Question 1

Cadastral income

Accepted Answer

Cadastral Income (rendita catastale)

The cadastral income is a fiscal value in Italy assigned to every real estate unit, specifically both buildings (fabbricati) and land (terreni). It does not represent the actual, real income generated by a property, but rather defines the normally average achievable income that a real estate unit should be capable of generating.

The cadastral income plays a central role in the taxation of real estate. It is crucial for:

Municipal real estate taxes (imposte municipali degli immobili) – based on this, the basis for calculating the municipal real estate tax IMU or GIS (Autonomous Province of Bolzano) and ILIA (Friuli Venezia Giulia Region) is determined.
The cadastral value (valore catastale) – this is derived from the cadastral income and forms the assessment basis for inheritance and donation taxes as well as mortgage and cadastral taxes.
The taxation of income from property (redditi fondiari) – it is used for the determination of income from property.

Determination of cadastral income for buildings

The cadastral income is determined by the responsible cadastral offices (uffici del catasto). Two factors are decisive here:

The size (consistenza catastale) – depending on the cadastral category, it is expressed in different units of measurement:
- Category A (residential units and offices): in rooms (vani)
- Category B (buildings with a social or community character, e.g., schools, hospitals, or libraries): in cubic meters (m³)
- Category C (buildings for commercial or diverse activities, e.g., shops, garages, or cellars): in square meters (m²)
- Category D (buildings with a special purpose, e.g., factories, hotels, or industrial facilities): in square meters (m²)
The valuation rate (tariffa d'estimo) – this is a numerical coefficient created by the cadastral offices. This varies depending on the location of the property and the typology or customary use (cadastral category or class).

The cadastral class (classe catastale) serves to further differentiate objects within the same cadastral group by taking into account, for example, the amenities and the size of the rooms.

For real estate units with a special purpose (Group D), the determination of the cadastral income is not carried out using standard tariffs, but through a direct appraisal by the responsible cadastral office.

Determination of cadastral income for land

The cadastral income for land is calculated differently than for buildings. For every plot of land used for agriculture, there are two values:

The ownership income (reddito dominicale) – this refers to the income attributed to the mere ownership of the land.
The agricultural income (reddito agrario) – this refers to the income attributed to the cultivation of the soil.

For both the ownership income and the agricultural income, there are officially determined valuation approaches (tariffe di estimo) per hectare. These depend on the type of use (qualità di coltura) of the land (e.g., grassland, forest, fruit growing) and the quality (classe) of the soil.

The ownership income and the agricultural income result from the multiplication of the land area by the respective valuation approaches.

Question 2

Cadastral value

Accepted Answer

The cadastral value (valore catastale) is a central fiscal value in Italy used for calculating taxes and duties related to the ownership and acquisition of real estate.

It is not intended to reflect the market value of a property, but rather serves as the tax assessment base on which the rates of various property-related taxes are applied. These include registration tax, mortgage and cadastral tax, gift and inheritance tax, as well as municipal property tax.

The cadastral value is calculated on the basis of the cadastral income of the respective property, which can be obtained from the cadastral extract.

For the calculation, the cadastral income must first be increased by 5 %. The revalued cadastral income is then multiplied by the following coefficients depending on the cadastral category:

Cadastral category	Description	Coefficient
A and C (except A/10 and C/1)	Dwellings and their appurtenances	120 or 110 in case of main dwellings
B	Public buildings such as schools, libraries or museums	140
A/10 and D	Offices, industrial buildings, hotels	60
C/1 and E	Shops and special properties such as bridges, churches	40.80

Example

From the cadastral extract of an office property in category A/10, a cadastral income of € 2,912.82 is shown. The cadastral value is then determined as follows:

first, the cadastral income is increased by 5 %, i.e. € 2,912.82 × 1.05. The resulting revalued cadastral income of € 3,058.46 is then multiplied by the coefficient of 60 for category A/10.

This results in a cadastral value for the office of € 3,058.46 × 60 = € 183,507.66.

Question 3

Corporate Income Tax IRES in Italy (Imposta sul Reddito delle società))

Accepted Answer

The Corporate Income Tax IRES (Imposta sul Reddito delle Società)

The IRES (Imposta sul Reddito delle Società) is the corporate income tax in Italy. It is a proportional tax applied to the income of corporations and certain other entities. The IRES replaced the former IRPEG and is regulated by the Consolidated Income Tax Act (TUIR).

Who is subject to IRES?

IRES is payable by the following entities:

Corporations (SRL, SPA).
Cooperatives, mutual insurance companies, European companies and European cooperative societies based in Italy.
Public and private entities based in Italy, including consortia, trusts, collective investment schemes and non-profit organizations.
Trusts not based in Italy, but only for income generated in Italy.

Companies resident in Italy must pay IRES on their worldwide income. Bilateral double taxation treaties are in place to prevent double taxation. If a foreign company establishes a permanent establishment in Italy under tax law, the profits generated there are also taxable in Italy.

Partnerships and freelancers are not subject to IRES, as their income is taxed under IRPEF (personal income tax).

The IRES Tax Rate

The standard IRES rate for 2025 is 24%. This flat rate is applied to the company's taxable income.

Italian tax legislation has been updated several times in recent years to harmonize and modernize it in line with other major EU countries. Starting from 2025, a reduction of 4% is possible through the introduction of the “IRES premiale”.

Historical IRES Rates by Year

IRES has undergone several changes over the years to harmonize and modernize the Italian tax system.

Historical IRES tax rates in Italy:

Year	IRES / IRPEG Rate
2000	37% (IRPEG)
2001–2002	36% (IRPEG)
2003	34% (IRPEG)
2004–2007	33%
2008–2016	27.5%
2017–2023	24%
From 2024	24%

Until the end of 2003, the former IRPEG was in force, with a rate of 37% in 2000, then gradually reduced: 36% in 2001–2002, 34% in 2003. From 2004, IRES replaced IRPEG with a flat rate of 33% until 2007. Between 2008–2016 the rate was reduced to 27.5%. Since 2017 the rate has been 24% and remains valid for 2024 and 2025.

How is the IRES tax base calculated?

The IRES tax base starts from the statutory net income of the company, derived from business activities.

