Italian tax is high for residents, and the digital nomad visa has no special tax regime of its own. But Italy offers two schemes that can make a big difference for people who move there: the impatriate regime for employees and the self-employed, and the forfettario flat rate for small freelancers. This page explains the position as of October 2026. It is a general guide, not tax advice.
Italian Tax Residency#
You are an Italian tax resident for a year if, for more than 183 days (including fractions of a day since 2024), you:
- are physically present in Italy, or
- are registered with the Italian population register (anagrafe), or
- have your residence (habitual home) or domicile (main personal and family ties) in Italy.
Residents are taxed on worldwide income. Non-residents are taxed only on Italian-source income.
IRPEF Rates#
Italian personal income tax (IRPEF) is progressive, from 23% to 43%, plus regional and municipal surcharges of roughly 1% to 4%. Self-employed people also pay social security contributions (INPS).
The Impatriate Regime#
For people who move their tax residence to Italy and work there, the impatriate regime (reformed in 2024) exempts 50% of employment and self-employment income from tax, up to €600,000 a year, for five years, or 60% for people with a minor child or who move to the south. You must not have been an Italian tax resident in the previous three years (longer in some cases), must be highly qualified, and must commit to staying at least four years. It applies to work performed in Italy, so remote workers can qualify in principle; get advice on your situation.
Forfettario for Freelancers#
Self-employed residents with revenue under €85,000 can use the forfettario regime: a flat 15% tax (5% for the first five years of a new activity) on a fixed percentage of revenue, with simpler accounting. It requires an Italian VAT number (partita IVA) and suits many freelancers.
What It Costs by Base#
These are ballpark monthly costs for one person living comfortably in a one-bedroom flat on a monthly lease, eating out often, with a coworking desk and a social life.
| Base | Lean | Comfortable | Premium |
|---|---|---|---|
| Milan | $1,900 | $2,900 | $4,300 |
| Rome | $1,600 | $2,500 | $3,800 |
| Florence | $1,600 | $2,400 to $3,000 | $4,000+ |
| Bologna, Turin | $1,400 | $1,800 to $2,500 | $3,500+ |
| Naples, Palermo, Lecce | $1,100 | $1,400 to $2,100 | $3,000+ |
Rough prices: an espresso at the bar €1.20, a cornetto €1.50, a pizza €7 to €12, an aperitivo €8 to €15, a trattoria dinner €25 to €40, a coworking day pass €15 to €35, and a monthly city transport pass €35 to €40.
Paying for Things#
Cards and contactless payments are accepted almost everywhere; by law, businesses must accept them. Small bars and markets sometimes prefer cash for small amounts. Bancomat ATMs at banks are reliable; avoid independent machines with high fees.
Opening an Italian Bank Account#
Banks such as Intesa Sanpaolo, UniCredit and online banks such as Fineco and N26 Italia open accounts for foreigners with a passport and codice fiscale; residents get more options. Many nomads use a euro account from Wise, Revolut or another EU bank, which works for most rent and bills.
Taxes and Money FAQs#
Do digital nomads pay tax in Italy?
If you are physically present in Italy, registered there, or have your home or main ties there for more than 183 days in a year, you are an Italian tax resident, taxed on worldwide income.
Does Italy's digital nomad visa have a special tax regime?
No. Visa holders who become tax residents pay standard Italian tax, though the impatriate regime or forfettario may apply.
What is the impatriate regime?
A five-year scheme for people moving their tax residence to Italy that exempts 50% (or 60% in some cases) of employment and self-employment income from tax, up to €600,000 a year.
Is Italy expensive for digital nomads?
Milan, Florence and Rome are expensive; Bologna and Turin are moderate; Naples, Palermo and Lecce are among the cheapest places in Western Europe.