2027 Budget Bill at the Council of Ministers: flat-tax regime (forfetario) at €100,000, VAT at 85,000
Updated to
In short: on 28 October 2026 the Council of Ministers approved the draft 2027 budget law (disegno di legge di bilancio). For self-employed workers with VAT numbers (partite IVA), the official press release says three things: the threshold for access to the flat-tax regime "for income tax purposes" rises from €85,000 to €100,000; the VAT exemption stays at €85,000 "pending authorisation from the European Union"; and the 33% IRPEF rate is extended to income up to €55,000. It is not law yet: it needs the approval of the Chamber of Deputies and the Senate.
What the Council of Ministers press release says
Council of Ministers meeting no. 195, held on Wednesday 28 October 2026 at Palazzo Chigi, approved, on the proposal of the Minister of Economy and Finance (Ministro dell'economia e delle finanze), the draft law on the State budget forecast for 2027 and the multi-year budget 2027-2029. The press release describes the tax measures affecting self-employed workers as follows:
- Flat-tax regime (forfetario). "The threshold for access to the flat-tax regime for income tax purposes rises from €85,000 to €100,000."
- VAT. "For the purposes of the VAT exemption the threshold stays at €85,000, pending authorisation from the European Union."
- IRPEF. "The budget bill extends the 33% IRPEF rate to income up to €55,000."
The press release also gives the overall value of the budget: about 26 billion euros in 2027 and 27 billion in 2028. The other measures (families, health, housing, businesses) do not concern the flat-tax regime and are not covered here.
What would change compared with today
| Point | In force (2026) | In the draft law, according to the press release |
|---|---|---|
| Access threshold for the flat-tax regime (income tax) | €85,000 | €100,000 |
| VAT exemption threshold | €85,000 | Stays at €85,000, pending authorisation from the European Union |
| 33% IRPEF rate | Up to €50,000 | Up to €55,000 |
For a flat-tax filer with revenue between €85,000 and €100,000 the practical reading is this: the threshold for income tax would rise, but VAT would still be due from €85,000, because the press release does not extend the VAT exemption beyond that limit. Why the EU directive sets the ceiling is explained in flat-tax regime at €100,000 but VAT from €85,000; what happens today to those who exceed €85,000 is in exceeding €85,000 under the flat-tax regime.
On IRPEF, the press release says €55,000, not the €60,000 that the press reported in the previous days. With the brackets in force (33% up to €50,000, 43% above), moving the limit by €5,000 is worth at most €500 a year for those with taxable income of €55,000 or more. This is our own calculation on the press release figures, not an official figure. Flat-tax filers do not pay IRPEF and are not affected. The full picture is in IRPEF 2027 at 33%: who gains and how much, written on the €60,000 hypothesis and to be re-read with the new figure.
What is still a hypothesis
- The text. The press release summarises the measures but is not the draft law itself: at the time of writing we have not read the articles, so we do not know from when the new threshold applies, whether it applies to the previous year's revenue as it does today, or which conditions accompany the change.
- VAT. The exemption stays at €85,000 "pending authorisation from the European Union": the press release does not say whether and when that authorisation will be requested or granted.
- Parliament. The draft law can change through amendments: until the final vote and publication in the Official Gazette, nothing is law. Until then, for the flat-tax regime, art. 1, paragraphs (commi) 54-89, of Law (legge) no. 190 of 2014 and the €85,000 threshold apply.
- Other limits. The press release does not mention the limit on employment income (€35,000 for 2025-2026, €30,000 without an extension): we do not attribute to the budget bill measures that it does not mention.
Next steps
The draft law must be submitted to Parliament and voted by both chambers. For the rules to apply from 1 January 2027, the law must be approved and published by 31 December 2026. The status of each step, with date and source, is in the table of 2027 budget law and flat tax: steps and dates, updated with each official act. The text of the draft law, once filed, can be read on the bill's page at senato.it or camera.it.
The general overview of the cluster, with the guides on coefficients, INPS contributions and choice of regime, is in the hub 2027 flat tax for self-employed workers.
Sources
- Government, press release of the Council of Ministers no. 195 of 28 October 2026 (approval of the draft 2027 budget law), accessed 29/10/2026.
- Government, summary record of the Council of Ministers no. 195 (press conference on the draft 2027 budget law), accessed 29/10/2026.
- Law no. 190 of 23 December 2014 (L. 23 dicembre 2014 n. 190), art. 1 paragraphs 54-89 (flat-tax regime in force), accessed 29/10/2026.
Frequently asked questions
Does the flat-tax regime (forfetario) rise to €100,000 in the 2027 budget bill?
The press release of the Council of Ministers of 28 October 2026 says the threshold for access to the flat-tax regime for income tax purposes rises from 85,000 to €100,000. This is a measure in the draft budget law, not yet law: it still needs the approval of the Chamber of Deputies and the Senate.
Does the VAT threshold rise to €100,000 with the 2027 budget bill?
No, according to the official press release: for the VAT exemption the threshold stays at €85,000, pending authorisation from the European Union.
How far does the 33% IRPEF rate extend in the 2027 budget bill?
The press release of the Council of Ministers of 28 October 2026 says the budget bill extends the 33% IRPEF rate to income up to €55,000. Today the 33% rate applies up to €50,000. Press reports had mentioned €60,000, but the official figure is €55,000.
When does the 2027 budget law become final?
After the vote of the Chamber of Deputies and the Senate and publication in the Official Gazette (Gazzetta Ufficiale). For the rules to apply from 1 January 2027, this must happen by 31 December 2026. The draft approved by the Council of Ministers can still change through amendments.
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- 2027 flat tax for self-employed workers: what changes and what is still a hypothesis
- 2027 budget law and flat tax: stages, dates and official texts
- Flat-rate regime above €85,000: what happens, and what changes with the €100,000 limit
- Flat-rate regime at €100,000 but VAT from €85,000: what changes on invoices
- Flat-rate regime and employment: the limit of 30,000 or 35,000 euros
- Forfetario or ordinary regime: which is really better, with calculated examples
- Flat-rate profitability coefficients by ATECO code: the table
- INPS contributions in the flat-rate regime 2026: schemes and 35% reduction
- Flat-rate regime at 5% for new businesses: requirements, duration and when it is lost
- IRPEF 2027 at 33% up to €60,000: who benefits and how much, in euros