The process includes the following steps:

Starting point: accounting result – Based on the profit and loss statement, reflecting the company’s revenues and expenses.
Mandatory tax adjustments – Fiscal corrections required by law are applied to the accounting result. These may increase or decrease the taxable base and are known as “plus/minus adjustments”. Examples include non-deductible expenses, amortization, or provisions.
Further tax deductions – Additional deductions may apply, such as the ACE (notional interest deduction) or loss carryforwards:
- Tax losses from the first three tax years can be carried forward indefinitely and fully offset against future taxable income.
- Losses from the fourth year onward can also be carried forward without time limit, but may only offset up to 80% of the taxable income of future years.

After these adjustments, the final tax base is determined, to which the 24% IRES rate is applied to calculate the tax payable.

Practical example:

Revenues: €100,000
Deductible costs: €30,000
Taxable income: €70,000
Tax due (24%): €16,800

How and when is IRES paid?

IRES is paid electronically via the F24 form. Payment is divided into two advance payments and a final balance, based on the previous year’s tax.

Payment deadlines and prepayments:

First prepayment: Due by June 30 of the current year, equal to 40% of the prior year’s tax (50% for ISA subjects).
Second prepayment: Due by November 30, equal to 60% of the prior year’s tax (50% for ISA subjects).
Balance: Due by June 30 of the following year, based on actual income.

For example, by June 30, 2025, both the IRES balance for 2024 and the first prepayment for 2025 must be paid. The second prepayment is due by November 30, 2025.

Distinction between IRES and other taxes

IRES vs. IRAP: IRES taxes the net income of companies, while IRAP (Regional Tax on Productive Activities) is a regional tax based on net production value, excluding certain costs such as employee and financial expenses.
IRES vs. IRPEF: IRES applies to corporate income with a flat 24% rate, regardless of profit level. IRPEF is a progressive personal income tax, with rates increasing based on income brackets.

Question 4

Duties and Liabilities of Directors in Italian Srl Companies

Accepted Answer

Duties and Liabilities of Directors in Italian Limited Liability Companies (Srl)

Q: Tax incentive for equity increases (ACE)

Tax incentive for equity increases (ACE) In Italy, up until the 2023 tax year, the ACE tax incentive was available. This allowed companies applying double-entry bookkeeping to claim an additional deduction from their taxable income, based on the increase in equity compared to 31.12.2010. For the calculation of the equity increase, both retained earnings and capital contributions, including shareholders’ contributions to cover possible losses, could be considered. The equity increase was multiplied by a notional interest rate of 1.3%, and the resulting amount could be deducted from the taxable income base. Limited to the year 2021, an alternative to ACE was introduced: the Super-ACE. Further details can be found below. Super ACE Introduced as part of Covid-19 support measures, it allowed taxpayers eligible for ACE to apply, on the equity increase of 2021, a special deduction of 15% from the 2021 taxable income base. The benefit was subject to the condition that the 2021 equity increase could not be withdrawn in the following two years, 2022 and 2023.

The directors (amministratori) of an Italian limited liability company (Srl) bear a central responsibility for the management, control, and crisis prevention of the company. Their duties are governed by the Italian Civil Code (Codice Civile), particularly in Articles 2475 et seq. and 2476 of the Civil Code.

1. Organizational forms of management

The management of an Srl can be structured in different ways:

Sole director (amministratore unico)
Several directors with individual signing authority (amministrazione disgiuntiva)
Several directors with joint signing authority (amministrazione congiuntiva)
Board of directors (consiglio di amministrazione) as a collective body

Depending on the structure, the decision-making and representation powers vary. In a board of directors, representation is usually held by the president or the delegated directors.

2. Main duties of directors

The directors represent the company externally and are responsible for its ordinary and extraordinary management. They must:

establish an adequate organizational, administrative, and accounting structure;
implement early warning systems for identifying business crises;
promptly adopt appropriate restructuring measures in the event of a crisis;
prepare the annual financial statements and – where required by law – a half-year report;
fulfill the statutory bookkeeping and filing obligations.

3. Liability in case of losses

If the company’s share capital decreases significantly, specific obligations apply under Articles 2482-bis and 2482-ter of the Civil Code.

a) Loss exceeding one third of the share capital (Art. 2482-bis Civil Code)

When a loss exceeding one third of the company’s share capital is ascertained, the director must convene a shareholders’ meeting within 30 days.

The meeting may decide to:

carry the loss forward to the following financial year;
restructure the company’s debts;
have shareholders make capital contributions to cover the losses;
evaluate a merger or transformation.

If the loss persists in the following year, a reduction or recapitalization of the share capital becomes mandatory.

b) Loss below the statutory minimum capital (Art. 2482-ter Civil Code)

If the capital falls below €10,000, the company must either:

make additional capital contributions;
reduce and simultaneously increase the capital;
transform into a company form without a minimum capital requirement; or
resolve to liquidate the company.

4. Liability of directors (Art. 2476 Civil Code)

Directors are jointly and severally liable towards the company, its shareholders, and third parties for damages resulting from intentional or negligent breaches of their duties.

They are particularly liable for:

violations of laws or the company’s articles of association;
inadequate supervision of delegated functions;
impairment of the company’s assets.

An action for liability may be brought by the company, the shareholders, or the creditors if the company’s assets are insufficient to satisfy their claims.

Criminal liability always remains personal to the director. Each shareholder may, in the event of serious irregularities, bring an action for liability and request the dismissal of the director.

5. Duties of directors under the Code of Business Crisis and Insolvency

With the entry into force of the Code of Business Crisis and Insolvency (Codice della crisi d’impresa e dell’insolvenza, Legislative Decree No. 14/2019), the responsibilities of directors in the field of crisis prevention and management have been significantly expanded. The aim is to identify business crises at an early stage and adopt appropriate measures to prevent insolvency.

In addition to the obligations already mentioned, directors must carry out the following activities:

implement internal early warning systems (indicatori della crisi);
take appropriate restructuring measures at the first signs of financial distress;
where applicable, use the legal instruments provided for the out-of-court settlement of crises (e.g. composizione negoziata della crisi).

Failure or delay in taking such measures may be considered a breach of duty and may entail both civil and criminal consequences. The crisis legislation thus emphasizes the preventive responsibility of directors to ensure business continuity and protect the interests of creditors.

Frequently Asked Questions (FAQ)

1. Who qualifies as a director of an Italian Srl?

Directors (amministratori) are the persons responsible for managing and representing the Srl, such as the sole director or the board of directors.

2. What are the main duties of directors?

They must ensure proper organization and accounting, identify risks early, and take appropriate measures to manage financial crises.

3. When are directors personally liable?

Directors are personally liable for breaches of duty, violations of law, or gross negligence, both civilly and in some cases criminally.

