Italy tax reform for self‑employed

In early August 2026 the Italian government introduced the first phase of its 2027 budget, proposing reduced tax rates for contract renewals and a pre‑payment scheme for self‑employed professionals. The package also offered municipalities tax waivers for participants and highlighted the anti‑evasion drive that had collected over €36 billion that year.

A few days later the Council of Ministers gave final approval to an omnibus fiscal decree that built on the budget measures. The decree established a four‑year tax shield for VAT‑registered self‑employed who renew their preventive agreements, with flat rates ranging from 10 % to 15 % based on reliability scores and a 30 % discount for pandemic‑year taxes. It also extended filing deadlines, introduced corrective filing options, and added loyalty premiums for early renewal, signalling a shift from punitive to preventive tax compliance.

Together, the two steps move Italy’s multi‑year tax reform from proposal to implementation, expanding incentives for contract renewals, simplifying compliance, and aiming to make the tax system more competitive internationally.