In my last An American in Italy Newsletter, I asked readers to pick our next blog topic, and it turns out that a lot of you want to learn some Italian slang words! So, as always, I aim to please. I have compiled a list of 10 Italian slang words or phrases that you’ll hear on an almost daily basis in Italy, and which can turn out to be very useful (like when you want to wish someone luck or clean your plate at mealtimes).

Since there are hundreds of fun and funny Italian slang words to learn, I expect this to be the first article of several. If you have any suggestions for future words or themes, leave them in the comments!

Side note: If you’d like to sign up for the newsletter and have the chance to choose future topics (as well as get news and updates on new posts), check out the subscription link in the sidebar or at the bottom of this page.

1. Dai

“Dai” is one of the most-heard Italian slang words — so much so that many people don’t even realize it’s slang! It means “come on” and is usually used when someone is trying to convince you to do something.

Example:
Dai, andiamo, altrimenti si fa tardi. (Come on, let’s go, otherwise it will get late.)

2. Boh

“Boh” is always a favorite of Italian learners because it sounds cute and is a great way to express uncertainty. Here is a word-for-word transcription of the time when my Italian professor taught it to my class in college:

Student: What does “boh” mean, Professor?
Professor: (shrugs) Boh.
Student: What do you mean, “boh?”
Professor: Boh!
Student: …
Professor: Che c’è? (What’s wrong?)
Student: What the @$%! does “boh” mean??????
Professor: (exasperated) I don’t know!
Student: Then how are we supposed to know?!?!

So, did you get it? “Boh,” as my professor so confusingly tried to tell us, means “I don’t know,” or “who knows?” and usually comes with a raise of the palms and a shrug of the shoulders.

Example:
–Dove sono i gatti? (Where are the cats?)
–Boh! Non li ho visti oggi. (Who knows! I haven’t seen them today.)

3. In bocca al lupo + Crepi il lupo

Get prepared for a phrase that seemingly makes no sense: to say “good luck” to someone before a big event, exam, or challenge, you don’t usually say “buona fortuna” like you might think. More often, you say “In bocca al lupo,” which literally means “in the mouth of the wolf.” Oh, and the response is “Crepi il lupo” or simply “crepi,” which means “let the wolf die.” It sounds a little weird, but it makes more sense if you compare it to something like “break a leg” in English.

Example:
–Hai l’esame oggi? In bocca al lupo! (Do you have the exam today? Good luck!)
–Crepi il lupo! (Thanks!)

4. Fare la scarpetta

Now one for all the food lovers out there! Do you know how Italians scoop up the remaining sauce on their plate with a piece of bread after they finish their pasta? There’s a term for that! It’s “fare la scarpetta,” which literally means “to make the little shoe.” It sounds a little strange to be making shoes at the lunch table, but this one one you’ll hear very often, because true Italians don’t leave anything behind on their plate!

Example:
Dai, devi fare la scarpetta! È la parte migliore! (Come on, you have to scoop up the sauce! It’s the best part!)

5. Tutto a posto

You may hear this Italian slang term as a question: “tutto a posto?” “Is everything alright?” or as a statement: “tutto a posto.” “Everything is fine.” Literally it means “everything is in its place,” meaning there are no problems. It is a bit of a casual phrase, and can be used when speaking about a person’s or their family’s general well-being, or could be used when asking how a project or an endeavor is going.

Example:
Tutto a posto con la macchina? (Is everything alright with the car?)
Si, tutto a posto. (Yes, everything’s alright.)

6. Allucinante

“Allucinante” means “incredible,” “amazing” or “mind-blowing,” and is often used in a sarcastic manner. I, for instance, hear my sister-in-law say it almost every night while watching the news and hearing about all the crazy things going on in the world. It can also be used positively, and literally means “hallucinatory,” like something is so incredible that you just can’t believe it.

Example:
Fa un freddo allucinante oggi. (Today it is incredibly cold.)

7. Non vedo l’ora

Literally, “Non vedo l’ora” means “I can’t see the hour,” but in actuality it means “I can’t wait.” Use this one when you are very excited to do something (or when you are being sarcastic about being excited to do something).

Example:
Ho un appuntamento con Daniele alle otto. Non vedo l’ora! (I have a date with Daniele at eight. I can’t wait!)

8. Stammi bene

You will most likely hear “stammi bene” during the classic long Italian goodbye when you are leaving someone’s house. It is an affectionate, informal way of saying “take care” or “take care of yourself,” but many people (past me included) may wonder why it isn’t just “stai bene,” since you are more literally telling the other person to “be well.” However, the explanation for the “mi” is actually very sweet: “stammi bene” technically means “take care of yourself/be well for me.” So the person is asking you to look after yourself for their sake, because they care about you.