4. What happens if more than one third of the capital is lost?

The director must convene a shareholders’ meeting within 30 days to decide on actions such as recapitalization or liquidation.

5. What does the Business Crisis Code require from directors?

It requires directors to implement early warning systems and adopt restructuring measures to prevent insolvency.

Question 5

FAQ: Transfer of an employee to Italy

Accepted Answer

Especially since the Covid-19 pandemic, working from home has become an established and proven work mode. Hence, there is no longer need for a physical workplace. Consequently, more and more employees of German companies move their residence abroad (e.g. to Italy) and continue to work remotely for their employer.

Question: In case of transfer of an employee's residence to Italy, is it possible to file a posting communication?

Answer: No, if employees transfer their residence to Italy and continue to work for the German company, no posting communication in the classic sense of that term may be filed. On the one hand, the requirement of having an employer in Italy (company incorporated under Italian law) is not met. On the other hand, employees are not considered to be posted, if they are resident in the country they work in.

Instead, the company and the employee shall be registered in Italy for payroll processing purposes in accordance with Italian law and for the purposes of paying social security contributions and taxes in Italy.

Question: Which requirements shall be met for the registration of a foreign company in Italy?

Answer: As is the case in Germany, in Italy companies also act as tax withholding agent paying, in this capacity, taxes and contributions, including those payable by the employee, by means of the F24 form to public authorities or bodies.

Hence, companies need to register with the various authorities/bodies using, among others, an Italian fiscal code.

We will be glad to take care of all communications and registrations. For more details with respect to the procedures to be followed for the registration of the company in Italy as an employer please visit https://www.graber-partner.com/en/international-companies/employees-employers-in-italy.html.

Question: In the event of a transfer of residence to Italy, is it necessary to enter into an employment agreement under Italian law?

Answer: Yes, in view of payroll processing under Italian law, both the company and the employee are subject to the applicable Italian collective bargaining agreement (so-called CCNL). The CCNL regulates, inter alia, the remuneration, the number of month's pay, the holidays, the remuneration in the event of illness and accident, the probation period and the notice period.

Hence, it is in any case necessary to enter into an employment agreement under Italian law, referring to the applicable CCNL.

In Italy, both the drafting of the employment agreement and the payroll processing is carried out by accountants/labour law consultants. Hence, there is no need to refer to a law firm for the drafting of the employment agreement, since we offer an one-stop service. For further information please refer to our opinion at https://www.graber-partner.com/en/international-companies/employees-employers-in-italy.html.

Question: Is there any permanent establishment risk of the foreign company in case of an employee working from home in Italy?

Answer: Yes, the remote work does not automatically exclude the permanent establishment risk in Italy. Hence, it is necessary to verify if also other requirements are met. In this regard, please refer to our opinion on permanent establishments in Italy.

Question: Which requirements need to be met by an employee in the event of transfer of residence to Italy?

Answer: Before starting to work form home in Italy, the employee shall request an Italian fiscal code and register with the registration office. Subsequently, it will be possible to file the communications with the competent authorities and bodies.

For advice and assistance to employees with regard to the application for the fiscal code, the real estate purchase/rent, the registration with the registration office, the application of low-tax schemes for employees transferring their residence to Italy etc., the employees shall refer to the competent authority and/or a trade union organisation.

Please do not hesitate to contact us via mail at info@graber-partner.com for a non-binding and free first meeting. According to our experience, it is preferable that the responsible contact person is part of our client company.

Question 6

Inheritance declaration

Accepted Answer

The inheritance declaration is a mandatory tax declaration that must be submitted after the death of a taxpayer in Italy. The aim is to report the transfer of assets and rights to the heirs, legatees and beneficiaries and to pay the inheritance taxes due.

The declaration must be submitted within 12 months of the date of opening of the succession (data di apertura della successione), which usually coincides with the date of death of the deceased.

The declaration can be submitted to the Revenue Agency (Agenzia delle Entrate) in various ways:

directly by the taxpayer via the telematic services
via an authorised intermediary (e.g. tax advisor or CAF)
at the competent tax office (ufficio competente dell'Agenzia delle Entrate)

The online service "Dichiarazione di successione web" or special PC software is available for submission. If the notification is submitted electronically, you will receive a confirmation of transmission, which serves as proof of submission.

Who is required to submit an inheritance declaration?

The following persons are required to submit an inheritance declaration:

the heirs (eredi)
the legatees (legatari)
the beneficiaries (i chiamati all'eredità)
the legal representatives of the heirs or legatees
persons who have been placed in possession of the property in the event of the absence or presumed death of the testator
the administrators of the estate (amministratori dell'eredità)
curators of dormant estates (curatori delle eredità giacenti)
executors (esecutori testamentari) and trustees

Note: If several persons are required to report, it is sufficient to submit a single declaration.

Exceptions to the reporting obligation

There is no obligation to submit an inheritance declaration if all of the following conditions are met at the same time:

The inheritance goes to the spouse and/or direct relatives.
The inheritance does not exceed a value of € 100,000.
The inheritance does not include real estate or rights in rem to real estate.

Please note: Anyone who has submitted an inheritance declaration and declared real estate therein is exempt from the separate reporting obligation for municipal property tax (GIS) or municipal property tax (IMU). In such cases, the Revenue Agency will forward a copy of the inheritance declaration to the relevant municipality.

Tax obligations prior to submission

If real estate is inherited, the taxes and duties associated with the inheritance must be calculated and paid before submitting the inheritance declaration. These are:

Mortgage tax (imposta ipotecaria).
The cadastral tax (imposta catastale).
Stamp duty (imposta di bollo).
Fees for mortgage and cadastral services.

Calculation and payment of inheritance tax (imposta di successione)

The method for calculating and paying the actual inheritance tax depends on the date on which the inheritance was opened:

Inheritance cases from 1 January 2025 (reform)

For inheritance cases opened on or after 1 January 2025, the inheritance tax must be calculated by the taxpayer themselves. The self-calculated inheritance tax can be paid at the same time as the inheritance declaration is submitted or no later than 90 days after the deadline for submitting the inheritance declaration.

Inheritance cases before 1 January 2025

For inheritance cases opened before this date, the tax will continue to be calculated by the competent territorial offices of the Revenue Agency. In this case, payment must be made within 60 days of delivery of the assessment notice (avviso di liquidazione) using form F24.

