The regime forfettario (Italian flat-rate scheme) is the preferential tax regime designed for individuals carrying on a business, an art or a profession on their own account. It is today the default regime for anyone opening a small or medium-sized VAT position, because it offers simplified taxation through a single tax, reduced accounting obligations and exclusion from VAT and IRAP. This guide, updated to the rules in force in 2026, covers in full the eligibility requirements, the calculation of income, the substitute tax, social security contributions, the disqualifying conditions, the advantages, the limits and the practical obligations, with several worked examples.
One methodological warning before we start: the structural tax figures (the 85.000 euro threshold, the rates, the coefficients) are stable and confirmed for 2026, whereas the INPS contribution figures are reset each year by a dedicated circular. The contribution figures given here come from the 2026 INPS circulars; it is nevertheless good practice to check them with your commercialista (Italian chartered accountant) when you actually run the calculation.
Who it is for and the eligibility requirements
The regime forfettario is open to individuals (professionals, craft workers, traders, self-employed people) carrying on their activity on their own account. Companies of every kind are excluded by definition. To enter and remain in the regime, the following requirements must have been met in the previous year:
Revenue or fees of no more than 85.000 euro, pro-rated where the activity started during the year. Those already trading check the previous year’s figure.
Employment and similar labour costs of no more than 20.000 euro gross a year (payments to collaborators, employees, casual work, profits paid to partners contributing labour).
Anyone starting a new activity can opt in by declaring, in the start-of-activity notification (modello AA9), that they expect to meet the requirements. It is the default regime: it applies automatically where the conditions are met, unless the taxpayer expressly elects for the ordinary regime.
How income is calculated: the profitability coefficients
The central feature of the regime is that taxable income is not calculated by deducting actual costs from revenue, but by applying to the revenue (or fees) received a flat profitability coefficient, set by law according to the ATECO business activity code. The remainder represents the flat-rate allowance for costs, regardless of the expenses actually incurred.
Taxable income = Revenue/fees received × profitability coefficient
The cash basis applies: what counts is the money actually received during the year, not the invoices issued. Here is the table of coefficients by broad activity, unchanged in 2026:
Activity group
Indicative ATECO codes
Coefficient
Food and beverage manufacturing
10 – 11
40%
Wholesale and retail trade
45, 46, 47
40%
Street trading in food products
47.81
40%
Street trading in other products
47.82, 47.89
54%
Construction and real estate
41, 42, 43, 68
86%
Commercial intermediaries
46.1
62%
Accommodation and food service
55, 56
40%
Professional, scientific, technical, healthcare, education and financial services
64-66, 69-75, 85, 86-88
78%
Other economic activities (residual)
all other codes
67%
How to read it: a consultant (coefficient 78%) who receives 40.000 euro has flat-rate taxable income of 31.200 euro; a trader (coefficient 40%) who receives 40.000 euro has taxable income of 16.000 euro. For the same cash received, the tax burden depends heavily on the coefficient of your own activity.
The substitute tax: 15% and 5%
A single substitute tax, which absorbs IRPEF, the regional and municipal surtaxes and IRAP, applies to the taxable income determined with the coefficient. There are two rates:
15% standard, applying to taxpayers on the regime in general.
5% reduced rate for new activities, available for the first five tax periods to anyone starting a new activity, provided that: no business or professional activity was carried on in the previous three years; the activity is not the mere continuation of one previously carried on as an employee or self-employed person (except for a compulsory traineeship); and, where someone else’s activity is being continued, its revenue in the previous year did not exceed 85.000 euro.
Social security contributions actually paid are deductible from taxable income before the tax is applied: the tax is therefore calculated on (flat-rate income less contributions paid during the year). This reduces the taxable base appreciably.
Social security contributions
The substitute tax concerns only taxation: INPS contributions remain payable and are, for many taxpayers on this regime, the single largest cost.
Professionals registered with the Gestione Separata
Professionals without a professional pension fund of their own contribute to the Gestione Separata INPS (the INPS separate scheme). For 2026 the rate is 26,07% for those not covered by another compulsory pension scheme (24% for those already drawing a pension or covered elsewhere). Contributions are calculated on the flat-rate taxable income, with no fixed minimum. The income ceiling for 2026 is 122.295 euro.
Craft workers and traders
Anyone carrying on a business registered with the craft workers’ or traders’ schemes pays contributions with a fixed part up to the minimum income and a percentage part on the excess. For 2026:
Item (2026)
Craft workers
Traders
Minimum annual income
18.808 euro
18.808 euro
Contribution rate
24,00%
24,48%
Minimum fixed annual contribution
about 4.521 euro
about 4.612 euro
Income ceiling
122.295 euro
122.295 euro
On the portion of income above 56.224 euro the rate rises by one point (25% and 25,48%). The fixed contribution is due even where income is low or nil: it is a minimum cost that the craft worker or trader bears in any event.
