IRPEF (Imposta sul Reddito delle Persone Fisiche) is Italy’s personal income tax. It applies to both residents and certain non-residents, making it one of the most important taxes to understand if you live, work, or own income-generating assets in Italy.
Table of Contents
- A Brief Overview of IRPEF
- Who Has to Pay IRPEF?
- How IRPEF Affects Foreigners
- Payment and Deadlines
- Practical Advice for Foreigners
- Key Takeaways
- See Also:
A Brief Overview of IRPEF
- Introduced in 1974, IRPEF is a progressive tax, meaning rates increase with income.
- It applies to salaries, pensions, rental income, self-employed income, and other taxable earnings.
- Rates start around 23% and climb in brackets, with regional and municipal surcharges added on top.
Who Has to Pay IRPEF?
- Residents in Italy: Taxed on worldwide income. If you officially live in Italy more than 183 days a year, your global earnings fall under IRPEF.
- Non-residents: Taxed only on Italian-sourced income (e.g., rental income from a property in Italy).
If you own a holiday home in Italy and rent it out, IRPEF likely applies.
How IRPEF Affects Foreigners
For foreigners, IRPEF is often confusing because:
- Double taxation treaties may protect you from paying tax twice (in Italy and your home country).
- Declaring foreign pensions or foreign property income is mandatory if you are resident.
- You’ll likely need a commercialista (tax advisor) to ensure compliance and avoid penalties.
👉 Related reading: What is Partita IVA in Italy?
Payment and Deadlines
- Payments are usually made in two installments:
- June (balance + first advance)
- November (second advance)
- Payments are made via the F24 form. See: What is F24 and How to Pay It.
Practical Advice for Foreigners
- If you’re working in Italy, taxes are often withheld directly by your employer (sostituto d’imposta).
- If you are self-employed or have rental income, you must calculate and pay IRPEF yourself (with your accountant’s help).
- Non-Italian speakers should always rely on a CAF (What is a CAF in Italy) or commercialista for guidance.
Key Takeaways
- IRPEF is Italy’s main personal income tax, progressive and often combined with regional/municipal surcharges.
- Residents pay on global income, non-residents only on Italian-sourced income.
- Foreigners must pay attention to double taxation treaties and declare worldwide assets if resident.
- Payments are made through the F24 form, usually twice a year.
- A CAF or commercialista is almost essential for foreigners to handle IRPEF correctly.