Inheritance tax rates and allowances (aliquote e franchigie)

The tax rates and allowances depend on the degree of kinship to the deceased. The taxes are applied to the total net transfer value:

Beneficiary	Tax rate	Allowance per beneficiary
Spouse and direct relatives	4 %	€ 1,000,000
Siblings	6 %	€ 100,000
Other relatives up to the 4th degree and Collateral relatives up to the 3rd degree	6 %	-
All others	8 %	-

An allowance of € 1,500,000 is provided for beneficiaries with severe disabilities.

Payment of tax in instalments

If the inheritance tax amounts to more than € 1,000, payment by instalments can be requested. In this case, a down payment of at least 20 % must be made.

The remaining payment can be staggered as follows:

Amounts up to € 20,000: Maximum of 8 equal quarterly instalments.
Amounts over € 20,000: Maximum of 12 equal quarterly instalments.

Question 7

Interest Limitation Rule in Italy

Accepted Answer

In Italy, corporations are subject to a special restriction on the tax deductibility of interest on borrowed capital. This rule, known as the interest limitation rule, is intended to counteract excessive debt financing and is based on Art. 96 of the Italian Income Tax Code (TUIR).

The current regulation has been in force since 2019 and transposes the European ATAD Directive (Directive (EU) 2016/1164 on combating tax avoidance practices) into national law through Decree Law No. 142/2018.

Affected entities

The interest limitation rule applies to all companies subject to IRES, in particular:

joint stock companies (SpA), limited liability companies (Srl), cooperatives and consortium companies based in Italy
public and private institutions and trusts that mainly carry out commercial activities
non-resident companies and entities, including trusts, which carry out their activities in Italy through a permanent establishment

Article 96 of the Italian Income Tax Act does not apply to financial intermediaries, IRPEF subjects (partnerships, sole traders) and non-commercial entities.

Functionality and calculation

The interest limitation rule determines the extent to which interest expense is tax deductible. The calculation is carried out in two stages:

Offsetting against active interest: Passive interest (for the current period and carried forward) is subject to deductibility without limit up to the amount of active interest (current and carried forward).

Deductibility of net interest expense: The excess portion of interest expense (after offsetting against interest income) is only deductible up to 30% of the "fiscal ROL" (Risultato Operativo Lordo).

The „Fiscal ROL” (EBITDA-like measure)

In simple terms, ROL corresponds to earnings before interest, taxes, depreciation and amortisation (EBITDA), but is calculated according to tax criteria rather than commercial law criteria.

Since 2019, it has been mandatory to use the "fiscal ROL" for the calculation, which replaces the former "accounting ROL" (ROL contabile). It is calculated as:

Value of production – Production costs (items A – B of the income statement)
+ Depreciation of tangible and intangible assets
+ Leasing instalments for business assets

Tax deduction restrictions must be observed (e.g. telephone expenses are only 80% deductible, car expenses only 20%).

Carry-forward of surpluses

Surplus	Tax treatment	Time limit
Passive interest	Non-deductible passive interest can be carried forward indefinitely and is deductible in subsequent years if there is sufficient active interest or fiscal ROL.	Unlimited
Active interest	Surplus active interest can be carried forward to the next tax period without any time limit and offset against passive interest there.	Unlimited
30% ROL surplus	If 30% of ROL exceeds the passive interest, the surplus ROL can be used for the following five tax periods (FIFO principle).	5 years

Special rule for „old loans“

For loans contracted before 17 June 2016, the unused accounting ROL accumulated up to 31 December 2018 may still be used. This amount can be carried forward without time limitation, but only to offset interest related to those specific pre-2016 loans.

Conclusion

The Italian interest limitation rule (Art. 96 TUIR) is of great importance for the tax planning and financing of companies. Careful calculation of the fiscal ROL and forward-looking design of the financing structure are crucial in order to avoid interest deduction restrictions or make optimum use of them.

Question 8

IRPEF (income tax in Italy) - tax brackets & rates in Italy

Accepted Answer

IRPEF (Imposta sul reddito delle persone fisiche) – Personal Income Tax in Italy

The IRPEF is the Italian tax on personal income. The IRPEF is a progressive tax. Calculation of labor costs, gross and net salary: gross-net-cost calculator for Italy

It applies to individuals who are resident in Italy and/or who earn income in Italy (possibly subject to the 183-day rule). Individuals residing in Italy must declare all income to IRPEF, while non-residents are taxed only on income earned in Italy. IRPEF is calculated on income from real estate, employment (dependent and independent), business activities, capital/investment income, and other income sources. IRPEF is often (mistakenly) equated with payroll withholding tax, even though withholding is only one component. The law provides a number of deductions and tax credits that reduce the taxable base or the net tax, as explained below.

IRPEF is usually withheld via payroll for employees and then summarized in the income tax return ("redditi", Form 730, or RED for pensioners). The tax balance with the "redditi" return is normally paid in June of the following year, along with the first instalment. The second instalment is due on November 30. Payments are made using Form F24. If the tax return generates an IRPEF credit, it can be offset against other taxes via F24. When using Form 730 (for employees), credit or debit is normally adjusted in payroll between July and September.

For the calculation of labor costs, gross salary, and the corresponding net salary, you can use our gross-net-cost calculator for Italy.

IRPEF Tax Rates and Income Brackets 2026

As part of the 2026 tax reform, a relief is planned for taxpayers in the middle-income segment. The second IRPEF rate (income between €28,000 and €50,000) is to be reduced from the current 35% to 33%.

Note: The following measures are part of the current draft of the 2026 Budget Law and are not yet final.

Thus, for the 2026 tax year and subsequent years, the following income brackets and IRPEF rates are expected to apply as of 01.01.2026:

23% up to €28,000
33% from €28,001 to €50,000 (instead of the current 35%)
43% over €50,000

The following table also shows the effective average tax rates when the respective income bracket is fully utilized.

The maximum relief applies to the portion of income falling within the favorable corridor between €28,000 and €50,000 — i.e., a maximum of €22,000. With the 2-percentage-point reduction (from 35% to 33%), a theoretical annual tax saving of €440 results.

For 2026, the IRPEF tax rates in Italy are therefore as follows: 23% up to €28,000, 33% from €28,001 to €50,000, and 43% above €50,001.

IRPEF Rates and Income Brackets from 2025

The reduction to 3 brackets initially planned only for 2024 was confirmed as a structural measure in the 2025 Budget Law (Law No. 207 of December 30, 2024, published on December 31, 2024).