Example:
Buonanotte, tesoro. Stammi bene! (Goodnight, dear. Take care of yourself!)

9. Che palle

“Che palle” is not the politest of slang terms, but it is used a lot. The literal translation is something like “what balls,” but it really means “what a pain (in the butt)” or “how annoying.” Use it when you are frustrated or something is not going the way you want, or when you keep getting interrupted or running into problems at work, like my husband does.

Example:
I ragazzi sono in ritardo di nuovo? Che palle… (The kids are late again? How annoying…)

10. Cavolo

If you know your Italian vegetable words, you will know that “cavolo” is the word for “cabbage.” Funnily enough, though, it is also used as an interjection to mean something like “heck!” or “dang it!” Like “dang it” and “heck,” it is a non-offensive way to say “damn” or “hell,” but it still probably isn’t super nice to say in front of your mother-in-law when meeting her for the first time.

Example:
Che cavolo fai qui? (What the heck are you doing here?)

What Italian slang word do you hear (or use!) most often? Let us know in the comments!

The post 10 Italian Slang Words for Your Everyday Life appeared first on An American in Italy.

While I knew I was already around a B1-B2 level of Italian, the thought of putting those language skills on display for such an important purpose was daunting. But, instead of (just) stressing about it, I buckled down and studied hard, but it wasn’t easy to find resources that explained what the test was really like. So, as always, I have created that resource for you, complete with tips to help you feel more confident and prepared.

What is the CILS B1 Cittadinanza Exam?

You probably already know the answer to this question if you are reading this post, but just in case, the CILS B1 Cittadinanza exam (a.k.a. ESAME CILS – Livello B1 cittadinanza, a.k.a. CILS B1 c, a.k.a. CILS B1 test for citizenship) is a slightly abbreviated version of the B1-level Italian language test. Offered by the Universita di Stranieri di Siena, CILS stands for “Certificazione di Italiano come Lingua Straniera,” which means “Certification of Italian as a Foreign Language.” It tests you on your knowledge of Italian speaking, reading, writing, and listening and a passing grade certifies that you can speak and understand Italian on an intermediate level. You need this certification in order to apply for Italian citizenship in certain cases, such as through marriage.

The goal of the exam is to put your Italian language skills to the test in realistic situations you will encounter on a day-to-day basis in Italy. The reading section is made up of articles you might see in a newspaper or magazine, the listening portion features news reports or snippets of conversations between friends or with a customer service representative, and the writing portion involves writing an email to acquire a service or to fix a problem. Even the speaking portion is designed to simulate a real conversation like the ones you would have with an Italian when you’re out and about.

How Long Does the CILS B1 Cittadinanza Test Take?

As mentioned before, there are four sections of the B1 citizenship exam. Each one has a set time limit (more on that in a minute) and combined, the test takes around two hours to complete. The “regular” B1 exam (the one not specifically designed for citizenship purposes) takes almost four hours, so if you are unsure of which one to take, are a bit nervous about test-taking, or only specifically need the certification for citizenship, go for the CILS B1 c.

A Note About How the Test Works

I will get more into the different sections of the test in the next part, but there is something very important I need to tell you first. A lot of people during my testing session had issues with this, even if it is something really simple. But the gist is this: when you take the test, you will be given a test booklet and an answer sheet. DO NOT WRITE ON THE ANSWER SHEET UNTIL YOU ARE TOLD TO. My proctor at Laboling Language School in Milazzo was going crazy (for good reason!) because so many people messed this up.

The test booklet contains all the questions and prompts you need for the exam. You can write notes in this and use it like scratch paper and you can scribble out your answers and then rewrite them as much as you want until you have your final choice down. But the only thing you should write on the official answer sheet is your FINAL ANSWER. You will be writing with a black ink pen (bring your own, by the way), so there is no erasing, and you can only have one answer sheet since it is personalized for you. So if you mess up on this, you are in trouble.

Long story short, another important part of the exam is just simply listening to instructions.

The Four Sections of the CILS B1 Citizenship Exam

The whole purpose of the CILS B1 Cittadinanza exam is to make sure you’ve got the Italian skills to be autonomous in Italy. If you’re going to be a citizen, you should be able to use the language well enough to get things done, right?

With that in mind, the test is broken down into these four sections:

Listening (~20 minutes)

The first skill you will be tested on is listening. There are two parts to this section. You will first listen to a set of six dialogs and answer multiple choice questions about them. There are three options for each dialog, and you will be able to listen to the audio twice. The proctor will play the audio through completely once, then there will be a two-minute pause to look at your initial impressions and read the questions and answer options more thoroughly. You will then listen to the audio again, then have around two more minutes to check your answers again before you write them on the official answer sheet.

