Regime Forfettario 2025: Increased Income Threshold for Employees and Pensioners
The 2025 Budget Law introduces an essential update for taxpayers: it raises the income threshold for the Regime Forfettario from €30,000 to €35,000. This update expands eligibility for employees and pensioners, letting those who earned between €30,000 and €35,000 in 2024 use the flat-rate tax scheme. However, this adjustment will revert to the original threshold in 2026 unless further updates occur.
Employment and Similar Income: Who Qualifies?
The updated threshold covers income types such as:
- Salaries
- Pensions
- Other compensations similar to employment income.
What You Need to Consider:
- If your income from employment or similar sources in 2024 was between €30,000 and €35,000, you may qualify for or keep the Regime Forfettario.
- You can exclude income from a job that ended during 2024 when calculating the threshold.
Maintaining the Regime Forfettario in 2025
If you used Regime Forfettario in 2024, you can continue benefiting in 2025 if your income in 2024 fell between €30,000 and €35,000. This extension helps more taxpayers benefit from the flat-rate regime.
Temporary Nature of the Change
The increased income threshold applies exclusively to the 2025 tax year. Unless extended, individuals earning between €30,000 and €35,000 must transition to the ordinary tax regime starting in 2026. Make sure to plan for this potential change when organizing your long-term finances.
Adopting the Flat-Rate Tax Scheme in 2025
Are you planning to start a new business in 2025? Earning between €30,000 and €35,000 from employment or similar sources in 2024, you can adopt the Regime Forfettario. But if this threshold remains limited to 2025, you will need to switch to the ordinary tax regime in 2026.
Start-Ups and Reduced Tax Rates
Entrepreneurs eligible for the start-up reduced tax rate of 5% can maximize benefits by adopting the Regime Forfettario in 2025. Start-ups can benefit from the reduced rate for the first year – and potentially for the next four years if the threshold is extended.
We Are Happy to Support You
Navigating Italy’s tax system can be complex, especially with temporary changes. Contact us for an individual assessment of your situation. With our expert guidance, you will make the most of the Regime Forfettario in 2025.