Therefore, for the 2025 tax year and beyond, the following brackets and progressive rates apply:

As of January 1, 2025, the following IRPEF rates apply in Italy:
– 23 % up to €28,000
– 35 % from €28,001 to €50,000
– 43 % above €50,000
The table below also shows the effective average tax rates when each bracket is fully reached.

Progressive Income Tax Calculation (Example)
Bracket	Rate (%)	Income (€)	Tax (€)	Effective Rate (%)
Up to €28,000	23 %	28,000	6,440	23.0 %
Up to €50,000 (incl. first bracket)	35 %	50,000	6,440 + 7,700 = 14,140	28.28 %
Above €50,000	43 %	> 50,000	6,440 + 7,700 + 43 % × (Income – 50,000)	variable

The adjustment provides slight relief for middle incomes, while incomes up to €12,000 are effectively tax-exempt. For incomes over €50,000, the rate remains unchanged.

Additionally, for employment income up to €40,000, deductions have been slightly increased. The structural increase from €1,880 to €1,955 applies to incomes up to €15,000.

The “Trattamento Integrativo” for incomes up to €15,000, originally limited to 2024, has also been made structural and applies in 2025.

Historical IRPEF Rates in Italy

Until 2022, rates were: up to €15,000: 23%; €15,001–28,000: 27%; €28,001–55,000: 38%; €55,001–75,000: 41%; over €75,000: 43%.

From January 1, 2022, rates were reduced from five to four brackets as follows:

up to €15,000: 23%
€15,001–28,000: 25%
€28,001–50,000: 35%
over €50,000: 43%

Therefore, for 2023 the rates were: up to €15,000: 23%; €15,001–28,000: 25%; €28,001–50,000: 35%; over €50,001: 43%.

IRPEF Rates and Brackets for 2024

With Decree-Law No. 216 of December 30, 2023, progressive rates were restructured from 2024 by reducing brackets from four to three.

From January 1, 2024, the following IRPEF rates apply:

Summary table of 2024 brackets and rates:

Income	IRPEF Rate 2024
< €28,000	23%
€28,001–50,000	35%
> €50,001	43%

The 2024 reform provided benefits ranging from €20 to €260 for incomes between €15,000 and €28,000. For incomes above €28,000, a steady €260 benefit was granted, while higher earners with eligible 19% deductions also benefited by €260 (excluding medical expenses).

New 2025 Measures to Reduce Labour Cost (Cuneo Fiscale)

To compensate for the non-confirmation of the partial social security contribution waiver in 2025, two measures have been introduced for employees. These apply only to employment income.

“Somma integrativa” – Labour cost support

This measure applies to employees with total taxable employment income (RLD) not exceeding €20,000. Exempt income for “impatriati” is included, but not the primary home’s value.

The amount is calculated as a percentage of taxable employment income:

Annual RLD	% somma integrativa
RLD < €8,500	7.1%
€8,500 < RLD < €15,000	5.3%
€15,000 < RLD < €20,000	4.8%

This amount is automatically granted in each payroll period, affecting only net pay, and generates a tax credit for the employer via F24. If unjustified, it is checked at the year-end; if over €60, repayment is spread over 10 installments.

“Ulteriore detrazione d’imposta” – Additional tax deduction

This applies to employees with total income (RC) over €20,000 and up to €40,000.

The deduction is €1,000 annually, reducing from €32,000 until it phases out at €40,000:

Annual RC	Annual Deduction
€20,000 < RC < €32,000	€1,000
€32,000 < RC < €40,000	€1,000 × (40,000 – RC)/8,000
RC > €40,000	0

It is applied through payroll. If tax withheld is insufficient, no credit arises. Year-end checks apply; overages above €60 are recovered in 10 installments.

Adjustment of Deductions for High-Income Taxpayers (2025)

For taxpayers with total income above €75,000, from 2025 limits apply to deductions for qualifying expenses. The maximum deductible amount is based on an income-based base multiplied by a coefficient tied to dependent children.

Income brackets & base amounts:

€75,001–100,000: base €14,000
above €100,000: base €8,000

Child-dependent coefficient:

0 children: 0.50
1 child: 0.70
2 children: 0.85
3+ or child with disability: 1.00

Example calculations:

Income €80,000, 2 children → 14,000 × 0.85 = 11,900 €
Income €110,000, 1 child → 8,000 × 0.70 = 5,600 €

These limits apply to expenses from 2025. Medical expenses are excluded, as are interest on mortgages/insurance contracts entered into by December 31, 2024, and investments in innovative startups and SMEs. For multi-year expenses (e.g., renovations), annual installments count toward limits, excluding those incurred up to December 31, 2024.

See our news “Tax Incentives 2025” for more: https://www.graber-partner.com/de/gutachten-rundschreiben/1314-steuerverguenstigungen-1314.html

Changes to Dependent Family Member Deductions (2025)

Deductions for dependents also change from 2025.

Child deductions

Age limits have been defined. The child deduction (up to €950/year) is granted only for children aged between 21 and under 30. Income threshold for dependent status (not exceeding €2,840.51/year, or €4,000 up to age 24) remains. The age limit doesn’t apply for children with disabilities—they remain eligible beyond age 30. Calculation formula unchanged.

Child deductions for under-18s are no longer claimed via payroll but through the unified family allowance (assegno unico) paid by INPS, based on the ISEE means test.

Other dependent family members

The scope of other dependents has been narrowed. From 2025, deductions are allowed only for ascendants (parents, grandparents, great-grandparents) living with the taxpayer. Until 2024, deductions (up to €750) were also allowed for others under Civil Code art. 433 living with, or maintained by, the taxpayer. Income-based scale remains.

Other Key Tax Updates for 2025

Fringe Benefit Valuation for Company Cars

From 2025, fringe benefit valuation rules for mixed-use company cars change. For vehicles registered and assigned from January 1, 2025, taxable value is 50% based on a notional annual mileage of 15,000 km using ACI rates, net of employee contributions.

The rate is 10% for electric vehicles and 20% for plug-in hybrids. For vehicles registered between July 1, 2020, and December 31, 2024, previous percentage rules (25%, 30%, 50%, 60% depending on CO₂) continue. Pre‑July 2020 vehicles use the earlier 30%.

Fuel Type	% Tax Base
Electric	10 %
Plug-in Hybrid	20 %
Combustion	50 %

Cashless Travel Reimbursements Only

From the 2025 tax year, detailed reimbursements for meals, lodging, travel, and non-scheduled public transport (taxi, hired cars) are tax-free/deductible only if paid via traceable methods (bank transfer, card, or cheque). Cash reimbursements will be taxable and contributory. Exceptions apply for public line-transport commuters, where cash reimbursement remains exempt.

