluments related to shift work, up to a limit of €1,500.
Contract renewals exempt from tax
A reduced tax rate of 5% is envisaged for salary increases paid to private sector employees in 2026 in implementation of contract renewals signed between 2024 and 2026. The rule applies to employees earning no more than €33,000 in 2025.
Tax exemption for electronic meal vouchers
The value of electronic meal vouchers up to a total amount of €10 per day is exempt from taxation. The threshold for paper meal vouchers remains unchanged at €4.
Short-term rentals: three properties trigger VAT registration requirement
For short-term rentals of multiple properties, starting from the third property, the related income is presumed to be earned as a result of entrepreneurial activity.
Therefore, for those who rent properties with contracts of less than 30 days, the presumption of entrepreneurial activity becomes more stringent: the obligation to register for VAT applies to those who, during the year, rent out at least three properties on a short-term basis (and no longer five as in the past).
Short-term rentals are “contracts for the rental of residential properties for a period not exceeding 30 days, including those that provide linen and cleaning services, entered into by individuals, outside the exercise of business activities, directly or through persons engaged in real estate brokerage or persons who manage online portals connecting persons seeking property with persons who have property units to let.” These contracts are eligible for the flat-rate tax at a rate of 26%. For a property intended for short-term rental, the rate will be 21%.
Building bonuses
For 2026, the deduction for building renovation remains at 36% (renovation, energy saving, anti-seismic measures) and is increased to 50% for work carried out on the owner’s main residence.
As regards the furniture bonus, there will be a 50% income tax deduction for the purchase of furniture and large appliances if carried out as part of building work. The furniture bonus will also be extended throughout 2026. For this relief, the subsidised work must have started on or after 1 January 2025. The income tax deduction is 50%. The maximum eligible expenditure is €5,000.
Ecobonus 36 – 50%
Confirmed for 2026 with percentages of 50% for expenses incurred by the owner for their main residence and 36% for investments in other properties. From 2027, there will be a reduction to 36% for the main residence and 30% for other properties.
Flat-rate tax for employees: maximum income of €35,000.
The increase from €30,000 to €35,000 in the maximum income limit for employees eligible for the flat-rate tax has been confirmed for 2026. Income must be verified in relation to the previous year, and verification is irrelevant if the employment relationship has ended.
Tobin Tax
From 1 January 2026, there will be an increase in taxes on financial transactions, Article 1, paragraphs 491–495, Law No. 228/2012, both with regard to the transfer of ownership of shares and other equity instruments and with regard to other frequent trading in financial instruments. The tax on derivative contracts remains unchanged.
Change in the instalment payment of capital gains on company assets
From the 2026 tax period onwards, capital gains on business assets can no longer be taxed in instalments. It is still possible to pay capital gains realised on the sale of businesses or business units in instalments over a maximum of five tax periods if they have been owned for at least three years for the sale of exclusive rights to use the athlete’s performance if the rights have been owned for at least two years and within the limits of the proportion corresponding to the cash consideration. The period of ownership must be at least two years and the rights must be used exclusively for the athlete’s performance. exclusive use of an athlete’s services, if the rights have been held for a period of not less than two years and within the limits of the portion proportionally corresponding to the cash consideration. The tax period is subsequent to that in progress on 31 December 2025.
Regions and local authorities may introduce amnesties and scrappage schemes
Both regions and local authorities can define their contributions in a facilitated manner.
Extraordinary release of tax reserves
With a 10% substitute tax paid in the tax return, it is possible to make an extraordinary release of tax-deferred reserves existing in the financial statements for the year ending 31 December 2024 that remain at the end of the financial year ending 31 December 2025.
Therefore, tax-deferred reserves existing in the financial statements closed on 31 December 2024 for the amount remaining at the end of the financial year ending on 31 December 2025 can be released by paying a substitute tax on income tax and IRAP.
Upon redemption, the reserves take on the fiscal nature of profit reserves, distributable to shareholders.
