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The Myth of Italy’s 43% Tax Rate: What Expats and Retirees Really Pay

In this article, we debunk the myth of an unbearable Italian tax burden and explain how the tax system actually works for individuals.

11/06/2025
21/01/2026
truth-about-italy-43-tax-rate

It’s tax season again in Italy (paper submissions due by 30 June 2025, online by 31 October 2025). For many expats, it’s accompanied by a wave of anxiety, stoked by horror stories and the persistent legend that everyone pays 43% tax rate. While the top rate gets a lot of clicks, comments, and anger, it is misleading for most people. In reality, the effective tax burden for many Italian residents – especially expats and retirees – is much lower once you account for progressive brackets, special regimes, deductions, allowances, and other reliefs. And let’s not get us started on the…

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