The second part of the listening section is a bit tougher. You will listen to two longer pieces of audio, usually two unrelated things like a news report and announcement of a new product or sale. You will then answer 12 true or false questions about each of them. The two texts will be read one after the other, with just a small pause in between (a few seconds, marked by a small bit of music on the recording). After the first round, you will have two minutes to check your answers and read more closely, and then you will hear them both again. After the second round, you will have a couple of minutes to look over your answers, then you transfer them to the official answer sheet.

TIPS: You can make marks in the text booklet, so take advantage of this! Underline words you think might be important for getting the meaning, and put a mark next to your first guess before ultimately circling your final answer.

Also, on the first listen, focus on overall meaning before getting into the details on the second round. And don’t panic! If you don’t understand everything on the first read through, you still have the second one, and that one is always clearer.

Note as well that the audio will be playd out loud for everyone at the same time. There are no headphones used, so when you’re studying, be sure to listen to the audio out loud so you get used to hearing it in a room instead of directy in your ears, as this can change how well you understand it.

Reading (40 minutes)

Like the listening portion, the reading part of the test is split into two sections. One is a page-long text that you have to read and answer 12 true or false questions about. It is typically something like a press release or an informative announcement about a service, subscription, or sale.

The other part is another, shorter, piece, usually an informative article on a slightly lighter topic like the opening of a new park or trends in radio station listeners. Here, you fill in the blanks (using multiple choice) with the grammatically correct words. This is to test your knowledge of things like articles, verb forms/tenses, and general vocabulary. There are only six questions here, so this is arguably the easier part, even if each question is worth more points in the final scoring.

TIPS: You have 40 minutes for this section, so take your time. In your test booklet, you can underline things and make notes, which can help you think things through. Read very carefully, first for meaning, then for the nitty gritty details.

One other huge tip I learned: watch out for absolutes! Things like “always,” “never,” etc. are usually a trick. Does the person in the text “always” eat at eight? Or does he “usually?” The distinction is very important for the true/false statements. Apparently this sort of thing is a very common form of “trick” question used on all Italian tests, not just the ones designed for foreigners.

Writing (40 minutes)

The writing section is one of the ones that makes test-takers most nervous. It is one thing to read/listen and understand, but it is a whole other thing to have to create words and sentences on your own. Luckily, though, this part of the test is very straightforward.

You will be given two prompts, and you must choose one to write about. But these prompts aren’t college essay-style assignments that require previous knowledge of a topic: you simply have to write an email to someone, usually to resolve an issue. For example, you might have to write an email to a travel agent and explain that you need to change your travel plans. Or, you may have to write to the customer service department of the sporting goods store because the bike you ordered arrived damaged (these are both real prompts that have been on the test, by the way).

You have 40 minutes to write your email, and it has to be between 80 and 120 words long. You can write it on scratch paper first, then create a clean, polished copy on the official answer sheet.

TIPS: Before the test, study the formal “you” forms (both singular and plural), as well as the polite conditional forms of verbs. These emails are to be written to people in authority/people you don’t know, and I have heard from many people who didn’t pass this part because they were too informal in their letter-writing.

Speaking (~5 minutes)

Now for the part I dreaded the most: speaking. I studied my heart out for the other three sections, but the speaking part made me the most nervous. But there is good news: this part of the test is extremely short compared to the others. And, all you have to do is have a conversation with the proctor (in a separate room, so no one else is around to watch or judge, if that helps).

The first part of this section involves you introducing yourself and saying how old you are, where you are from, etc. and lasts around one minute. This part is very easy and can be prepared for in advance. Then, for the second part, you will choose from four prompts on a sheet of paper that you have never seen before that moment. Some of them are questions like “What are the requirements for requesting Italian citizenship?”, but most of them are things like “What is your usual morning routine? What do you eat for breakfast?” or “Describe your dream house,” or the often-reused: “Would you prefer to live in the country or the city?”

The question that you choose is just a jumping-off point, however, as the proctor will then ask you follow-up questions. So think of this more as a conversation, not a monologue. For example, you might say that you eat eggs for breakfast every morning and the proctor might then ask you if you like to cook and what other dishes you like to make.

I was very worried about this before, but I can’t stress enough that it is just like talking to an acquaintance in the end. The point of this exercise is to be understood, not to be perfect, so while of course good grammar is ideal, don’t worry if you have some awkward pauses or stumble over your words a few times before you find the right ones.

TIPS: Try to relax as much as you can. I was a nervous wreck when I got to the speaking section even though I was sure I could pass the other three, but the proctor made things a lot easier by making it seem like just a casual conversation — which is what it is meant to be.

