- Corporate Tax Rate
- 27.9%
- Capital Gains Rate
- 26%
- Crypto Capital Gains
- 26%
- Territorial System
- No
- IP Box Regime
- Yes
- Tax Treaties
- 100
- VAT Rate
- 22%
- Dividend Withholding
- 26%
- Holding Company Viable
- Yes
- Notes
- Patent Box replaced by 210% super-deduction on qualifying R&D costs (110% additional). R&D tax credit at 10% base (up to 45% in Southern Italy for small businesses). Banks and financial institutions face higher IRAP at 4.65% (2026-2028). Innovative startup investors get 65% IRPEF deduction.
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Italy
#12 of 25Worldwide43%Europe · Rome · EUR
EU's third-largest economy with compelling special tax regimes: a EUR 300k flat tax for HNWIs, 50% impatriate income exemption, and the forfettario 5-15% flat tax for freelancers under EUR 85k. Milan is the primary tech hub with 9 unicorns. Notoriously complex bureaucracy and aggressive foreign asset reporting offset otherwise strong fundamentals.
70
Tax32
Funding100
Visa90
Residency68
Tax Res.55
Practical83
Remote64
Family85
Ecosystem65
Dimension Profile
Dimension Breakdown
26% in 2025 (EUR 2,000 exemption removed). Rises to 33% from January 2026. Euro stablecoins remain at 26%. 0.2% annual IVAFE wealth tax on crypto held abroad. Mandatory Quadro RW reporting on all holdings.
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