Productivity Bonus Tax Relief

For bonuses paid in 2025, 2026, and 2027, the substitute tax rate of 5% is confirmed (replacing the original 10%). Eligible are variable bonuses tied to productivity, profitability, quality, efficiency, innovation, and profit-sharing under collective or company agreements. The annual maximum remains €3,000 and previous-year employment income cap is €80,000.

Increased Fringe Benefit Exemption (2025–2027)

Departing from the standard €258.23 exemption, for 2025–2027 the exemption increases to €1,000. This applies to fringe in kind, domestic utilities, rent of primary residence, and mortgage interest. It increases to €2,000 for employees with declared dependent children (if CPF provided to employer).

Special Tourism Sector Relief (through September 30, 2025)

From January 1 to September 30, 2025, a special non-taxable supplement equal to 15% of gross pay for night work and holiday overtime is confirmed for hospitality, tourism, and spa sectors. This measure, previously in place, is granted upon employee request and self-certification of under €40,000 employment income in 2024. The employer offsets the credit via F24.

Taxation of Tips in Tourism Sector

Changes to tipping taxation in hotels and catering: while the 5% substitute tax remains, from 2025 the taxable cap rises from 25% to 30% of annual employment income. The prior-year income cap for eligibility increases from €50,000 to €75,000. Customer tips are treated as employment income and, unless explicitly waived, are taxed at 5% up to 30% of income. They are exempt from INPS/INAIL, excluded from TFR calculation, and count for deductions and benefits eligibility.

Adjustment of Regional and Municipal Surcharges

IRPEF is also subject to regional and municipal surcharges. Key rules:

Tax residence: The residence as of January 1 determines regional/municipal surcharge. Moves during the year take effect the following year.

Municipality change: Under art. 58 DPR 600/1973, a municipality change takes effect 60 days after request.

Regional surcharge: Regions may levy an additional IRPEF surcharge; collected in 11 instalments via payroll after settlement, with full deduction in final payroll if employment ends mid-year.

Municipal surcharge: Municipalities may apply up to 0.8% of taxable income (Rome has special rules). Highlights:

Collected in settlement and 11 instalments next year (Jan–Nov).
From March–November, a 30% advance is withheld in 9 instalments.
No advance for new hires during the year.

Municipalities must announce rates annually by a set deadline; otherwise, previous year’s rates continue.

Gross-net calculator 2026

Contact & Services

Contact us for a free initial consultation or email us with your details and request. Tel. +39 0474 572900 or info@graber-partner.com.

Our Services

Question 9

ISA (indici sintetici affidabilità)

Accepted Answer

The ISA, short for Indici Sintetici di Affidibilità Fiscale, are standardized questionnaires that companies and freelancers are required to submit as a mandatory part of their tax return. The main purpose of the ISA is to verify the credibility of the income declared by the taxpayer.

Structure and Calculation

Currently, there are 172 different questionnaires, with the correct choice depending on the specific business activity carried out. Regardless of the type of questionnaire, data from financial accounting as well as information on employed personnel (e.g., paid working days of employees) must always be provided. In addition, depending on the industry, specific activity-related data is collected (such as number of beds or charged rates for accommodation businesses).

Based on the entered data, the Revenue Agency’s software assigns a score on a scale from 1 to 10, with 10 being the best value. At the same time, the average score of the last two tax periods is calculated.

Impact of the ISA Score

The ISA score is decisive for tax reliefs or controls:

Advantages (score of at least 8 or a two-year average of at least 8.5):
- Reduction of the statute of limitations for tax violations by one year.
- Increase of the thresholds above which certification by a tax advisor is required for the offsetting of tax credits.

Disadvantages (score of 6 or lower):
- The likelihood of a tax audit increases, especially if a low score is recorded over several tax periods.

Neutral (score above 6 and below 8):
- Neither advantages nor disadvantages are foreseen.

Important Exceptions

In certain cases, the ISA questionnaire does not have to be completed. The main exceptions are:

Start-up or termination of the business activity during the tax period.
Revenues exceeding € 5.164.000 in the tax period.
Application of the flat-rate taxation regime during the tax period.

Question 10

Probation period

Accepted Answer

Probationary Period

The duration of the probationary period is established by the collective bargaining agreement and serves as a trial phase for both the employer and the employee. During the probationary period, the employment relationship may be terminated at any time without notice and without providing reasons. It is also possible to waive the application of the probationary period.

Probationary Period – Key Elements

Frequently Asked Questions (FAQ)

FAQ – Probation Period

1. What is the probation period and what is its purpose?
The probation period is a clause in the employment contract as well as an element of mutual interest for both contracting parties:

For the employer: It allows them to determine whether the employee's abilities and working methods are suitable for the performance to be rendered.
For the employee: It allows them to check whether the working conditions, job performance, and work environment meet their expectations.

2. When is a probation period void?
For a probation period agreement to be valid, certain formal and substantive criteria must be met:

Written form is mandatory: The probation period must be agreed upon in writing. If this written form is missing, the probation period is void, and the employment relationship is considered permanent and indefinite from the start.
The employer may not assign the employee different areas of responsibility during the probation period than those agreed upon in the employment contract. A deviation from this can also lead to the nullity of the probation period clause.

3. Where is the duration of the probation period determined?
The duration of the probation period is legally regulated and is determined in the individual collective agreements, whereby the duration usually depends on the classification/category.

In principle, the following applies:

Maximum Duration: According to the so-called Transparency Decree, the probation period may last a maximum of six months. Collective agreements can stipulate a shorter duration.
Specific rules for fixed-term contracts (new from 2025):
- For fixed-term employment contracts, the duration of the probation period is determined proportionally to the contract duration.
- It amounts to one day of effective work performance per 15 calendar days starting from the commencement of the employment relationship.
- There are minimum and maximum limits for the duration:
  - For contracts up to six months: minimum 2 days, maximum 15 days.
  - For contracts over six months up to less than twelve months: maximum 30 days.
- Collective agreements may set more favorable regulations for employees but may not deviate from these specific minimum and maximum limits.

4. When is the probation period extended?
The probation period is extended by the corresponding duration in the event of absences due to illness, work accident, maternity/paternity leave, or even work suspension by the employer (e.g., wage compensation). This ensures that the employee is actually given the opportunity to be tested. However, foreseeable absences such as public holidays or weekly rest days do not interrupt the probation period.

