It is currently difficult to provide a definitive answer. Exact rules are expected to be published in the beginning of 2025. It is possible that Italy will introduce tax incentives or a simplified tax regime for digital nomads.
• Some sources suggest a flat tax rate of 20% might apply to digital nomads.
• However, Italy also has a progressive tax scale, which applies as follows:
• 23% on income up to €28,000 per year.
• 35% on income between €28,000 and €50,000 per year.
• 43% on income above €50,000 per year.
Additionally, Italy offers special tax regimes for certain groups:
• Under the Regime Forfettario, freelancers can pay a flat tax rate of 5% for the first 5 years, followed by 15%, provided their annual income does not exceed €85,000 .
• Other incentives include a 50% tax break for new residents (as of 2024) for up to 5 years, applicable to incomes below €600,000 annually .
Digital nomads should also consider social contributions, which can be around 30% for self-employed individuals