Dividends and capital gains, taxation tightened
For distributions of profits and reserves approved from 1 January, the 95% tax exemption regime for dividends becomes conditional upon direct shareholdings of at least €500,000, without prejudice to the other requirements set out in Article 87 of the Italian Tax Code (Tuir).
A corresponding change is envisaged for the regime governing dividends received by sole proprietors. In the absence of the ‘minimum’ shareholding requirement, dividends are taxed in full. The new dividend regime applies to distributions of profits or reserves approved from 1 January 2026 and to the sale of shareholdings acquired from 1 January 2026.
Treasury shares, stock opinions and intangible assets
For the year 2026, a tax regime is defined for the resale of treasury shares (taxation of the difference between the sale price and the purchase cost of treasury shares), the deductibility of expenses related to stock option plans (the deductibility regime at the time of actual allocation of shares is extended to cash-settled share-based payment transactions) and the deductibility of the cost of trademarks, goodwill and intangible assets with indefinite useful lives.
New Sabatini law increased for micro-enterprises and SMEs.
Productive investments by micro, small and medium-sized enterprises are favoured. The authorisation is supplemented by €200 million for 2026 and €450 million for 2027.
The tax cost of shareholdings is recalculated.
The substitute tax rate for the redetermination of the purchase cost of traded and non-traded shareholdings is increased to 21% (previously 18%).
The increase will take effect from revaluations carried out from 1 January 2026. The tax is payable on the appraised value or the normal value. Under the ordinary regime, a substitute tax of 26% is payable on capital gains. The substitute tax rate for the revaluation of agricultural and building land remains unchanged.
Supplementary pensions, more deductible contributions
The maximum amount of contributions paid by employees and employers to supplementary pension schemes that can be deducted has increased from €5,164.57 to €5,300 per year. This new amount also applies to the extra deduction over twenty years for those who started their first job in 2007.
E-commerce, new standards for packaging
For those who shop online from 12 August 2026, limits on excessive packaging will come into force: empty space in packages cannot exceed 50% of the total volume. There will also be a ban on the use of permanent chemicals in packaging that comes into contact with food.
Hyper-amortisation for business investments
Investments by companies in new tangible and intangible assets are facilitated (Annexes IV and V to the budget). In addition, the previously envisaged surcharge for ‘green’ investments has been eliminated and a new eligibility condition has been introduced, requiring investments to be made in ‘made in EU’ assets. The periods for investments made between 1 January 2026 and 30 September 2028 have also been extended.
The goods must therefore be produced in an EU Member State or in a country that is party to the Agreement on the European Economic Area and be destined for production facilities located within the territory of that country. The same relief applies to investments in new tangible assets used in the operation of the business for the self-production of energy from renewable sources for self-consumption.
The surcharges are equal to: • 180% for investments up to €2.5 million, • 100% for investments over €2.5 million and up to €10 million, • 50% for investments over €10 million and up to €20 million.
We would like to point out that this benefit can be combined with other subsidies financed with national and European resources covering the same costs, provided that the support does not cover the same share of the costs of the individual investments in the innovation project and does not result in the costs incurred being exceeded.
Single ZES and ZLS tax credits
The tax credit in the Single Special Economic Zone (ZES Unica) is extended for the years 2026, 2027 and 2028 to the areas of the Marche and Umbria regions. Companies that have submitted a supplementary communication to the Revenue Agency requesting access to the contribution are entitled to an additional contribution (a tax credit) equal to 14.6189% of the amount of the tax credit requested in this communication, unless they have already obtained the Transition 5.0 tax credit.
The tax credit for companies in Simplified Logistics Zones (ZLS) has also been extended to 2026, 2027 and 2028.
Zes Unica dedicated to the agricultural sector
For the period from 1 January to 15 November 2026, the tax credit for investments in the single SEZ for the primary production of agricultural products, fishing and aquaculture has been extended. The measure involves an investment of €50,000,000.
Casual work in agriculture: stabilisation
Casual work in agriculture in 2026 is permitted within the limit of 45 days. This stabilises the measure that had already been planned for 2023.