If you look at the criteria for scoring the test (below), you will see that the main thing is getting your point across and showing that you understand the things being asked of you. You are not expected to speak perfectly — this is B1 level, not C2. And keep in mind that this section is only around five minutes long, so even if you are freaking out the whole time, it will be over soon!

CILS B1 c Exam Scoring

Each section of the CILS B1 Cittadinanza exam has the potential to earn you 12 points. They are broken down like this, according to the official website (note: I am leaving this in Italian to sneak in a chance for you to practice!):

TEST DI ASCOLTO (Listening)

Prova n. 1 (the multiple-choice section)
Test a scelta multipla composto da 6 item
Punteggio massimo: punti 6

I punti saranno così assegnati:
punti 1: per ogni risposta esatta
punti 0: per ogni risposta sbagliata o omessa

Prova n. 2 (longer texts with True/False statements)
Test a individuazione di informazioni composto da 12 item
Punteggio massimo: punti 6

I punti saranno così assegnati:
punti 0.5: per ogni risposta esatta
punti 0: per ogni risposta sbagliata o omessa

TEST DI COMPRENSIONE DELLA LETTURA E RIFLESSIONE GRAMMATICALE (Reading section)

Prova n. 1 (long text with True/False statements)
Test a individuazione di informazioni composto da 12 item
Punteggio massimo: punti 6

I punti saranno così assegnati:
punti 0.5: per ogni risposta esatta
punti 0: per ogni risposta sbagliata o omessa

Prova n. 2 (fill-in-the-blanks, grammar part)
Test a completamento con scelta multipla composto da 6 item
Punteggio massimo: punti 6

I punti saranno così assegnati:
punti 1: per ogni risposta esatta
punti 0: per ogni risposta sbagliata o omessa

TEST DI PRODUZIONE SCRITTA (Writing Section)

Prova n. 1 (write 1 email)
Prova a tema (80 – 120 parole)
Punteggio massimo: punti 12

I punti saranno così assegnati:
a) efficacia comunicativa: fino a punti 3
b) adeguatezza stilistica: fino a punti 1
c) correttezza morfosintattica: fino a punti 4
d) adeguatezza e ricchezza lessicale: fino a punti 3
e) ortografia e punteggiatura: fino a punti 1

TEST DI PRODUZIONE ORALE (Speaking Section)

Prova n. 1 (introduction + conversation)
Prova orale ~2-3 minuti
Punteggio massimo: punti 12
I punti saranno così assegnati:
a) efficacia comunicativa: fino a punti 4
b) correttezza morfosintattica: fino a punti 4
c) adeguatezza e ricchezza lessicale: fino a punti 3
d) pronuncia e intonazione: fino a punti 1

How to Pass the CILS B1 Cittadinanza

For each section, you will need to get a minumum of 7/12 points. Each section is scored separately, and if you fail one section, you have to redo the entire test (which is a big bummer).

You will be able to check your score online using the login information the proctor will give you during the test, but you won’t get online results for at least 45 days and the certification won’t come by mail until around 90 days later.

Self-Study Resource for CILS B1 Cittadinanza

There are many tutors out there who will help you prepare for the CILS B1 c test, but if you want to study on your own, I cannot recommend this book enough: Percorso CILS B1 Cittadinanza: Manuale di Preparazione e Approfondimento.

This book IS the exam: it is structured exactly how the test itself is structured and has numerous exercises in all four of the sections you need. It also has several practice tests and free audio files for the listening section are included. Without this book, I would not have been nearly as prepared as I was, so I highly suggest buying it and practicing every day until you feel confident.

Note: They recently changed how the test is structured, so you may get a copy of this book that has yes/no answers instead of true/false. You can get the updated pages from the publisher’s website for free here.

You should also read, listen, speak, and write in Italian as much as you possibly can leading up to the test: completely immerse yourself so that the exam will feel less like a herclulean task and more like a natural extension of what you do every day.

How to Sign up for the CILS B1 Cittadinanza Exam

Everything you need to know about signing up for the CILS B1 c exam can be found on the official CILS website, including test locations, pricing, and practice exams.

In boca al lupo!

Have you taken the CILS B1 test for citizenship yet? Give us your best study tips in the comments!

The post How to Prepare for the CILS B1 Cittadinanza Exam appeared first on An American in Italy.

With these foundations in place, this final article turns to a key topic for anyone with financial ties abroad: declaring foreign income. Here, we explain what qualifies as foreign income, how the worldwide income principle affects expats, the requirements for reporting foreign assets (including the RW form), the role of international tax treaties in preventing double taxation, and the most common mistakes expats make when managing income across borders. 

I hope you enjoy it, and feel free to comment with your thoughts and any questions that come up!

