Self-employed in Italy as a foreigner in 2026: registration, taxes and residence
A VAT number is opened free of charge, and a new business pays 5% for its first 5 years with turnover up to $96,000. But first you need residence with the right to self-employment.
| Item | In short |
|---|---|
| What it is called | a sole proprietorship for traders and artisans, a freelance profession for freelancers; both obtain a VAT number |
| Remote registration | the number is opened online or through a representative, but the visa is obtained in person at a consulate |
| Residence | needed before you start: the digital nomad visa or a self-employment visa within the quota of 650 places a year |
| Taxes | simplified regime: 15%, or 5% for a new business in its first 5 years, with turnover up to $96,000 a year; otherwise 23-43% |
| Contributions | a freelancer pays 26.07% of income with no minimum; a trader or artisan from $430 a month |
| Income for the digital nomad visa | from $32,000 a year |
| Registration | the VAT number is free, on the day you apply; the start of activity must be declared within 30 days |
Facts checked: 07.10.2026
Italy charges a new self-employed business one of the lowest taxes in Western Europe: 5% for the first five years and 15% after, as long as turnover does not exceed $96,000 a year. The VAT number, with which any self-employment begins, is opened by the tax agency free of charge.
The difficulty lies elsewhere: a citizen of a non-EU country needs residence that allows self-employment, and there are only 650 visas a year for such work. Below: which routes work in 2026, how to choose the activity and regime and how much really goes on contributions.
We will calculate online the cost of registering and running your company for the first year.
Who self-employment in Italy suits
Self-employment in Italy suits freelancers and consultants with turnover up to $96,000 a year: developers, designers, translators, teachers. Under the simplified regime they pay one tax instead of income tax with surcharges and VAT, and contributions only on actual income.
It also suits those moving on the digital nomad visa as freelancers: such an applicant needs exactly a VAT number in Italy.
It does not suit trade and crafts with small revenue: minimum contributions there start at $5,100 a year even with no income. With turnover above $96,000 the simplified regime is lost and the ordinary scale reaches 43%, so a company should be considered.
Registering as self-employed in Italy step by step
| Step | Time |
|---|---|
| The residence route: the digital nomad visa or a self-employment visa within the quota | before any registrations; the consular application is filed in person |
| Tax code | at a consulate or at the tax agency after entry |
| Residence permit | application within 8 working days of entry |
| VAT number: the start-of-activity declaration, choice of activity code and tax regime | free, on the day you apply; no later than 30 days from the start of activity |
| Registration with the pension institute: a freelancer in the separate fund, a trader or artisan through the chamber of commerce | together with opening the number |
| Electronic invoices through the tax agency's exchange system | from the first invoice |
The activity code determines everything else: the share of revenue on which tax is calculated, the fund that receives contributions and whether contributions have a minimum. It can be corrected later, but the 5% rate is given only to a genuinely new business, so we prepare the first registration with particular care.
Taxes and contributions in Italy
| Regime | Rate and threshold | Who it suits |
|---|---|---|
| Simplified regime | 15% of deemed income, 5% for a new business in its first 5 years; turnover up to $96,000 a year | freelancers and small businesses |
| Deemed income | a share of revenue by activity: 78% for consultants and the professions, 67% for IT services, 40% for trade | everyone on the simplified regime |
| Ordinary regime | 23% of income up to $32,000 a year, 33% up to $57,000, 43% above, plus regional and municipal surcharges | those with turnover above the threshold or large expenses |
| Freelancer contributions | 26.07% of taxable income, no minimum | those without their own professional fund |
| Trader and artisan contributions | about 24% of income, but at least $5,100-5,200 a year | trade and crafts; on the simplified regime a 35% reduction can be requested |
| VAT | 22%; not charged under the simplified regime | businesses on the ordinary regime |
The simplified regime is available if last year's turnover did not exceed $96,000, employment income $40,000 and staff costs $23,000. If turnover passes $120,000 during the year, the regime is lost at once and VAT is charged from that invoice. It is also closed to those who work mainly for their employer of the last two years.
An example: a developer with turnover of $50,000 on the simplified regime has deemed income of 67%, that is $33,500, pays 26.07% contributions on it and 5% tax on the remainder. In total about 20% of turnover goes in the first five years and about 25% after. Newly arrived specialists have another relief, half of a freelancer's income untaxed for 5 years, but it cannot be combined with the simplified regime, so we calculate both options.