The 35% contribution reduction
Craft workers and traders on the regime forfettario can apply for a 35% reduction of their contributions (both fixed and percentage). The application is filed electronically with INPS, normally by 28 February (or on registration for new entrants). The reduction lowers the outlay but reduces the pension entitlement proportionally, and it does not apply to professionals in the Gestione Separata.
The disqualifying conditions in detail
Even where the revenue requirements are met, certain situations prevent entry into or continuation in the regime. The main ones for 2026:
Employment or similar income (including pension income) above 35.000 euro in the previous year. The threshold (raised from 30.000 to 35.000 euro) is confirmed for 2026. It does not apply where the employment ended in the previous year with no other employment or pension income in that same year.
Holding an interest in a partnership, a professional association or a family business at the same time as the individual activity.
Direct or indirect control of an S.r.l. carrying on activities connected with those of the taxpayer on the regime.
More than half of revenue coming from a current or former employer (over 50%) in the previous two years: an anti-avoidance measure against bogus self-employment.
Use of special VAT regimes or other flat-rate methods of determining income (agriculture, publishing, travel agencies, tobacco retail, etc.).
Tax residence abroad, except for EU/EEA residents earning at least 75% of their income in Italy.
The advantages of the regime
Low and predictable taxation: a single tax at 15% (or 5% for the first five years) replacing IRPEF, the surtaxes and IRAP.
No VAT charged: invoices without VAT, greater competitiveness with private customers and simpler administration.
Exemption from VAT obligations: no periodic settlements, no annual return, no reports.
No withholding tax on fees.
Simplified bookkeeping and exclusion from the ISA reliability indices.
Deductibility of the contributions paid.
The limits and the drawbacks
Actual costs cannot be deducted: this penalises anyone with high real expenses.
VAT on purchases is not deductible: it becomes a full cost.
No personal IRPEF deductions or tax credits can be set against the substitute tax (medical expenses, mortgage interest, renovation works).
Contributions are due in any case, with the burden of the fixed amount for craft workers and traders.
The 85.000 euro ceiling, which caps growth unless you change regime.
Practical obligations and electronic invoicing
Electronic invoicing is compulsory: since 2024 it has applied to everyone on the regime, with no exemption threshold. In 2026 every such taxpayer issues only electronic invoices through the SdI.
Wording on the invoice: transaction without VAT under art. 1, paragraphs 54-89, L. 190/2014, stating that no withholding tax applies.
Stamp duty of 2 euro on invoices above 77,47 euro (paid virtually, on a quarterly basis).
Income tax return: section LM of the Redditi PF form.
Payments on the F24 form: balancing payment and first payment on account by 30 June, second payment on account by 30 November.
When it really pays off: worked examples
Example 1 – A consultant with 40.000 euro (coefficient 78%, Gestione Separata, 15%)
Taxable income: 40.000 × 78% = 31.200 euro
Gestione Separata contributions: 31.200 × 26,07% = 8.134 euro (deductible)
Taxable base: 31.200 − 8.134 = 23.066 euro
Tax at 15%: 3.460 euro
Total burden: about 11.594 euro on 40.000 of cash received
With the 5% start-up rate the tax would fall to about 1.153 euro and the total burden to about 9.287 euro.
Example 2 – When it does NOT pay off: high actual costs
A professional (coefficient 78%) receives 45.000 euro but incurs 20.000 euro of actual costs:
Under the regime forfettario the taxable income is still 45.000 × 78% = 35.100 euro (actual costs are not deductible).
Under the ordinary or simplified regime it would be 45.000 − 20.000 = 25.000 euro.
Rule of thumb: when actual costs exceed the flat-rate allowance (100% less the coefficient), the regime forfettario tends to work against you. For a 78% coefficient the break-even point is around 22% of costs.
Leaving the regime and losing eligibility
Exceeding 85.000 without exceeding 100.000 euro: the regime ends from the following year.
Exceeding 100.000 euro: immediate exit during the current year, with VAT due from the transaction that breaches the threshold.
A disqualifying condition arising: the regime ends from the following year.
In summary
The 2026 regime forfettario confirms its structure: an 85.000 euro threshold, a substitute tax of 15% (5% for new activities in the first five years), income determined through ATECO coefficients, exemption from VAT and IRAP and minimal obligations, with compulsory electronic invoicing. It remains very advantageous for activities with modest costs, but it should be chosen after a tailored assessment. Studio Antolini is available to assess whether it pays off in your specific case and to handle entry, ongoing obligations and any exit.
