The Regime Forfettario is a favorable tax scheme in Italy, but to qualify, you typically need to be an Italian resident for at least 183 days in a year. As of today, only 135 days remain in 2024, so meeting the 183-day requirement isn’t possible for the rest of the year.
To still be eligible for the regime within 2024 you would have to have 75% of your clients be Italian. That’s a pretty tall order for someone who just very recently relocated to settle in Italy.
Let’s discuss! What are your thoughts or experiences with the Regime Forfettario? Has anyone in here relocated to Italy with less than 183 days left of the year?
Thank you for raising this interesting topic. Your question made me think back to my personal experience with the Regime Forfettario, which was quite unique.
I was fortunate enough to work for an accounting firm where the main clients were freelancers with VAT numbers under the forfettario regime. This experience gave me an in-depth perspective on how this system works.
Based on this experience, I can tell you that in your current situation, opening a VAT number in forfettario regime could indeed cause some problems. Not so much immediately, but especially when it comes time for tax declaration, as you might have difficulty meeting all the necessary requirements.
The main requirements to consider are:
Being a resident in Italy (you are not)
Not being a partner in a partnership or owning majority shares in a corporation operating in the same sector as the business you intend to open.
If you’re an employee, your gross annual salary in the year prior to opening must be less than €30,000.
Given that we’re already in September, my advice would be to use the withholding tax option up to €5,000 for the rest of this year. Then, around December, you could proceed with the request to open a VAT number starting from January 1st.
This approach would allow you to start the new fiscal year with all requirements in order and to fully exploit the benefits of the forfettario regime, particularly the tax advantages provided for the first 5 years.
I hope this information is helpful to you. If you have any other questions or want to delve deeper into any aspect, I’d be happy to help you further!
The withholding tax on occasional work is equal to 20% of the gross compensation agreed upon with the company or professional you’re working with. This amount is directly withheld by the withholding agent, which is the company or professional. For example, if your gross compensation is €1,000, you will receive “only” €800, as 20% (€200) will be withheld as the withholding tax.
As the name suggests, the withholding tax is an “advance” on the taxes you may need to pay when you file your annual tax return.
Please note that if the total of your occasional work does not exceed €5,500 and you have no other income apart from that from your primary residence (i.e., no other job or income beyond the occasional work), you will not be required to file a tax return. However, it is advisable to do so anyway, as you may be able to recover any undue withholding tax.
For further details and specific clarifications, I recommend consulting with an accountant and specifically asking about “ritenuta d’acconto in prestazione occasionale” (the withholding tax on occasional work).
If you’re freelancing in Italy (or thinking about it), you need to check out this super useful blog post written by one of our very own community members, @gabrielelakhal! It breaks down the ins and outs of the Regime Forfettario, Italy’s simplified tax regime for freelancers.
This guide covers everything you need to know about the benefits, eligibility, and how to stay compliant—whether you’re a seasoned freelancer or just starting out, this info is gold!
Let’s show some love to our fellow member for sharing these insights, and feel free to drop any questions or thoughts in the comments. Let’s keep the conversation going!
