As Italy’s tax system continues to evolve, understanding your filing obligations for 2026 (covering income earned in 2025) is more important than ever. Whether you are a long-term resident, a newly arrived expat, a high-net-worth individual transferring your tax residence, or a non-resident who owns property in Italy, knowing whether you are required to file—and how—is essential to staying compliant.

Italian tax law is built on a relatively straightforward principle: individuals who are tax resident in Italy are generally taxed on their worldwide income, while non-residents are taxed only on income sourced in Italy. From this foundation flows the central rule—most residents and many non-residents with Italian income must file an annual tax return. However, as with much of Italian tax law, the details matter.

The General Rule: Residents and Italian-Source Income

If you are tax resident in Italy and earned income during 2025, you will likely need to file a tax return in 2026. This includes employment income, self-employment income, pension income, rental income, investment income, and foreign income. Italy’s personal income tax (IRPEF) applies progressively across these categories.

Non-residents are not exempt from filing simply because they live abroad. If you earned Italian-source income—such as rental income from property located in Italy, business income connected to Italy, or certain capital gains—you are generally required to file as well.

There are limited exceptions. If your only income consists of employment income from a single Italian employer that has fully withheld taxes at source, and you have no additional reporting obligations, you may not need to file. Similarly, individuals whose income falls below certain thresholds—€8,000 for employment income or €7,500 for pension income—may be exempt, provided no other income or asset reporting obligations apply. Once foreign income, foreign assets, or additional revenue streams enter the picture, a filing obligation typically arises.

Corporate and Individual Taxation

Italy distinguishes clearly between corporate and individual taxpayers. Companies operating in Italy are subject to IRES (corporate income tax) at a flat 24% on profits. Individuals, however, are taxed under the IRPEF system, which covers employment income, self-employment income, pensions, rental income, and investment returns.

For individuals with cross-border financial lives—foreign brokerage accounts, stock options, international rental properties, or multi-jurisdictional business interests—annual reporting becomes more complex and significantly more important.

The Codice Fiscale: The Foundation of Italian Tax Compliance

Before filing a return, you must have a codice fiscale, Italy’s tax identification number. This number is essential not only for tax purposes, but for nearly all formal interactions in Italy. Opening a bank account, purchasing or renting property, registering utilities, and signing contracts all require it.

EU citizens can typically obtain a codice fiscale by presenting valid identification at a local Agenzia delle Entrate office. Non-EU citizens may apply either at a designated tax office or through the Questura (police headquarters). Those planning ahead from abroad may request a codice fiscale through the Italian consulate in their country of residence.

Without this number, filing a tax return—or even conducting routine financial transactions—becomes impossible.

Special Tax Regimes in 2026

Italy has positioned itself as an increasingly attractive destination for global talent and wealth through special tax regimes. For 2026, two of the most relevant are the updated Flat Tax Regime for New Residents and the Non-Dom Regime.

The Flat Tax Regime for New Residents now sets its annual substitute tax at €300,000, an increase from prior years. This regime allows eligible individuals—those who were non-resident in Italy for at least nine of the previous ten years—to replace ordinary taxation on all foreign-source income with a fixed annual payment. Italian-source income remains taxed under standard IRPEF rules. Family members may be included for an additional €50,000 per person annually. An advance ruling from the Italian Revenue Agency is often recommended for certainty.

This regime is particularly attractive to high-net-worth individuals with substantial foreign income, as it eliminates the need to report foreign assets and avoids exposure to Italy’s foreign asset monitoring and wealth tax obligations for those assets covered under the substitute tax.

Choosing the Correct Tax Form

Filing correctly begins with selecting the appropriate form. For income earned in 2025 and reported in 2026, the two principal forms are the Modello 730 and the Modello Redditi Persone Fisiche (PF).

The Modello 730 is generally used by employees and pensioners whose income is straightforward and primarily domestic. It is available through the Revenue Agency’s online platform and is often pre-completed with information already on file. The filing deadline is 30 September 2026.