How expats should Declare Foreign Income in Italy: Rules, Reporting & Common Mistakes

If you’re living in or planning to move to Italy as an expat, it’s critical to understand your new obligations regarding worldwide income. Italy applies the principle of global or “worldwide” taxation: all earnings, whether from within or outside Italy, must be reported and are potentially taxable.

Proper reporting is key to staying compliant, avoiding double taxation, and preventing costly mistakes that many newcomers unintentionally make. Below, you’ll find a clear, step-by-step overview of the key rules and your practical responsibilities.

Understanding the Worldwide Income Principle

Once you qualify as an Italian tax resident, generally by spending over 183 days per calendar year in Italy, establishing your domicilio (habitual residence), or moving your “center of vital interests” there, you are liable for Italian tax on your total income from any country. Italian income tax uses progressive rates (IRPEF) and applies to global income.

But what counts as foreign income? Foreign income includes almost any type of earnings generated outside Italy, such as:

• Wages and salaries from non-Italian employers
• Freelance and consulting income earned abroad
• Rental income from foreign properties
• Dividends and interest from overseas bank accounts
• Pension and retirement payments from outside Italy
• Capital gains from foreign assets, shares, or funds

Essentially, if the income originates outside Italy, it generally needs to be declared.

The Worldwide Income Principle

As an Italian tax resident, all your global earnings fall under the IRPEF system, regardless of:

• Where the income is paid
• Whether the money stays abroad or is transferred to Italy
• Whether the payer is an individual, company, or financial institution

Because of this, keeping accurate records of foreign income and taxes paid is essential for proper filing.

Reporting Foreign Assets (RW form)

Every Italian tax resident must complete the RW section in their annual tax filing (Dichiarazione dei Redditi). This form captures foreign assets as well as income. 

The RW form is essential both for general tax compliance and for anti-money laundering purposes. Failure to declare all required foreign assets or income can result in significant penalties and increase your risk of an audit.

Avoiding Double Taxation

Italy maintains tax treaties (Convenzioni contro le doppie imposizioni) with most major economies. These agreements are designed so you do not pay income tax twice on the same earnings.

If you’ve already paid income tax in the country where your income was generated, you can usually claim a foreign tax credit against your Italian IRPEF liability.

To claim the credit, you need to retain and submit documentation proving the foreign tax was paid, along with tax assessments and certificates of tax residence as required.

So, to benefit from these agreements:

• Confirm whether your country has a tax treaty with Italy (the US does)
• Keep documentation of all foreign taxes paid
• Ensure proper classification of the income (employment, investment, pension, etc.)
• Apply tax credits correctly when filing your Italian return

Note: Treaties don’t eliminate the obligation to report income, they simply determine how it’s taxed and what credits you’re entitled to.

Most Common and Costly Mistakes Expats Make

Some frequent errors include:

• Not reporting foreign assets or income: It’s surprisingly common for new residents to miss overseas bank accounts, investments, or foreign property on their Italian filings. Even if no income is earned, non-disclosure can bring harsh fines and compliance checks.
• Failing to file the RW form: The RW section is mandatory for anyone who holds foreign assets, regardless of whether they produced any income during the year. Reporting is required for mere ownership.
• Overlooking bank account income: Interest, dividends, and capital gains from non-Italian bank or investment accounts must be declared and taxed, even if modest or previously taxed abroad.
• Misinterpreting residency rules or tax treaty terms: The start date of your Italian tax residency is critical. Misjudging this, or misreading treaty provisions with your home country, could lead to double taxation or unexpected tax bills.
• Missing Italian filing and payment deadlines: Italian personal tax returns and payments (often made via the F24 electronic payment form) have strict annual due dates. Late filing or payment triggers both penalties and interest.

Ultimately, awareness and proper planning are key to safeguarding your finances and staying compliant.

Key Takeaway

Avoiding the most common pitfalls, like failing to report foreign assets, overlooking bank account income, misinterpreting residency rules, or missing RW filings and deadlines, starts with staying organized and understanding your obligations as a tax resident in Italy.

To stay compliant, keep thorough records of your foreign income and assets, review any relevant tax treaties, file the RW section annually even for dormant holdings, explore special regimes (such as the flat tax for new residents) if eligible, and always respect Italian filing and payment deadlines using the F24 system. Technology-driven filing solutions like ItalianTaxes.com can also streamline the process and reduce stress.

By managing foreign income correctly and understanding how worldwide income, treaties, and reporting rules work, expats can avoid unnecessary penalties and confidently handle their international finances while enjoying life in Italy.