In Italy a new business pays 5% tax, but only with the right residence route, activity and regime
The law does not stop you obtaining a VAT number in Italy on your own. But mistakes cost more than any fee: residence without the right to self-employment, an activity code that replaces income-based contributions with at least $5,100 a year regardless of revenue, and losing the 5% rate through a wrong first registration. We choose the route, the digital nomad visa or the self-employment quota, select the activity code and tax regime, and calculate tax and contributions for your income before the move.
The cost of support depends on the residence route and family size; a manager will calculate it in the chat.
Reporting and deadlines
The annual income return is filed by 31 October of the following year. The balance of tax and the first advance are paid by 30 June, the second advance by 30 November; a freelancer pays contributions on the same dates, while a trader or artisan pays the minimum contributions in four instalments a year.
Invoices are issued only electronically, through the tax agency's exchange system, including under the simplified regime. A business on the ordinary regime also settles VAT monthly or quarterly and files an annual VAT return by 30 April.
An Italian tax resident declares foreign accounts and assets in a separate section of the same return.
Banking and receiving payments from abroad
Taxes and contributions are paid through a bank using a single payment form, so in practice you need an account at an Italian or eurozone bank. The bank will ask for the tax code, a residence permit or the receipt for its application, and proof of address.
Payments from foreign clients arrive by ordinary transfer. Under the simplified regime an invoice to a foreign company is issued without VAT, and transactions with EU companies are reported to the tax agency.
Residence through self-employment
The first route is the digital nomad visa, granted outside the quotas. A freelancer needs high qualifications, a degree or 5 years of experience, income from $32,000 a year, 6 months of remote work before applying, accommodation and health insurance. The residence permit is issued for a year and renewed while the conditions are met.
The second route is a self-employment visa within the quota: 650 places a year for 2026-2028. It is open to entrepreneurs investing from $570,000 and creating three jobs, members of the professions, company directors, well-known artists and founders of innovative startups. You need police clearance, a chamber of commerce certificate on the resources required and income for the previous year above $9,600. After 5 years of living in the country you can apply for long-term residence.
Self-employed or a company
Self-employment is simpler and cheaper: the number is opened free of charge and without a notary, and the simplified regime has no VAT and almost no bookkeeping. But an entrepreneur is liable for debts with all assets, and above $96,000 of turnover the reliefs end.
A limited liability company is set up through a notary. It pays 24% corporate tax and a 3.9% regional tax, plus 26% on dividends. A company pays off with high profit, partners and employees. More on the page about company registration in Italy.
Restrictions for certain nationalities
EU citizens need no permit: they open a VAT number like Italians and register their residence with the municipality. Citizens of other countries need residence with the right to self-employment; a residence permit for family reasons gives that right too.
Italian law contains no ban on self-employment for citizens of any country, and the quota is shared by all. But Italy does not issue the investor visa to citizens of Russia and Belarus, and consulates and banks check their applications for longer and ask for proof of the origin of funds. We choose the route and the bank before filing.
This topic in other countries
Self-employment for foreigners in other countries:
- Self-employed in Serbia as a foreigner in 2026: registration, taxes and residence
- Self-employed in Belarus as a foreigner in 2026: registration, taxes and residence
- Self-employed in Kyrgyzstan as a foreigner in 2026: registration, taxes and residence
- Self-employed in Uzbekistan as a foreigner in 2026: registration, taxes and residence
- Self-employed in Montenegro as a foreigner in 2026: registration, taxes and residence
- Self-employed in Slovakia as a foreigner in 2026: registration, taxes and residence
- Self-employed in Spain as a foreigner in 2026: registration, taxes and residence
- Self-employment in Poland for foreigners in 2026: registration, tax and residence
- Self-employment in the Czech Republic for foreigners in 2026: registration, tax and residence
- Self-employment in Slovenia for foreigners in 2026: registration, tax and residence
- Self-employment in Bulgaria for foreigners in 2026: registration, tax and residence
- Self-employment in Georgia
More on living and doing business in Italy:
- Italy digital nomad visa
- Italian residence: all grounds
- taxes in Italy
- cost of living in Italy
- Rome: a relocation guide
- company registration in Italy
All countries for a remote business are in our overview of where to open a company remotely.
FAQ
Can a foreigner register as self-employed in Italy?
Can you register as self-employed in Italy remotely?
What is the 5% and 15% simplified regime in Italy?
How much does a self-employed person pay in contributions in Italy?
Does self-employment in Italy give residence?
Do I charge VAT under the simplified regime?
When does a self-employed person in Italy lose the simplified regime?
How much does it cost to register as self-employed in Italy?
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