Italian Tax: Everything You Need to Know About Tax Returns in Italy
Tax filing in Italy is not an easy process for expats, international workers, and cross-border investors. This guide describes the ins and outs of italian tax code, italian tax forms, deadlines, and application of main tax return types. As an italian resident or non-resident taxpayer with italian-source income, knowing italian tax law requirements is important in order to avoid fines.
Learn more in our complete guide about Italian tax return.
What Are Tax Returns in Italy?
The Italian tax return (“dichiarazione dei redditi“) is an official document that individuals must file to report the income they earned during the year. It is used to determine how much tax is owed or whether a refund is due. There are two:
- Form 730 (Modello 730): Simplified tax return for workers and pensioners. Frequently issued in 730 precompilato (pre-filled) version.
- Modello Redditi Persone Fisiche: Also known as “Modello Redditi”, used by self-employed, freelancers, or individuals with complicated income structures or foreign investments.
Both formats are used to determine final income tax and have to be filed every year.
Who Must File a Tax Return?
Tax residents of Italy have to report their total worldwide income. This includes income from employment, pensions, investments, rental income, overseas assets, etc.
Non-resident individuals must report only income from Italian sources. Some individuals may not have to submit a return if their tax is withheld at source and no adjustments need to be done.
How to File Your Tax Return in Italy
- Collect Your Income Documents: employment or pension statements, payslips (if you have a foreign employer), rental contracts, bank interest, etc.
- Choose the Correct Form:
- Use Form 730 (Modello 730) if you are employed or retired.
- Use Modello Redditi PF (Modello Redditi) if self-employed, a business owner, or with foreign income and/or investments.
- Collect Your Deductions and Credits: expenses for healthcare, education, mortgage, dependent family members, etc.
- Submit Electronically or via Intermediary: Tax returns in Italy can be filed online through the Revenue Agency portal or with the help of an intermediary. The support if a professional is preferred when you need to make substantial changes to the information reported in the precompilato (pre-filled) version available on Revenue Agency portal.
- Pay Taxes Using F24: If there is a balance to be paid, the taxpayer must use the F24 payment form. If you file a Form 730 (Modello 730) you may have the result of the tax return debited or credited in your payslip or pension payment.
Deadlines to Remember
The deadlines for filing a tax return and paying taxes in Italy differ depending on whether you use Form 730 (modello 730) or Modello Redditi PF (Modello Redditi):
- Form 730 (Modello 730):
- Filing deadline: September 30, 2025
- Tax payments: If there is any tax to be paid (or refunded), it is automatically withheld (or refunded) in your salary or pension by your employer or pension authority, starting from July.
- Modello Redditi PF (Modello Redditi):
- Filing deadline: Until October 31, 2025
- Tax payments:
- First installment: by June 30, 2025
- Second installment (if applicable): by December 1, 2025
Late filing within 90 days is allowed with a minor penalty. After 90 days, the return is considered omitted.
Common Mistakes to Avoid among International Taxpayers
- Failure to report foreign assets on Form RW
- Missing tax filing and payment deadlines
- Failure to check appropriate application of Double Taxation Treaties
Foreign Income and Double Taxation
If you receive income from outside Italy while living in Italy, you might qualify for a tax credit in Italy. This prevents being taxed twice for one income. But proof of having paid tax overseas and proper records have to be collected.
The Role of the RW Form
Taxpayers holding financial assets outside Italy (banking accounts, shares, etc.), including real estate, have to report them in the RW form. This is required in order to calculate IVAFE (tax on overseas financial assets) as well as IVIE (tax on overseas real estate).
Penalties for not submitting or filling in incorrectly the RW form range between 3% to 15% on undeclared amounts, plus penalties levied on the unpaid tax. Penalties are higher in case of missed reporting of assets and incomes from countries included in a Blacklist.
Amending or Correcting Tax Returns
Italian law permits filing an amended return for 5 years. If the adjustment results in a taxpayer’s favor (e.g., due to previously omitted deductions), a refund can be claimed. If instead it leads to a higher tax liability, penalties will apply—but these may be reduced by using the “ravvedimento operoso” procedure.
Recommendations
Navigating the Italian tax system can be complex, especially for international taxpayers dealing with cross-border income, foreign assets, and tax treaties. Properly managing your tax return means avoiding costly mistakes and ensuring full compliance with Italian law.
Here are some key recommendations:
- Always verify whether you’re required to file a tax return in Italy based on your residency and sources of income;
- Keep accurate records of both Italian and foreign income, including documentation of taxes paid abroad;
- Don’t forget to submit the RW Form if you hold financial assets or real estate abroad;
- Respect all deadlines and, in case of errors or omissions, act promptly using the “ravvedimento operoso” procedure to reduce penalties;
- Seek professional assistance—especially if your situation involves foreign income, investments, or complex residency issues.
Arletti & Partners, with expertise in assisting international taxpayers, can support you throughout the entire process.
Take a look also at our guide on taxes in Italy for expats.