Guide to the regime forfettario 2026
The regime forfettario (Italian flat-rate scheme) is the preferential tax regime designed for individuals carrying on a business, an art or a profession on their own account. It is today the default regime for anyone opening a small or medium-sized VAT position, because it offers simplified taxation through a single tax, reduced accounting obligations and exclusion from VAT and IRAP. This guide, updated to the rules in force in 2026, covers in full the eligibility requirements, the calculation of income, the substitute tax, social security contributions, the disqualifying conditions, the advantages, the limits and the practical obligations, with several worked examples.
One methodological warning before we start: the structural tax figures (the 85.000 euro threshold, the rates, the coefficients) are stable and confirmed for 2026, whereas the INPS contribution figures are reset each year by a dedicated circular. The contribution figures given here come from the 2026 INPS circulars; it is nevertheless good practice to check them with your commercialista (Italian chartered accountant) when you actually run the calculation.
Who it is for and the eligibility requirements
The regime forfettario is open to individuals (professionals, craft workers, traders, self-employed people) carrying on their activity on their own account. Companies of every kind are excluded by definition. To enter and remain in the regime, the following requirements must have been met in the previous year:
Revenue or fees of no more than 85.000 euro, pro-rated where the activity started during the year. Those already trading check the previous year’s figure.
Employment and similar labour costs of no more than 20.000 euro gross a year (payments to collaborators, employees, casual work, profits paid to partners contributing labour).
Anyone starting a new activity can opt in by declaring, in the start-of-activity notification (modello AA9), that they expect to meet the requirements. It is the default regime: it applies automatically where the conditions are met, unless the taxpayer expressly elects for the ordinary regime.
How income is calculated: the profitability coefficients
The central feature of the regime is that taxable income is not calculated by deducting actual costs from revenue, but by applying to the revenue (or fees) received a flat profitability coefficient, set by law according to the ATECO business activity code. The remainder represents the flat-rate allowance for costs, regardless of the expenses actually incurred.
Taxable income = Revenue/fees received × profitability coefficient
The cash basis applies: what counts is the money actually received during the year, not the invoices issued. Here is the table of coefficients by broad activity, unchanged in 2026:
Activity group
Indicative ATECO codes
Coefficient
Food and beverage manufacturing
10 – 11
40%
Wholesale and retail trade
45, 46, 47
40%
Street trading in food products
47.81
40%
Street trading in other products
47.82, 47.89
54%
Construction and real estate
41, 42, 43, 68
86%
Commercial intermediaries
46.1
62%
Accommodation and food service
55, 56
40%
Professional, scientific, technical, healthcare, education and financial services
64-66, 69-75, 85, 86-88
78%
Other economic activities (residual)
all other codes
67%
How to read it: a consultant (coefficient 78%) who receives 40.000 euro has flat-rate taxable income of 31.200 euro; a trader (coefficient 40%) who receives 40.000 euro has taxable income of 16.000 euro. For the same cash received, the tax burden depends heavily on the coefficient of your own activity.
The substitute tax: 15% and 5%
A single substitute tax, which absorbs IRPEF, the regional and municipal surtaxes and IRAP, applies to the taxable income determined with the coefficient. There are two rates:
15% standard, applying to taxpayers on the regime in general.
5% reduced rate for new activities, available for the first five tax periods to anyone starting a new activity, provided that: no business or professional activity was carried on in the previous three years; the activity is not the mere continuation of one previously carried on as an employee or self-employed person (except for a compulsory traineeship); and, where someone else’s activity is being continued, its revenue in the previous year did not exceed 85.000 euro.
Social security contributions actually paid are deductible from taxable income before the tax is applied: the tax is therefore calculated on (flat-rate income less contributions paid during the year). This reduces the taxable base appreciably.
Social security contributions
The substitute tax concerns only taxation: INPS contributions remain payable and are, for many taxpayers on this regime, the single largest cost.
Professionals registered with the Gestione Separata
Professionals without a professional pension fund of their own contribute to the Gestione Separata INPS (the INPS separate scheme). For 2026 the rate is 26,07% for those not covered by another compulsory pension scheme (24% for those already drawing a pension or covered elsewhere). Contributions are calculated on the flat-rate taxable income, with no fixed minimum. The income ceiling for 2026 is 122.295 euro.
Craft workers and traders
Anyone carrying on a business registered with the craft workers’ or traders’ schemes pays contributions with a fixed part up to the minimum income and a percentage part on the excess. For 2026:
Item (2026)
Craft workers
Traders
Minimum annual income
18.808 euro
18.808 euro
Contribution rate
24,00%
24,48%
Minimum fixed annual contribution
about 4.521 euro
about 4.612 euro
Income ceiling
122.295 euro
122.295 euro
On the portion of income above 56.224 euro the rate rises by one point (25% and 25,48%). The fixed contribution is due even where income is low or nil: it is a minimum cost that the craft worker or trader bears in any event.