5. How can the employment relationship be terminated during the probation period?
A characteristic feature of the probation period is the facilitated termination of the employment relationship. Both the employer and the employee can terminate the employment relationship at any time during or at the end of the probation period, without stating reasons and without observing a notice period. Furthermore, there is no entitlement to compensation.

Question 11

Sistema di Interscambio (SdI) - Italian electronic invoices

Accepted Answer

1. Introduction

Since 1 January 2019, electronic invoicing has been mandatory in Italy for most transactions between companies, freelancers and private individuals based in Italy. Invoices are only valid if they have been sent to the SDI and accepted by it; an invoice sent directly to the customer is therefore no longer a legally valid document. The Sistema di Interscambio (SdI), a central IT system, acts as a "digital postman" for processing and forwarding electronic invoices. This article explains the crucial role and functioning of the SdI in Italian accounting.

2. Main section

2.1 What is the Sistema di Interscambio (SdI)?

The SdI is an IT system managed by the Italian revenue agency (Agenzia delle Entrate). It was introduced in 2008 for mandatory electronic invoicing to public institutions (FatturaPA) and, since 2019, has also been responsible for transactions between private companies (B2B), B2C and with the public administration (PA). It acts as a "virtual postman" that ensures the secure and standardised flow of invoice data.

In Italy, the SDI plays a very central role: it is not only a technical intermediary, but also a supervisory authority. Every invoice must pass through the SDI before it reaches the recipient. This gives the Agenzia delle Entrate immediate access to all transactions in a structured form. This model – often referred to as a "clearance system" – enables near real-time control of VAT data and is strongly focused on combating tax fraud.

In other European countries, on the other hand, the "post-audit system" is usually used. There, companies send their invoices in electronic form directly to their business partners without the involvement of a central authority. The tax authorities only access the invoice information for the purpose of checks or through periodic reports (e.g. advance return for tax on sales, purchases, SAF-T files, SII in Spain). In other words, the authorities carry out checks retrospectively, whereas in Italy the checks are carried out before the invoice is delivered.

The difference therefore lies in the role of the tax administration: while in Italy the SDI is effectively the bottleneck through which every invoice must pass, in most other EU countries communication between companies remains decentralised and is only reported to the tax office on a supplementary basis. Italy thus places greater emphasis on transparency and real-time data, while other countries allow companies more flexibility in transmission and the tax authorities are only involved at a later stage.

Here are some country examples, as of 09/2025:

Feature	Italy (SDI)	Germany	France	Spain	Netherlands
Model	Clearance system	Post-audit system (planned by 2028: mandatory e-invoicing, no central authority)	Post-audit system (PPF clearance-like system planned by 2026)	Mixed system: SII (near real-time reporting)	Post-audit system
Role of the tax authority	Central point: SDI checks and forwards	Indirect involvement only	No central hub yet; central platform planned	Receives data in near real time (SII)	No central office
Time of inspection	Real-time before delivery	Downstream (audits)	Downstream, real-time reform from 2026	Near real-time (4 days)	Downstream
Transmission channels	PEC, portal, API/web services, FTP	Multiple (EDI, e-mail, PDF, ZUGFeRD)	Multiple (EDI, PDF, Factur-X)	Direct + SII parallel reporting	Multiple (EDI, XML, UBL)
Format	XML (FatturaPA)	Multiple: ZUGFeRD, XRechnung, PDF	Multiple, harmonised XML planned	Structured XML (SII)	UBL-based

2.2 The core functions of the SdI in Italy: Receipt, verification and forwarding

The SdI fulfils three main functions:

Receipt: It accepts electronic invoices exclusively in the legally prescribed XML format.
Verification: It performs automatic checks on these XML files.
Forwarding: After successful verification, it forwards the invoices to the intended recipients.

The SdI ensures the authenticity and integrity of the XML files by checking the format, size and (optionally) the digital signature. The invoice issuer remains responsible for the tax correctness of the content.

The verification includes detailed checks:

Mandatory information (supplier, customer, invoice number, date, description, amounts, VAT)
Existence of tax numbers
Electronic delivery address (recipient code or PEC)
Amount consistency
Duplicate invoices

2.3 SdI feedback and delivery methods

After an invoice has been submitted, the SdI informs the invoice issuer of the following statuses:

Delivery confirmation ("Ricevuta di consegna"): Successful verification and delivery.
Confirmation of non-delivery ("Ricevuta di impossibilità di consegna"): Invoice is available in the “Fatture e Corrispettivi” portal.
Confirmation of rejection ("Ricevuta di scarto"): Invoice rejected; must be corrected and resubmitted.

Delivery methods:

Recipient code
PEC address (with “0000000” in the code field)
“0000000” for portal delivery

Companies can register their preferred receiving channel in the portal; the SdI will always use this channel.

2.4 Definition of terms: Codice Destinatario, Codice SDI and Codice Univoco

Codice Destinatario / Codice SDI: Seven-digit alphanumeric code for B2B/B2C invoices.
Codice Univoco: Six-digit code for public administration invoices.

3. Conclusion

The Sistema di Interscambio is a central pillar of the Italian tax system, which automates, standardises and checks compliance with electronic invoicing. Understanding how it works is essential in order to comply with legal obligations and leverage the efficiency of digital processes.

Question 12

Tax incentive for equity increases (ACE)

Accepted Answer

Tax incentive for equity increases (ACE)

In Italy, up until the 2023 tax year, the ACE tax incentive was available. This allowed companies applying double-entry bookkeeping to claim an additional deduction from their taxable income, based on the increase in equity compared to 31.12.2010. For the calculation of the equity increase, both retained earnings and capital contributions, including shareholders’ contributions to cover possible losses, could be considered. The equity increase was multiplied by a notional interest rate of 1.3%, and the resulting amount could be deducted from the taxable income base. Limited to the year 2021, an alternative to ACE was introduced: the Super-ACE. Further details can be found below.

Super ACE

Introduced as part of Covid-19 support measures, it allowed taxpayers eligible for ACE to apply, on the equity increase of 2021, a special deduction of 15% from the 2021 taxable income base. The benefit was subject to the condition that the 2021 equity increase could not be withdrawn in the following two years, 2022 and 2023.

Question 13

Work from home in Italy (for foreign company)

Accepted Answer

Due to the many technical possibilities and with a view to a better work life balance, working from home is becoming more and more attractive for companies and their employees. In fact, due to social distancing and the new provisions to cope with the Covid-19 emergency in 2020/2021, working from home has become the focus of companies. In particular, working from home refers to a work model that allows the employee to perform all or part of his work from home or from places other than the office. In this case, the employee continues to have an employment relationship and is therefore also insured.

