Flat-Rate Tax Regime
Plain English
It's a simplified tax regime for freelancers and small business owners with a partita IVA. You pay a flat 15% (or 5% in the first 5 years if you qualify) instead of progressive IRPEF, on a coefficiente that depends on your sector. There's no VAT to charge and bookkeeping is much lighter.
Why it matters
For most new freelancers it's the cheapest legal way to operate, as long as your yearly revenue stays under 85,000 euros and you don't break the other limits. Going over kicks you out into the ordinary regime, which is more expensive and complex.
Real example
"In her first year as a freelance translator in Florence, Camille earned 28,000 euros under the regime forfettario. Her commercialista calculated her tax at 5% of 78% of revenue, which came to a fraction of what she would have paid otherwise."
Common confusion
INPS contributions aren't included in the flat tax. You still pay them on top, either to Gestione Separata or your professional cassa, and they\'re often larger than the tax itself.
Official source
Agenzia delle Entrate