Firm Guides · Flat-rate scheme (regime forfettario)

Guide to the flat-rate scheme (regime forfettario) 2026

The flat-rate scheme (regime forfettario) is the favorable tax regime designed for individuals who carry out business activities, arts or professions as sole traders. Today it is the natural reference regime for those opening a small or medium-sized VAT number (partita IVA), because it allows simplified taxation with a single tax, reduced accounting compliance and exclusion from VAT and IRAP. This guide, updated to the rules in force in 2026, provides a comprehensive overview of requirements, income calculation, substitute tax (imposta sostitutiva), social security contributions, exclusion grounds, advantages, limits and practical compliance, with some worked numerical examples.

Before proceeding, a methodological warning: the structural tax amounts (85,000 euro threshold, rates, coefficients) are stable and confirmed for 2026, while INPS contribution figures are recalculated each year by a specific circular. The contribution data reported here are based on the 2026 INPS circulars; in any case, it is good practice to verify them with your accountant at the time of calculation.

Who it is for and access requirements

Individuals may opt for the flat-rate scheme (regime forfettario) the individuals (professionals, artisans, traders, self-employed workers) who carry out the activity in an individual capacity. Companies of any type are excluded by definition. To access and remain in the scheme, it is necessary to meet, in the previous year, the following requirements:

• Revenues or fees not exceeding 85,000 euro, pro-rated to a full year in the case of an activity started during the year. Those already operating check the figure for the previous year.
• Employee and similar labor costs not exceeding 20,000 euro gross per year (fees paid to collaborators, employees, occasional work, profit shares to associates in a participation agreement with a contribution of labor).

Those who start a new activity may opt in by declaring, in the commencement of activity notice (form AA9), that they expect to meet the requirements. The scheme is the natural/default scheme: it applies automatically if the conditions are met, unless an express option is made for the ordinary scheme.

How taxable income is calculated: profitability coefficients

The key feature of the flat-rate scheme (regime forfettario) is that taxable income is not calculated by deducting actual costs from revenues, but by applying to the revenues (or fees) received a flat-rate profitability coefficient set by law based on the ATECO code of the activity. The remaining portion represents the share of costs recognized on a flat-rate basis, regardless of the expenses actually incurred.

Taxable income = Revenues/Fees collected × Profitability coefficient

The cash basis principle (principio di cassa)applies: what counts are the actual receipts of the year, not the invoices issued. Here is the table of coefficients by macro-activity, unchanged in 2026. Note: the codes are the ATECO 2007 codes of Annex no. 4 to L. 190/2014; since 1 April 2025 the ATECO 2025 classification has been operational, and until the updating decree (art. 1 D.Lgs. 81/2025) the coefficient is identified by tracing back to the 2007 code with the ISTAT correspondence table:

Reading example: a consultant (coefficient 78%) who collects 40,000 euros has a flat-rate taxable income of 31,200 euros; a trader (coefficient 40%) who collects 40,000 euros has a taxable income of 16,000 euros. With the same receipts, the tax burden depends heavily on the coefficient of one’s activity.

The substitute tax (imposta sostitutiva): 15% and 5%

A single substitute tax which replaces IRPEF (Italian personal income tax), regional and municipal surtaxes and IRAP (regional tax on productive activities). The rates are two:

• 15% standard, applied to most flat-rate taxpayers (contribuenti forfettari).
• 5% reduced for new activities, applicable for the first five tax periods to those starting a new business, provided that: no business or professional activity was carried out in the previous three years; the activity is not a mere continuation of another carried out as an employee or self-employed (except mandatory traineeship); if taking over another person’s business, that the related revenues of the previous year did not exceed 85,000 euro.

The social security contributions paid are deductible from taxable income before applying the tax: the tax is therefore calculated on (flat-rate income (reddito forfettario) minus contributions paid during the year). This significantly reduces the taxable base.

Social security contributions

The substitute tax (imposta sostitutiva) only concerns taxation: the INPS contributions remain payable and, for many flat-rate taxpayers, they are the most significant cost item.

Professionals enrolled in the Gestione Separata

Professionals without an occupational pension fund pay into the Gestione Separata INPS (INPS separate scheme). For 2026 the rate is 26.07% for those who are not enrolled in another mandatory pension scheme (24% for those already retired or covered by other social security). Contributions are calculated on flat-rate taxable income (reddito imponibile forfettario), with no fixed minimum. The income ceiling for 2026 is 122,295 euro.

Artisans and shopkeepers

Those who carry out a business activity registered with the Artisans or Traders schemes pay contributions with a fixed portion up to the minimum income threshold and a percentage portion on the excess. For 2026:

On the portion of income above 56,224 euros the rate increases by one percentage point (25% and 25.48%). The ceiling differs by contribution seniority: 93,707 euros for those registered with effect before 1 January 1996, 122,295 euros for those with no seniority as at 31 December 1995 (INPS circular 14/2026). The fixed contribution is due even with low or zero income: it is a minimum cost that the artisan or trader bears in any case, apportionable by month where the activity starts or ceases during the year.

The 35% contribution reduction

Flat-rate taxpayers (regime forfettario) who are artisans and traders can request a 35% reduction in contributions (fixed and percentage-based). The application must be submitted to INPS electronically, generally by 28 February (or upon registration for new entrants). The reduction lowers the outlay but proportionally reduces the pension credit and does not apply to professionals enrolled in Gestione Separata (INPS separate scheme).