For companies without a secondary office in Italy, working from home is often a valuable and cost-effective alternative to renting office spaces, provided that the company is registered as an employer in Italy. For further details please refer to our website at https://www.graber-partner.com/en/international-companies/employees-employers-in-italy.html.

According to the provisions in force in Italy, a written agreement/supplementary employment agreement shall be concluded for remote work. In general, the work equipment and working materials (e.g. computer, printer, mobile phone, stationery, payment of rent or heating costs) are provided by the employer, unless otherwise agreed,

Rules and special regulations of remote work in Italy
Regardless of whether the employee works in the company premises or at home, the same rules apply. Hence, fixed working hours (with guaranteed availability of the employee) will be established and the applicable safety regulations must be complied with. Moreover, a trusting relationship between the employer and the employee is obviously advantageous, as it is impossible or difficult to control the actual working time of the employee.

However, this phenomenon may be handled by entering into specific wage agreements (fixed rate overtime payment). Moreover, collaborative software with features such as monitoring working time, access control, defining working time per task etc. may help to better coordinate remote work and strengthen the trusting relationship between the employer and the employee. A particular aspect of remote work is the liability of the Italian Workers' Compensation Authority (INAIL). Indeed, it is often not possible to determine whether or not an accident at work occurred. If, for example, an employee working at the office were to trip and injure on this way to the bathroom, this event would be considered as an accident at work. However, in the case of a remote worker, it would not.

For the calculation of labor costs, gross salary, and the corresponding net salary, you can use our gross-net-cost calculator for Italy.
Special aspects to consider for companies without secondary office in Italy: In any case, working from home per se does not constitute a permanent establishment in Italy. However, before registering the employee in Italy it is necessary to verify the work to be carried out and the tasks to be performed. Under certain conditions, such an employment relationship may create a permanent establishment, e.g. in the case of sales force. For further details please refer to our website at https://www.graber-partner.com/en/international-companies/incorporation-secondary-office-in-italy.html. For all details concerning the registration of employees in Italy, please refer to https://www.graber-partner.com/en/international-companies/employees-employers-in-italy.html. For further information on posting/secondment to Italy please visit https://www.graber-partner.com/en/international-companies/posting-secondment-of-employees-to-italy.html.

SMART WORKING
Smart working is a working model aiming at greater flexibility, increased work autonomy and better work life balance. In effect, it is a specific way of executing the employment relationship that, thanks to an agreement between the parties, is provided for in certain work phases or for the purpose of achieving certain business goals.

Unlike remote working, no prescribed working hours apply and no fixed place of work is established. However, smart workers may be supervised/controlled by the employer, if this is provided for in the agreement. However, a trustful relationship with the employee is a useful prerequisite.
Moreover, the salary remains unchanged. In any case, only the payment of meal vouchers may be suspended during smart working.

For smart working it is necessary to:
- enter into a specific agreement
- file the mandatory e-communication to the Italian Ministry of Labour.

WORKING FROM HOME DURING THE COVID-19 EMERGENCY
During the Covid-19 pandemic, for various reasons it was necessary for employees to work not at their usual office, but from home. Among the main reasons were:

the government's provision according to which employers should allow remote work where possible
the prohibition of employees to leave home because of quarantine
the need for parents to stay at home for home-schooling

For the sake of simplicity and in order not to create other working models, the Italian government provided for "smart working" (see above), simplifying the relevant regulations and communications during the emergency. Hence, it was not necessary to enter into a supplementary agreement and it was possible to submit the e-communication to the Italian Ministry of Labour in a simplified and abbreviated form.

All employee who, due to their type of work, were not able to work from home (e.g. hairdressers, dentists etc.), could apply for extraordinary parental leave at the Italian Institute of Social Insurance (INPS). During this time, they were exempted from work, but continued to receive 50 % of their salary.

Question 14

Working for a German company in Italy, things to know

Accepted Answer

Persons resident in Italy are often contacted directly by German companies for the purpose of penetration and expansion in the Italian market. If they wish to work in Italy for a German (or Austrian) company and, hence, for a foreign company, they will have to check if the company is duly registered in Italy. After doing so (e.g. by registration as an employer or by incorporation of a limited liability company under Italian law), an employment agreement in accordance with Italian law and payroll processing in compliance with Italian law needs to be established.

For the calculation of labor costs, gross salary, and the corresponding net salary, you can use our gross-net-cost calculator for Italy.

Working from home, service personnel, field staff, sales consultants? Things to consider

Besides the above-mentioned registration, remote office workers will not have to consider many other things. In fact, the place of residence will be registered as workplace (also for insurance purposes) and the remote worker, like any other employee, will have to abide by the rules laid down by the employer. The only difference is that the remote worker performs all or part of his work from home. In general, the work equipment and working materials (e.g. computer, printer, mobile phone, stationery) are provided by the employer, unless otherwise agreed. However, expressly regulated working hours apply. Moreover, a trusting relationship between both parties is obviously advantageous, as it is impossible or difficult to control the actual working time of the employee. However, the remote worker does not have to be available at any time.

In the case of service personnel/field staff (e.g. help desk personnel, programmers, maintenance staff), the employee's place of residence is normally considered for the purpose of registration of the place of work, as the German employer often does not have or need a secondary office in Italy. Since service personnel/field staff sometimes need to travel to customers/suppliers, the company often provides a company car or the employees use their own private car, charging the costs to the employer on a pro rata basis. In Italy, vehicle regulations and laws are very complex and subject to constant change. Hence, they need to be checked carefully together with the tax consultant/payroll consultant.

One case in point is that of sales representative/sales force. In fact, their work mainly consists of sales promotion and expansion in Italy and they often get better contractual conditions. Under the OECD Model, employees who play a key role in sales, even if they do not participate in the conclusion of final contracts, constitute a personal permanent establishment. In this case, the company shall register in Italy (usually under the business name "XY Italy Srl"). Hence, the employees will carry out their work for the Italian company.

Our services for your project in Italy

Setting up a subsidiary in Italy
Incorporation of a secondary office in Italy
Employees/Employers in Italy
Posting/Secondment to Italy

Please feel free to contact us for a first meeting that does not place you under any obligation and is free of charge, or send us an email with your request and contact details. We will reply to your e-mail in the shortest possible time. Tel. +39 0474 572900 or info@graber-partner.com.

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