The Modello Redditi PF is required for self-employed individuals, non-residents, those with foreign assets or income not captured in the Modello 730, and individuals with more complex financial situations. The electronic filing deadline is 15 October 2026, with earlier deadlines applicable in limited paper filing cases.

If you miss the deadline, the system allows late filing of the Redditi PF within 90 days, subject to a €25 penalty.

To ensure accuracy, your employer or pension provider must issue a Certificazione Unica (CU) before tax season. This document confirms income earned and taxes withheld, similar to a W-2 in the United States.

Documentation: The Backbone of Compliance

Successful filing depends on organized documentation. Employment income requires the CU, payslips, and any foreign equivalents. Self-employed individuals must gather invoices, accounting ledgers, VAT returns, and foreign equivalents such as 1099 forms.

Pensioners should collect both Italian CU statements and foreign pension documentation. Property owners need rental contracts, IMU payment receipts, mortgage interest statements, and any relevant foreign property declarations.

Investors must retain brokerage statements, documentation of foreign taxes paid, and records supporting any foreign tax credit claims. Those with more complex assets—stock options, RSUs, trusts, or partnership interests—must ensure that grant, vesting, and income documentation is complete and accessible.

While Italy’s Revenue Agency pre-populates many deductions—particularly for healthcare and insurance—taxpayers remain responsible for ensuring accuracy and completeness.

Deductions and Credits

Italian tax law offers a range of deductions and credits that can materially reduce tax liability. Families benefit from credits tied to dependent children and spouses. Medical expenses are deductible at 19% of eligible costs above €129.11 annually. Mortgage interest on a primary residence is deductible at 19% up to €4,000 per year. Pension income deductions vary depending on overall income levels.

Although the system provides relief, it is essential to maintain detailed records, as the tax authority may request documentation during audits.

The Filing Process

For residents, filing has become increasingly digital. The first step is obtaining a SPID (Public Digital Identity System) credential, which grants secure access to the Revenue Agency’s online portal. Once logged in, taxpayers can review the pre-filled Modello 730, make necessary amendments, upload documentation, and submit electronically.

Non-residents may also file electronically, though in limited cases paper submission remains possible.

In addition, multinational enterprises subject to OECD/GloBE Pillar Two global minimum tax rules must comply with additional reporting requirements. Updated forms released in February 2026 allow for the filing of QDMTT, IIR, or UTPR returns—even where no tax liability arises.

Payment Methods and Deadlines

After filing, timely payment is essential to avoid penalties. Taxes are typically paid using the F24 form, which consolidates various tax types into a single payment instrument.

For smaller balances, payment may be made in a single installment by 30 November. Larger balances are generally paid in two installments: 40% by 30 June and 60% by 30 November. An optional July deferral is available with modest interest.

Modello 730 filers often see taxes withheld directly from payroll or pension income, simplifying the process. For others, payments can be made online or through banks and post offices.

Late payments trigger escalating penalties and interest, making punctual compliance a practical necessity.

Final Thoughts

Italy’s tax system is comprehensive and, at times, complex. The fundamental question—who needs to file a tax return in Italy for 2026—depends on residency status, income type, asset location, and participation in special tax regimes. For residents with global income, non-residents with Italian property, entrepreneurs, pensioners, and high-net-worth individuals alike, annual reporting is often unavoidable.

The key is preparation: understanding your obligations early, gathering documentation in advance, selecting the correct form, and paying any taxes due on time.

About ItalianTaxes.com

ItalianTaxes.com is a streamlined digital platform designed to help both residents and non-residents file and pay taxes in Italy with clarity and confidence. Its bilingual tools cover essential obligations including IMU, TARI, rental income reporting, and foreign income compliance. Built specifically for expats, new residents, and property owners, ItalianTaxes.com offers a modern, compliant solution to navigating one of Italy’s most intricate administrative systems.