How ItalianTaxes Can Help

ItalianTaxes is a digital platform that makes tax compliance in Italy simple, transparent, and stress-free for expats, non-residents, and returning Italians. Backed by licensed professionals and international expertise, it blends smart technology with personalized guidance to help you file correctly, optimize your tax position, and stay compliant with ease. Whether you’re a remote worker, entrepreneur, investor, or retiree settling in Italy, ItalianTaxes is designed to make your taxes significantly smoother.

If you’re unsure about how to declare your foreign income, whether you need to complete the RW form, or how to avoid double taxation, ItalianTaxes can guide you step by step. You’ll be matched with professionals who understand Italian law and the realities of managing finances abroad, making the entire process simpler, safer, and fully compliant.

Ready to simplify your Italian taxes? Visit ItalianTaxes.com to get started today!

References:

https://taxsummaries.pwc.com/italy/individual/taxes-on-personal-income
https://italiancitizenshipassistance.com/italian-flat-tax-regimes-what-are-they-and-how-do-they-work/
https://www.grantthornton.global/en/insights/articles/expatriate-tax-Italy/
https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/01/TIES-Italy.pdf
https://www.moore-global.com/services/tax/international-corporate-tax/italy/
https://www.expertsforexpats.com/advice/tax/taxes-in-italy-for-expats
https://www.taxesforexpats.com/country-guides/italy/us-tax-preparation-in-italy.html
https://creativeplanning.com/international/insights/financial-planning/americans-moving-to-italy/
https://www.itaxa.it/blog/en/faq/how-does-the-principle-of-worldwide-income-taxation-affect-expatriates-in-italy-and-what-are-the-essential-strategies-for-managing-such-tax-liabilities-through-professional-tax-consultancy/

Do you have any questions about getting tax compliant in Italy? Leave them in the comments and the professionals at ItalianTaxes.com will get back to you.

The post Declaring Foreign Income in Italy – Expat in Italy: Your Roadmap to Smart Tax & Financial Planning (Part 4) appeared first on An American in Italy.

In our previous articles, we covered the essentials of moving to Italy, including how tax residency works and the fundamentals of IRPEF, Italy’s ordinary income tax, providing the foundation for understanding how income is taxed and what rates apply to residents.

Now, in this third article, we turn to something that can make a huge difference for expats: Italy’s special tax regimes. These offer substantial incentives for newcomers, but choosing the right one depends on your individual circumstances. By the end, you’ll know how each regime works, who qualifies, and how to select the ideal option for your move to Italy.

Special Tax Regimes in Italy: How to Choose the Right One and Save Big

Moving to Italy isn’t just about la dolce vita, it’s also about making smart financial choices that can dramatically impact how much tax you pay. Italy offers several special tax regimes designed to attract new residents, professionals, and retirees from abroad, each with its own benefits, eligibility rules, and strategic advantages.

Whether you’re a remote worker, entrepreneur, retiree, or academic, understanding these regimes is key to maximizing your savings and making the most of your move. 

In this guide, we’ll break down Italy’s main tax regimes for new residents, explain who they’re best suited for, and help you identify which one fits your profile and goals, giving you the essential information you need to understand the landscape. However, it’s crucial to verify the specific rules, requirements, and any recent updates before making a final decision. Ready to find your perfect match? Let’s go!

1. Ordinary Regime (IRPEF)

Best for: standard residents without special incentives
Benefits: progressive tax system with standard deductions and credits
Consideration: may be less advantageous for high earners or those with foreign income

 2. Impatriate Tax Regime

Best for: foreign employees, freelancers, or Italians returning for work
Benefits: 50% of Italian-source income tax-exempt (up to 60% with dependents), up to an annual income of €600,00
Eligibility: non-resident for 3 of the last 5 years; must work primarily in Italy
Duration: 5 years (and the person must commit to stay for at least a period of 4 years)
Application: notify employer or claim via Modello Redditi

 3. 7% Flat Tax for Foreign Pensioners

Best for: retirees relocating to specific towns in Italy
Benefits: 7% tax on all foreign income (pensions, investments, rentals); no IVIE/IVAFE; no inheritance/gift tax on foreign assets
Eligibility: non-resident in Italy for previous 5 years; relocation to towns with less than 20,000 residents in eligible southern/earthquake regions, like Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, Puglia and certain municipalities in central Italy 
Duration: up to 9 years
Application: elect via Modello Redditi, pay via F24

4. €200,000 Flat Tax for New Residents

Best for: high-net-worth individuals with foreign income  (investment income, dividends, capital gains, rents, pension, etc)
Benefits: flat €200,000/year on all foreign income; +€25,000 per family member; no reporting of foreign assets or inheritance taxes
Eligibility: non-resident for 9 of the last 10 years
Duration: up to 15 years
Application: elect via income tax return  (the “Modello Redditi”); optional advance tax ruling to confirm that they meet the conditions

5. Researchers & Academics (“Rientro dei Cervelli”)

Best for: academic professionals relocating for research or teaching
Benefits: 90% income tax exemption on their employment income
Eligibility: at least 2 years abroad in research/teaching; valid university degree or higher education; relocation for qualified academic role at an Italian university, research center or equivalent institution, private or public
Duration: 6 years standard; extended to 8–13 years based on children or property purchase
Application: claim via employer payroll or tax return; self-certification often accepted

Key takeaway

Choosing the right special tax regime can greatly impact how much you pay and how smoothly your financial life unfolds in Italy.

