Regime Forfettario vs. Ordinario: Which Italian Tax System Is Right for You?
- Su Guillory
- Mar 31
- 2 min read
If you're planning to freelance in Italy, one of the first (and most confusing) decisions you'll have to make is how you'll pay taxes. Yep, welcome to the glamorous side of la dolce vita.
When you register for your Partita IVA (which you need to legally work as a freelancer), you’ll be asked to choose a tax regime. And unless you’re already well-versed in Italian tax law (lol), you might feel totally lost between the "Regime Forfettario" and the "Regime Ordinario."
So, let’s break it down in real-people language (also in English!).
What Is the Regime Forfettario?
This is Italy’s flat-tax system for freelancers and small businesses. If you qualify, you get a simple tax structure and a reduced tax rate. Here’s the gist:
Flat tax rate of 15% (or 5% if you're just starting out and meet the conditions).
No IVA charged on your invoices.
Fewer bookkeeping requirements—less paperwork, fewer headaches.
INPS (social security) discounts may apply.
To qualify, you need to earn less than €85,000 per year and not have employees. There are other little rules too (like not being a shareholder in another company), but that’s the big picture.
This is usually the best choice for freelancers just starting out or those who want to keep things simple and lean.
What About the Regime Ordinario?
If you earn more than €85,000, or if your business model just doesn’t fit the rules of the regime forfettario, you’ll be in the regime ordinario by default. Here’s what that looks like:
Progressive tax rates (starting at 23% and going up to 43%).
You charge IVA (22%) on your invoices and file quarterly IVA returns.
You can deduct business expenses, which helps lower your taxable income.
More paperwork and accounting requirements (a commercialista is basically non-negotiable).
This system makes more sense for higher earners or people with a lot of business expenses they want to deduct.
So Which One Should You Choose?
If you’re just starting out, earning under €85,000, and want to keep it simple, the regime forfettario is probably your best bet. It’s straightforward, the tax rate is low, and you won’t have to deal with IVA or complicated deductions.
But if you’re earning more—-or you’re building a bigger business with higher expenses—-the regime ordinario might save you money in the long run, despite the higher tax rates and paperwork.
One More Thing: Talk to a Commercialista
I highly recommend chatting with a good commercialista before making your final decision. Tax laws in Italy change often, and they’ll be able to walk you through what’s best based on your specific situation.
If you need a recommendation for a fantastic commercialista, send me an email.
Hope this helps clear things up a bit! And if you haven’t grabbed my Freelancing in Italy Guide yet, it dives deeper into this and a ton of other stuff you’ll want to know.
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