The 35% contribution reduction
Craft workers and traders on the regime forfettario can apply for a 35% reduction of their contributions (both fixed and percentage). The application is filed electronically with INPS, normally by 28 February (or on registration for new entrants). The reduction lowers the outlay but reduces the pension entitlement proportionally, and it does not apply to professionals in the Gestione Separata.
The disqualifying conditions in detail
Even where the revenue requirements are met, certain situations prevent entry into or continuation in the regime. The main ones for 2026:
Employment or similar income (including pension income) above 35.000 euro in the previous year. The threshold (raised from 30.000 to 35.000 euro) is confirmed for 2026. It does not apply where the employment ended in the previous year with no other employment or pension income in that same year.
Holding an interest in a partnership, a professional association or a family business at the same time as the individual activity.
Direct or indirect control of an S.r.l. carrying on activities connected with those of the taxpayer on the regime.
More than half of revenue coming from a current or former employer (over 50%) in the previous two years: an anti-avoidance measure against bogus self-employment.
Use of special VAT regimes or other flat-rate methods of determining income (agriculture, publishing, travel agencies, tobacco retail, etc.).
Tax residence abroad, except for EU/EEA residents earning at least 75% of their income in Italy.
The advantages of the regime
Low and predictable taxation: a single tax at 15% (or 5% for the first five years) replacing IRPEF, the surtaxes and IRAP.
No VAT charged: invoices without VAT, greater competitiveness with private customers and simpler administration.
Exemption from VAT obligations: no periodic settlements, no annual return, no reports.
No withholding tax on fees.
Simplified bookkeeping and exclusion from the ISA reliability indices.
Deductibility of the contributions paid.
The limits and the drawbacks
Actual costs cannot be deducted: this penalises anyone with high real expenses.
VAT on purchases is not deductible: it becomes a full cost.
No personal IRPEF deductions or tax credits can be set against the substitute tax (medical expenses, mortgage interest, renovation works).
Contributions are due in any case, with the burden of the fixed amount for craft workers and traders.
The 85.000 euro ceiling, which caps growth unless you change regime.
Practical obligations and electronic invoicing
Electronic invoicing is compulsory: since 2024 it has applied to everyone on the regime, with no exemption threshold. In 2026 every such taxpayer issues only electronic invoices through the SdI.
Wording on the invoice: transaction without VAT under art. 1, paragraphs 54-89, L. 190/2014, stating that no withholding tax applies.
Stamp duty of 2 euro on invoices above 77,47 euro (paid virtually, on a quarterly basis).
Income tax return: section LM of the Redditi PF form.
Payments on the F24 form: balancing payment and first payment on account by 30 June, second payment on account by 30 November.
When it really pays off: worked examples
Example 1 – A consultant with 40.000 euro (coefficient 78%, Gestione Separata, 15%)
Taxable income: 40.000 × 78% = 31.200 euro
Gestione Separata contributions: 31.200 × 26,07% = 8.134 euro (deductible)
Taxable base: 31.200 − 8.134 = 23.066 euro
Tax at 15%: 3.460 euro
Total burden: about 11.594 euro on 40.000 of cash received
With the 5% start-up rate the tax would fall to about 1.153 euro and the total burden to about 9.287 euro.
Example 2 – When it does NOT pay off: high actual costs
A professional (coefficient 78%) receives 45.000 euro but incurs 20.000 euro of actual costs:
Under the regime forfettario the taxable income is still 45.000 × 78% = 35.100 euro (actual costs are not deductible).
Under the ordinary or simplified regime it would be 45.000 − 20.000 = 25.000 euro.
Rule of thumb: when actual costs exceed the flat-rate allowance (100% less the coefficient), the regime forfettario tends to work against you. For a 78% coefficient the break-even point is around 22% of costs.
Leaving the regime and losing eligibility
Exceeding 85.000 without exceeding 100.000 euro: the regime ends from the following year.
Exceeding 100.000 euro: immediate exit during the current year, with VAT due from the transaction that breaches the threshold.
A disqualifying condition arising: the regime ends from the following year.
In summary
The 2026 regime forfettario confirms its structure: an 85.000 euro threshold, a substitute tax of 15% (5% for new activities in the first five years), income determined through ATECO coefficients, exemption from VAT and IRAP and minimal obligations, with compulsory electronic invoicing. It remains very advantageous for activities with modest costs, but it should be chosen after a tailored assessment. Studio Antolini is available to assess whether it pays off in your specific case and to handle entry, ongoing obligations and any exit.
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