Remote workers often benefit most from the Impatriate Regime, while high earners may prefer the €200,000 flat tax for simplicity. Retirees can enjoy major savings with the 7% flat tax in Southern Italy, and academics and researchers gain exceptional relief through the Rientro dei Cervelli program.

Your ideal regime depends on your income, residency history, and goals, and with the right guidance, you can make the most of Italy’s incentives and start your new chapter with confidence!

Free resource

Want a deeper look at all the options and details? Download ItalianTaxes.com’s Free Guide to Italy’s Special Tax Regimes, a practical, easy-to-follow resource to help you compare regimes, check eligibility, and plan your move with confidence (scroll down the page linked and click “Download Guide”).

About ItalianTaxes.com

ItalianTaxes is a digital platform that makes tax compliance in Italy simple, transparent, and stress-free for expats, non-residents, and returning Italians. Backed by licensed professionals and international expertise, it combines smart technology with personalized guidance to help you file correctly, optimize your tax position, and stay compliant with confidence. Whether you’re a remote worker, entrepreneur, or retiree settling in Italy, ItalianTaxes is a platform that will make your move and your taxes easier.

Ready to simplify your Italian taxes? Visit ItalianTaxes.com to get started today.

References: 

Agenzia delle Entrate – Art. 24-bis and 24-ter TUIR (HNWI flat tax and pensioners regime, via official circulars and provisions)
Fisco Oggi (Agenzia Entrate magazine) – Forfait per i pensionati esteri (discussion of 7% regime, L.145/2018)
Italian Revenue Agency – Tax benefits for transferees of residence (Agenzia Entrate guidelines on special regimes)
KPMG Global Mobility Services – Update on Changes to the Expatriate Regime (analysis of 2024 impatriate rules)
Studio Rebecca & FiscoeTasse – analyses on “rientro dei cervelli” and impatriate extensions
Lowtax News – Regimi fiscali speciali in Italia (overview of special regimes for new residents, impatriates, and pensioners)
University of Milan @Work – Agevolazioni fiscali per chi rientra dall’estero (summary of impatriate and researchers regimes)

Have any questions or comments for ItalianTaxes.com? Ask them in the comments!

The post Special Tax Regimes in Italy – Expat in Italy: Your Roadmap to Smart Tax & Financial Planning (Part 3) appeared first on An American in Italy.

In our first article, we explored the big picture of moving to Italy and how Italian tax residency works — a crucial foundation for anyone planning to live or work here.

Today, we’re diving into the foundation of the Italian tax system: IRPEF (Imposta sul Reddito delle Persone Fisiche) — Italy’s ordinary income tax. If you plan to live, work, or even spend extended time in Italy, understanding IRPEF is essential. By the end of this article, you’ll have a clear grasp of how Italy’s progressive income tax works, what rates apply in 2025, and what expats and remote workers need to know before becoming tax residents.

This post contains affiliate links.

Understanding Italy’s IRPEF: A Complete 2025 Guide for Expats, Digital Nomads, and Remote Workers

What Is IRPEF?

IRPEF is Italy’s personal income tax, the primary tax that applies to salaries, self-employment income, pensions, and most investment income.

For Italian tax residents, IRPEF applies to worldwide income. For non-residents, it applies only to Italian-source income, such as a job in Italy, property rentals, or business income earned within the country.

In simple terms:

• Residents → taxed on global income;
• Non-residents → taxed only on Italian-source income.

This distinction makes a huge difference for expats and remote workers deciding whether to base themselves in Italy long-term.

Who Pays IRPEF and When Is It Paid?

You are considered an Italian tax resident if, for more than 183 days in a calendar year, you meet any one of the following conditions:

• You are officially registered as a resident (anagrafe) – although as of a 2024 decree this can be disputed;
• Your main home or habitual abode is in Italy;
• Your personal or economic “center of interests” (such as family, business, or property) is located in Italy.

If you don’t meet these criteria and don’t earn Italian-source income, you generally don’t owe IRPEF, even if you spend time in Italy temporarily (for example, as a digital nomad).

However, once you do meet any of these conditions, Italy becomes your tax home, and you are subject to taxation on your worldwide income.

