Sole proprietorship or company in Italy: tax comparison
Taxes and contributions for a sole proprietor under each available system and for your own company, for a resident of the chosen country with the same profit.
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Form
Forfettario regime, 15%
Sole proprietorRegime forfetario (legge 23 dicembre 2014, n. 190)
Income is 78% of revenue (actual expenses are ignored). A 15% tax replaces IRPEF, the regional and municipal surcharges and IRAP; INPS contributions of 26.07% on that income reduce the tax base.
Conditions
Prior-year revenue up to EUR 85,000; if EUR 100,000 is exceeded in the current year the regime ends at once. No stake in a tax-transparent partnership or control of an SRL working for the same clients.
The 78% coefficient is for professional services (ATECO 69–75, including consulting 70.22); software and IT services (ATECO 62) use 67%. No VAT is charged; prior-year employment income no more than EUR 35,000.
Sole proprietorRegime forfetario — aliquota agevolata 5 % per le nuove attività
Same as forfettario, but the tax is 5% in the start-up year and the following 4 years.
Conditions
New activity: no business or professional activity in the previous 3 years, and the new business is not a continuation of earlier employment or self-employment.
Other conditions and limits (EUR 85,000 / 100,000, 78% coefficient) are as for the standard forfettario.
Sole proprietorLavoratore autonomo (partita IVA) in regime ordinario
Income = revenue minus actual expenses. INPS Gestione separata contributions of 26.07% of income are deducted; the rest bears IRPEF at 23/33/43% plus the Lazio regional and Rome municipal surcharges.
Conditions
No revenue limit. VAT registration from the first euro (22%); individuals do not pay IRAP.
Surcharges are for Rome: regional 1.73% (up to EUR 28,000) or 1.73–3.33% above; municipal 0.9% for income above EUR 14,000. Other cities have other rates.
CompanySocietà a responsabilità limitata unipersonale (SRL)
The company pays IRES at 24% and IRAP at 4.82% (3.9% + Lazio's 0.92 increase) on profit; dividends to the owner bear a final 26% tax. A shareholder working in the company pays minimum INPS contributions as a trader.
Conditions
Minimum INPS Gestione commercianti contributions (EUR 4,611.64 for 2026) apply if the shareholder works in the company personally and regularly; INPS may claim contributions on the share of SRL profit as well — this is disputed and not included.
IRAP is for Rome (Lazio): 3.9% + 0.92 points from 2026; other regions have other rates. With no staff, the IRAP base is taken as equal to profit. A fixed deduction of EUR 8,000 is taken off the base (if the base is not above EUR 180,759.91; then EUR 6,000 / 4,000 / 2,000 and none above EUR 180,999.91). VAT from the first euro (22%) is not included.
Business activity: IT / consulting services for business clients (professional without a professional pension fund, e.g. ATECO 70.22 management consulting)
One owner, an Italian tax resident living in Rome (Lazio), with no employees, no other income and no children, full year.
INPS contributions are treated as paid in the same year and fully deducted from the tax base; VAT is not included.
For the SRL the owner draws no salary or director's fee; after-tax profit is either paid out in full as dividends or kept in the company.
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