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Showing posts with the label Impatriati Tax Regime

The dual tax regime choice: calculating your net take-home pay as a remote worker in Italy

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Securing Italy's Digital Nomad Visa is only half the battle. The entry barrier is appealingly low, requiring a minimum annual income of just €28,000 from foreign sources, but the real determining factor for your relocation is how you structure your taxes once you're there. Remote workers in Italy typically fall into one of two genuinely advantageous tax frameworks: the Regime Forfettario or the Impatriati tax regime. Fail to proactively elect one of these, and you default to the standard tax system, where progressive income tax rates running 23% to 43% combine with a roughly 26.07% Gestione Separata INPS social security burden to take a serious bite out of your income. Here's how to calculate your true net take-home pay in 2026 under the two primary options, with the actual math shown. Option 1: the Regime Forfettario, best for freelancers under €85,000 The Regime Forfettario is the default choice for self-employed digital nomads whose gross revenue doesn't exceed €...