Italy’s Income Tax Brackets and Rates (2025)

Starting in 2025, Italy introduced a simplified three-tier IRPEF structure. Here’s how the national rates work:

On top of these national rates, there are also regional and municipal surcharges, which vary by location:

• Regional tax: usually between 0.7% and 3.33%;
• Municipal tax: generally between 0.1% and 0.9%.

This means your total effective rate depends on where you live in Italy — Milan, Florence, and Rome can differ slightly.

Deductions and Tax Credits

Italy’s tax system provides numerous deductions and credits to help reduce your overall IRPEF liability. Some of the most common include:

• Family dependents: tax credits for dependent spouses and children;
• Social security contributions: mandatory contributions to the Italian pension system (INPS) are deductible;
• Medical expenses: certain healthcare costs exceeding a small threshold can be deducted.
• Mortgage interest: interest on loans for your primary residence may reduce taxable income.

These deductions can substantially reduce the amount of tax you owe, particularly for families and full-time employees.

Social Security Contributions in Italy

Beyond IRPEF, individuals working in Italy must pay social security contributions. For employees, these are automatically withheld by employers. For freelancers or self-employed professionals, payments are made directly to the INPS (Istituto Nazionale della Previdenza Sociale).

While these contributions fund healthcare and retirement benefits, they can significantly increase the total cost of employment or self-employment in Italy, something to factor in when negotiating salaries or freelance rates.

Digital Nomads and Remote Workers: What Really Applies

This is where many people get confused. The simple rule is that if you are not a tax resident in Italy and you do not earn Italian-source income, you do not owe IRPEF.

If you’re a digital nomad working remotely for a foreign company and spending fewer than 183 days per year in Italy, your foreign income typically remains untaxed in Italy. However, note that if you hold a Digital Nomad Visa to work in Italy for a year, you’ll generally be required to file taxes there, even if you work for a foreign company.

If you move permanently to Italy or meet the residency requirements (for example, staying long-term or establishing your main home there), you become a tax resident, and your worldwide income becomes taxable under IRPEF.

For those who do establish residency, Italy offers special tax regimes, such as the Impatriate Regime and the New Resident Flat Tax, which can dramatically reduce taxes for a set period. Strategic planning before relocating is essential to take full advantage of these benefits, and we will talk about them in our next article!

Key Takeaways

Understanding how IRPEF works is crucial for anyone earning income while living in Italy. The system is progressive and includes regional variations, but it also offers deductions and incentives that can help manage your overall tax burden.

For expats, freelancers, and remote workers, the most important step is to determine whether or not you are a tax resident in Italy. Once that’s clear, you can structure your income, contracts, and time in Italy in the most tax-efficient way possible.

In our next guide, we’ll explore Italy’s expat-friendly tax regimes, including the Impatriate Regime and the Flat Tax for New Residents, which can offer significant advantages to those relocating to Italy.

See you next week!

About ItalianTaxes.com

ItalianTaxes is a digital platform that makes tax compliance in Italy simple, transparent, and stress-free for expats, non-residents, and returning Italians. Backed by licensed professionals and international expertise, it combines smart technology with personalized guidance to help you file correctly, optimize your tax position, and stay compliant with confidence. Whether you’re a remote worker, entrepreneur, or retiree settling in Italy, ItalianTaxes is a platform that will make your move and your taxes easier.

Ready to simplify your Italian taxes? Visit ItalianTaxes.com to get started today.

References

PwC Tax Summaries – Italy: Individual Taxes on Income – https://taxsummaries.pwc.com/italy/individual/taxes-on-personal-income
PwC Tax Summaries – Italy: Residence Rules – https://taxsummaries.pwc.com/italy/individual/residence
KPMG – GMS Flash Alert 2025-045 – https://kpmg.com/xx/en/our-insights/gms-flash-alert/flash-alert-2025-045.html
Taxing.it – Personal Income Tax (IRPEF) Rates 2024–2025 – https://taxing.it/personal-income-tax-irpef-rates-2024-2/
Expatica – Taxes in Italy: A Guide for Expats – https://www.expatica.com/it/finance/taxes/taxes-in-italy-79671/
Chase Buchanan – The Italian Tax System for Foreign Nationals – https://chasebuchanan.com/italian-tax-system-for-foreign-nationals/

Did you miss our last post? Follow this link to read it now: Expat in Italy: Your Roadmap to Smart Tax & Financial Planning

And if you have any questions about IRPEF or Italian taxes, leave them in the comments below and we will ask the experts!

The post Italy’s Progressive Income Tax System – Expat in Italy: Your Roadmap to Smart Tax & Financial Planning (Part 2) appeared first on An American in Italy.