Going self-employed under the flat-rate regime (forfettario)

What it is

• The forfettario is a preferential tax regime, not a legal form: it is used by individuals running a business, a craft or a profession who meet the legal requirements. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario); Regime forfetario – Che cos'è)
• Only for: Trader (commerciante). Trader (commerciante): owner of a business in commerce, services or tourism organised mainly on their own work; insured with the INPS traders' scheme. (Iscrizione alla Gestione commercianti)
• Only for: Craftsperson (artigiano). Craftsperson (artigiano): someone who personally and professionally produces goods or services in a craft business; trading, brokering and serving food and drink to the public do not qualify unless they are only accessory. (Legge 443/1985, art. 2 (imprenditore artigiano); Legge 443/1985, art. 3 (impresa artigiana))
• Only for: Self-employed professional (libero professionista). Self-employed professional (libero professionista): practising arts and professions produces self-employment income; without their own professional pension fund they are insured with the INPS Gestione separata. (TUIR (D.P.R. 917/1986), art. 53 (redditi di lavoro autonomo); Legge 335/1995, art. 2, comma 26 (Gestione separata))

Who it is for

• In the previous year, revenue or fees, scaled to a full year, must not exceed €85,000; with several activities (different ATECO codes) they are added together. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))
• Spending on employees and collaborators in the previous year must not exceed €20,000 gross. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))
• Someone starting out can use the regime by stating in the start-of-activity declaration that they expect to meet the requirements. No option is needed; leaving it out does not bar access, but can be fined €250 to €2,000. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario); Regime forfetario – Modalità di accesso al regime)
• Excluded are, among others: people using special VAT regimes or other flat-rate income regimes; non-residents (except EU/EEA residents earning at least 75 % of their income in Italy); people mainly selling buildings, building land or new vehicles; people holding interests in partnerships, associations or family businesses, or controlling an S.r.l., whose activity is linked to their own; people working mainly for their current employer or one from the previous two years. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))
• Also excluded are people with more than €30,000 of employment or similar income in the previous year, unless the job has ended. The budget law raises this limit to €35,000 “for the years 2025 and 2026”. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))
• The regime ends from the following year if a requirement is lost, but at once, in the same year, if revenue exceeds €100,000: VAT is due from the transaction that crosses the limit. You can opt into the ordinary regime; the option binds for at least three years. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))

What it costs

• Only for: Trader (commerciante), Craftsperson (artigiano). Entering a sole trader in the Registro delle imprese: €18.00 registry fees plus €17.50 stamp duty (amounts of the Rome Chamber of Commerce). (Diritti di segreteria e bolli – imprese individuali)
• Only for: Trader (commerciante), Craftsperson (artigiano). Annual chamber fee 2026 for a sole trader registered in 2026: €53.00 in the special section (small entrepreneurs, craftspeople), €120.00 in the ordinary section. These are Rome's amounts, including the 20 % surcharge that chamber decided; other chambers may differ. (Diritto annuale 2026)
• Only for: Trader (commerciante), Craftsperson (artigiano). INPS contributions 2026 for craftspeople and traders: due at least on the minimum income of €18,808, i.e. at least €4,521.36 a year (craftspeople) and €4,611.64 (traders), even if you earn less. Rates: 24 % / 24.48 % up to €56,224 of income, 25 % / 25.48 % above. (Circolare n. 14 del 9 febbraio 2026 (artigiani e commercianti: contributi 2026))
• Only for: Trader (commerciante), Craftsperson (artigiano). The 2026 fixed contributions of craftspeople and traders are paid in four instalments: 18 May 2026, 20 August 2026, 16 November 2026 and 16 February 2027. (Circolare n. 14 del 9 febbraio 2026 (artigiani e commercianti: contributi 2026))
• Only for: Self-employed professional (libero professionista). INPS Gestione separata 2026 for professionals not insured elsewhere: 26.07 % of income, up to a ceiling of €122,295. There is no fixed minimum contribution. (Circolare n. 8 del 3 febbraio 2026 (Gestione separata: aliquote 2026))
• Only for: Self-employed professional (libero professionista). Professionals in an order with its own pension fund pay that fund's contributions, not INPS. Those amounts are not shown here. (Iscrizione alla Gestione separata – liberi professionisti)
• Only for: Trader (commerciante), Craftsperson (artigiano). Craftspeople and traders in the forfettario can apply for a 35 % cut in INPS contributions; those starting in 2026 must apply as promptly as possible after the registration notice. (Circolare n. 14 del 9 febbraio 2026 (artigiani e commercianti: contributi 2026); Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))