Industry 4.0
For businesses, a fund of €1.3 billion has been established for the whole of 2026. The fund is allocated for investments in new capital goods that are functional to technological and digital transformation, to be used exclusively as compensation, by submitting the F24 form during 2026.
Cryptocurrencies, capital gains at 33%. 26% on tokens in euros
The standard tax rate on capital gains relating to crypto assets rises to 33%. The 2026 budget provides that the 26% rate will apply to other income deriving from tokens denominated in euros.
Design credit raised to 10%
For design and aesthetic creation activities, the tax credit increases from 5% to 10%, without prejudice to the maximum annual limit of €2 million.
Therefore, for 2026, the bonus is equal to 10% of the relevant calculation basis, up to an annual limit of €2 million, adjusted on an annual basis in the case of a tax period of less than or more than 12 months. The bonus can be used in a single annual instalment.
Tax credit for energy-intensive businesses
For energy-intensive businesses, financial benefits are introduced through the establishment of a tax credit that can be used as compensation. These must be businesses that are included in the lists of natural gas-intensive businesses established by the Energy and Environmental Services Fund. These must be investments in new tangible and intangible assets, instrumental to the operation of the business, as indicated in Annexes A and B of Law No. 232/2016, made in 2025. The maximum expenditure limit is €10 million for the year 2026. A ministerial decree will define the criteria and implementation methods.
Legal interest rate falls to 1.6% The legal interest rate in 2026 will be reduced to 1.6%.
This will have no impact on the coefficients used to calculate usufruct and annuities.
Automated VAT settlement if no declaration is submitted
In the event of failure to submit a VAT return, the Revenue Agency may settle the tax using automated procedures, drawing on data from electronic invoices, electronic payments and periodic settlement data communications.
If a tax liability arises, the outcome of the assessment is communicated to the taxpayer, who will have 60 days to report any items not considered or to be paid. Please note that the penalty for failure to file a return is 120% of the tax due. If the amounts are paid within 60 days of receipt of the amicable communication, the penalty is reduced to 1/3, thus becoming 40%. There is no provision for deferral of payment, nor is it possible to make payments by way of compensation. The new provision applies to years for which, as of 1 January 2026, the assessment period has not yet expired.
Low-value parcels – contribution
A fee of €2 is imposed on shipments of goods from non-EU countries with a declared value not exceeding €150. This is to cover administrative costs related to customs formalities. The Customs Agency collects this fee upon final importation of such goods.
Fixed tax raised to €300,000
The substitute tax on foreign income earned by individuals who transfer their tax residence to Italy from 2026 rises to €300,000 and increases to €50,000 for each family member who joins the scheme.
Credit agreements – stamp duty
An exemption from stamp duty is provided for certain credit agreements entered into from 20 November 2026, namely: • Credit agreements for amounts of less than EUR 200, • Credit agreements where the payment of interest/other charges is excluded,
- Credit agreements where the consumer pays insignificant fees if repayment is to take place within three months of the use of the sums.
Overtime and night work exempt from taxation
For the year 2026, a 15% tax relief is planned on sums paid within the annual limit of €1,500 as bonuses and allowances for night work, work on public holidays and weekly rest days, and additional emoluments related to shift work.
Facilitated transition from full-time to part-time employment
A 100% contribution exemption is provided for a maximum period of 24 months, up to a limit of €3,000 per year. This applies to workers with at least three children living with them until the youngest child reaches the age of ten. There are no age limits for children with disabilities.
Tax free shopping
For the sale of goods to persons domiciled and resident outside the European Union, simplifications have been introduced with regard to VAT. We are talking about VAT relief on the sale of goods intended for personal or family use for persons domiciled and resident outside the EU.
Within 120 days of the entry into force of this law, the Director of the Customs Agency may issue a measure establishing procedures to simplify the response to requests for VAT refunds upon exit from the customs territory. There will be a single validation process for all invoices issued electronically by the transferor and made out to the same transferee.
Tax credit tailored to agricultural businesses
A tax credit of 40% is available for investments in new tangible and intangible assets for the period 1 January 2026 to 28 September 2028. Capital goods for the primary production of agricultural, fishery and aquaculture products are eligible for relief. Resources of €2.1 million have been allocated for each of the three years.