Disqualifying conditions in detail

Even if the revenue requirements are met, certain situations prevent access to or continued participation in the scheme. The main ones for 2026:

• Employment income or similar income (including a pension) exceeding 35,000 euros in the previous year. The threshold (from 30,000 to 35,000 euros) is confirmed for 2026, but only for the years 2025 and 2026 (art. 1, comma 12, L. 207/2024, as amended by L. 199/2025): absent extensions, from 2027 it reverts to 30,000 euros. It does not apply if the employment relationship ended in the previous year without other employment income or pension income in the same year.
• Participation in partnerships, professional associations or family businesses at the same time as the individual activity.
• Direct or indirect control of an S.r.l. who carries out activities attributable to those of a taxpayer under the flat-rate scheme (regime forfettario).
• Prevalence of revenues toward the current or previous employer (over 50%) in the previous two years: anti bogus self-employment measure (anti “fake VAT number” rule).
• Use of special VAT schemes or flat-rate income determination schemes (agriculture, publishing, travel agencies, tobacco, etc.).
• Tax residence abroad, except for EU/EEA residents with at least 75% of income produced in Italy.

The advantages of the scheme

• Reduced and certain taxation: single substitute tax at 15% (or 5% for the first five years), which replaces IRPEF and local surcharges. The tax formally absorbs IRAP as well, but from tax year 2022 IRAP is in any case not due by any individual (art. 1, comma 8, L. 234/2021).
• No VAT charged: invoices without VAT, more competitiveness toward private customers and simplified management.
• Exemption from the main VAT compliance obligations: no periodic VAT settlements, LIPE communications, annual return. Still due are the transmission to SdI of cross-border transaction data, VAT under the reverse charge on foreign purchases and, for those opting for the cross-border franchise scheme, the quarterly communication.
• No withholding tax on fees.
• Simplified accounting and exclusion from ISA.
• Deductibility of social security contributions paid.

Limits and drawbacks

• Inability to deduct actual costs: penalizes those with high actual expenses.
• Input VAT on purchases not deductible: becomes a full cost.
• No personal IRPEF deductions/allowances applicable against the substitute tax (medical expenses, mortgage, renovations).
• Contributions still due, with the burden of the fixed amount for artisans and traders.
• €85,000 cap which limits growth without changing regime.

Practical compliance and e-invoicing

• Mandatory electronic invoicing: from 2024 extended to all taxpayers under the flat-rate scheme (regime forfettario), with no exemption threshold. In 2026, every taxpayer under the flat-rate scheme (regime forfettario) issues only electronic invoices via SdI.
• Invoice wording: transaction without VAT pursuant to art. 1, paragraphs 54-89, L. 190/2014, indicating the absence of withholding tax.
• Stamp duty of 2 euros on invoices over 77.47 euros (paid virtually, quarterly payment).
• Income tax return: section LM of the Redditi PF form.
• Payments with F24: balance and first advance payment by 30 June, second advance payment by 30 November.

When it really makes sense: numerical examples

Example 1 – Consultant with 40,000 euros (78% coefficient, Gestione Separata, 15%)

• Taxable income: 40,000 × 78% = 31,200 euros
• Gestione Separata contributions: 31,200 × 26.07% = 8,134 euros (deductible)
• Tax base: 31,200 − 8,134 = 23,066 euros
• 15% tax: 3,460 euros
• Total levy: approx. 11,594 euros on €40,000 of receipts

With the 5% start-up rate, the tax would drop to about €1,153 and the total levy to about €9,287.

Example 2 – When it is NOT advisable: high actual costs

A professional (78% coefficient) collects €45,000 but incurs €20,000 of actual costs:

• Under the flat-rate scheme (regime forfettario), taxable income is still 45,000 × 78% = 35,100 euro (actual costs are not deductible).
• Under the ordinary/simplified regime it would be 45,000 − 20,000 = 25,000 euro.

Rule of thumb, to be handled with care: the break-even of the taxable bases alone lies where the incidence of actual costs equals the flat-rate share (100% minus the coefficient) — for a 78% coefficient, at 22% in costs. The break-even of the actual tax burden is however higher: the flat-rate base is taxed at 15% (or 5%), the analytical base at progressive IRPEF from 23% plus surtaxes. The comparison must be made on the final tax, also weighing the non-deductible VAT on purchases and the personal IRPEF deductions that remain unused under the flat-rate scheme (regime forfettario).

Exit from and forfeiture of the regime

• Exceeding 85,000 without exceeding 100,000 euro: the regime ends from the following year.
• Exceeding 100,000 euro: immediate exit in the current year, with a VAT obligation starting from the transaction that causes the threshold to be exceeded.
• Occurrence of a disqualifying condition: the regime ends from the following year.

In summary

The 2026 flat-rate scheme (regime forfettario) confirms its framework: €85,000 threshold, substitute tax at 15% (5% for new activities in the first five years), income determined through ATECO coefficients, exemption from VAT and IRAP, and minimal compliance obligations, with mandatory e-invoicing. It remains very advantageous for activities with limited costs, but it should be chosen only after a personalized assessment. Studio Ponchio is available to assess whether it is convenient in the specific case and to manage access, compliance requirements and any exit.

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