Taxes and contributions

• Taxable income is revenue or fees multiplied by a profitability coefficient set per activity group. On it you pay a 15 % substitute tax, which replaces IRPEF, the regional and municipal surcharges and IRAP. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))
• For the start year and the following four years the rate is 5 %, if in the previous three years you ran no business, craft or profession and the new activity does not continue earlier work (except a compulsory traineeship). (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))
• No VAT on sales in Italy: you do not charge it, pay it or deduct it on purchases. No withholding tax (ritenuta d'acconto) is applied to your fees. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario); Regime forfetario – Che cos'è)

Bookkeeping

• No duty to keep accounting books or registers for tax purposes; you must still keep the documents you issue and receive. (Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))
• Electronic invoicing through the Sistema di Interscambio is mandatory: the forfettario exemption was abolished, from 1 July 2022 for those with revenue above €25,000 and from 1 January 2024 for everyone. (D.Lgs. 127/2015, art. 1 (fatturazione elettronica); D.L. 36/2022, art. 18 (fatturazione elettronica))
• Each year you file your income tax return (Redditi PF) online between 15 April and 31 October of the following year; no annual VAT return. (D.P.R. 322/1998, art. 2 (dichiarazione dei redditi); Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))

Steps

1. Only for: Self-employed professional (libero professionista). Self-employed professional (libero professionista): open your VAT number (partita IVA) by sending form AA9/12 to the Agenzia delle Entrate. No entry in the business register (Registro delle imprese) is needed. (Apertura, variazione, chiusura partita IVA – persone fisiche (modello AA9/12))
2. Only for: Trader (commerciante), Craftsperson (artigiano). Trader or craftsperson: open your partita IVA with the single business filing (Comunicazione Unica, ComUnica) to the Registro delle imprese. The same filing also covers INPS and the Agenzia delle Entrate. (Apertura, variazione, chiusura partita IVA – persone fisiche (modello AA9/12); D.L. 7/2007, art. 9 (Comunicazione unica))
3. Declare the start of your activity within 30 days of starting. (D.P.R. 633/1972, art. 35 (dichiarazione di inizio attività))
4. Only for: Trader (commerciante), Craftsperson (artigiano). Give a digital address (PEC, certified email) when registering in the Registro delle imprese; without it the application is suspended. (D.L. 179/2012, art. 5 (domicilio digitale delle imprese individuali))
5. Only for: Craftsperson (artigiano). Craftsperson: apply to be entered in the register of craft businesses (Albo delle imprese artigiane) within 30 days of starting; this also registers you with the INPS craftspeople's scheme (Gestione artigiani). (Iscrizione alla Gestione artigiani)
6. Only for: Trader (commerciante). Trader: in ComUnica always fill in section AC to register with the INPS traders' scheme (Gestione commercianti). (Iscrizione alla Gestione commercianti)
7. Only for: Self-employed professional (libero professionista). Professional without their own professional pension fund: register online with the INPS Gestione separata using the “Domanda Iscrizione Parasubordinati” service. (Iscrizione alla Gestione separata – liberi professionisti; Legge 335/1995, art. 2, comma 26 (Gestione separata))
8. Only for: Trader (commerciante), Craftsperson (artigiano). If your activity needs a permit that depends only on legal requirements, you replace it with a notification (SCIA) filed online with the municipality's business desk (SUAP). (Legge 241/1990, art. 19 (SCIA); D.P.R. 160/2010, art. 2 (SUAP))
9. In form AA9/12 or in ComUnica state that you apply the forfettario. Craftspeople and traders who want the 35 % INPS cut send INPS the dedicated online declaration. (Regime forfetario – Modalità di accesso al regime; Legge 23 dicembre 2014, n. 190, art. 1, commi 54-89 (regime forfetario))