Obligation to declare cryptocurrencies in the ISEE
From 2026, movable assets will include: current accounts and bank or financial deposits held abroad, cryptocurrencies and other digital assets owned by the household, and remittances abroad. The technical aspects will be defined by an ISEE Regulation.
Scrapping – quinquies
For debts transferred to the collection agency (ranging from 1 January 2000 to 31 December 2023 resulting from the non-payment of taxes reported in annual tax returns and liquidation activities or resulting from the non-payment of social security contributions due to INPS), a facilitated settlement is provided for, excluding those requested after assessment or if they result from violations of the Highway Code. These debts can be settled by paying the principal amounts and the amounts accrued as reimbursement of expenses for enforcement procedures and notification of the payment notice.
The sums entrusted to the collection agent as interest and penalties and additional sums and those accrued as surcharges are not payable.
The following are not included in the scrapping scheme: charges arising from executive assessments, assessments of value for registration tax purposes, settlement notices, tax credit recovery notices and separate penalty notices. The online application to access the scheme must be submitted by 30 April 2026, indicating the number of instalments chosen. The collection agent will settle the amounts payable by 30 June 2026. Payment must be made by 31 July 2026. Payment can be made in up to 54 equal bimonthly instalments with interest at 3% per annum starting from 1 August 2026.
If the single instalment or two instalments, even if not consecutive, or the last instalment is not paid, the instalment plan will be cancelled and the debt subject to settlement will re-emerge. There is no grace period for late payments of 5 days.
Furthermore, in the application, the taxpayer will also waive any pending legal proceedings. Once the application has been submitted, the taxpayer may request that the proceedings be suspended pending settlement of the amounts and payment of the first instalment. The proceedings will be terminated once the first instalment has been paid, and any judgments already filed will cease to have effect.
Horizontal compensation
Horizontal or external offsetting is prohibited if there are expired roles for an amount exceeding €50,000. The same rule applies to excess credits due compared to debts entered in the register. On the other hand, it does not apply if there are outstanding deferrals or if an application for scrapping the roles has been submitted. What has been changed is the threshold (previously set at €100,000). The existing regulations remain unchanged.
Seizure
In order to carry out even more targeted analyses with a view to initiating enforcement proceedings against third parties, the Revenue Agency may access data on payments resulting from the electronic invoicing system, including the electronic transmission of invoices issued in the previous six months by debtors registered in the tax roll. Seizure may proceed once the agent receives the amount invoiced to the same customer.
Cash for foreign tourists
The threshold above which retailers and similar entities, as well as travel agencies, must report cash payments received for tourism-related transactions from non-residents in Italy has been raised from €1,000 to €5,000.
Payment block for professionals
Starting from payments due on 15 June 2026, the block on payments exceeding €5,000 will no longer apply.
For sums owed to professionals, the minimum quantitative limit for the amount entered in the register that justifies the payment freeze and seizure from third parties will no longer apply. Even for amounts below this threshold, public administrations are prohibited from paying freelancers for the work they have done, for sums owed including arrears and enforcement costs.
Write-down of securities recorded under current assets
For the financial years 2025 and 2026, it is possible to value securities recorded under current assets based on their carrying amount in the financial statements for those who do not adopt international accounting standards.
Permanent losses are excluded. If this option is exercised, an unavailable reserve of profits must be allocated in an amount equal to the difference between the values recorded in application of the option and the relevant market values at the end of the reference period, net of tax.
TFR
From 1 January, employers with more than 50 employees are required to deposit TFR (severance pay) into the INPS Fund. For the 2026-2027 biennium, the threshold must not be less than 60. From 1 July, automatic enrolment in supplementary pension schemes is planned for all new hires. Automatic enrolment applies to the pension scheme provided for in agreements or in the CCNL (National Collective Labour Agreements). If there is more than one pension scheme, the supplementary scheme will be the one with the highest number of members in the company. Employees will have 60 days to opt out or choose a different supplementary fund.
The Firm Carone remains available for any clarifications in this regard.