Entrepreneurs carrying out a craft activity (artigiano) or a commercial activity (commerciante) in Italy are generally required to pay social security contributions to the National Social Security Institute INPS.
In certain cases, legislation provides for various possibilities to reduce contributions, which may be applied for if the relevant requirements are met:
The individual concessions differ in terms of the amount of the reduction, the duration of application and the applicable requirements.
It is not possible to benefit from several reductions simultaneously, as these concessions cannot be combined. Therefore, if the requirements for more than one contribution reduction are met, it is necessary to assess, before submitting the application, which benefit is more advantageous in the specific case.
Taxpayers carrying out a business activity and applying the flat tax regime may apply for a 35 per cent reduction of their INPS contributions. The reduction applies to both the minimum contributions and the income-related contributions above the minimum assessment base.
To benefit from the reduction, an electronic application must be submitted via the INPS portal. For persons already registered with the relevant insurance scheme, the application must be submitted by 28 February of the year from which they intend to benefit from the contribution reduction. In the case of a new registration, the application may be submitted after the commencement of business activities and completion of the registration process with the relevant INPS scheme.
Individuals registered with the INPS insurance scheme for craftspeople or traders may apply for a 50 per cent reduction in contributions if they have reached the age 65 and receive a pension.
The application for the reduction must also be submitted electronically via the INPS portal.
The 2025 Budget Act introduced an additional temporary contribution relief measure for individuals who commenced a business activity and registered for the first time in 2025 with one of the INPS insurance schemes for craftspeople or traders.
The reduction amounts to 50 per cent and applies to both the minimum contributions and the income-related contributions above the minimum assessment base.
Unlike the other two concessions, the duration of this reduction is limited to 36 months from the start of business activities or from the first registration.
The reduction may apply to individual business owners, family businesses, shareholders of companies and assisting family members.
The reduction of contributions may also affect the individual’s pension entitlements.
Where the application of a contribution reduction results in lower contributions being paid and the statutory minimum contribution level is therefore not reached, a reduced number of insurance months may be credited for pension purposes. In such cases, the number of credited months is reduced proportionally to the contributions actually paid.
The financial benefit arising from reduced contributions should therefore always be assessed taking into consideration the potential impact on the individual’s pension position.