EnglishKey tax changes effective from 1 January 2026
The Italian Budget Law 2026 (Law no. 199 of 30 December 2025), in force from 1 January 2026, introduces a set of measures impacting individuals and businesses. Key changes include: (i) a reduction of the IRPEF second bracket (from 35% to 33% for taxable income between €28,000 and €50,000); (ii) confirmation of the renovation tax deduction at 50% for primary residences (36% for other properties), alongside the renewal of the furniture bonus up to €5,000; and (iii) a tightening of the short-term rental regime, with the presumption of business activity triggered from the third property used for short-term leases. Our team is available to assess the practical impact of these changes and support clients in 2026 tax planning and compliance.