Quick answer — Italian SRL at a glance. An Italian SRL is formed by notarial deed and registered with the Companies Register, usually within one to two weeks, with share capital from €1; the simplified SRLS uses standard articles and lower notary costs. Profits pay IRES at 24% plus regional IRAP of around 3.9%, and dividends are taxed at 26% for individuals. Relocating founders should compare it with the impatriate regime and the 15% flat-rate forfettario for small freelancers.
Italy offers several routes for location-independent professionals who relocate: a digital nomad visa for highly skilled remote workers, an impatriate regime that partially exempts the income of qualifying new residents, a 15% flat-rate regime for small freelancers (5% for new activities in their first five years), and a flat tax on foreign income for wealthy new residents. A company is only one of the options — and often not the cheapest.
An SRL has real advantages: limited liability, credibility with Italian and international clients, and the ability to retain profits. But with IRES, IRAP and 26% on dividends, it is rarely the most tax-efficient choice for a solo founder who also qualifies for a personal regime.
An SRL is often unnecessary for freelancers below the forfettario ceiling or for remote employees under the impatriate regime. It is not designed for locally employed expats or cross-border commuters.
Comparing Southern European options? See our guide to digital nomad visa company setup.
If you are comparing destinations, see the Spanish SL vs autónomo and the Greek IKE registration costs.
You become Italian tax resident if, for most of the tax year, you are registered in the resident population, have your domicile or habitual residence in Italy, or are physically present there. Since 2024, presence alone for most of the year can be enough.
The impatriate regime applies to employment and self-employment income. Salary paid by your own SRL can qualify if you meet the conditions; SRL profits and dividends do not. Check the latest conditions, which were tightened in 2024.
An SRL pays IRES at 24% on profits and IRAP, a regional tax on value of production, at a base rate of around 3.9% that varies by region. Dividends paid to individuals are taxed at 26%.
Amounts are indicative.
For relocating founders who qualify, the impatriate regime usually beats an SRL. The SRL makes more sense once profits are retained, or when the business needs a corporate structure.
Italian banks open accounts for SRLs in formation; expect KYC on all shareholders, the codice fiscale and a business plan. Online banks are common for day-to-day operations.
The Italy Business Bank Comparison Guide compares the main options for new SRLs — get it when you start your Italian setup with Heavnn.
An SRLS is a simplified SRL with share capital between €1 and €9,999.99, standard articles and reduced notary costs. A regular SRL allows custom articles and any capital amount from €1.
IRES at 24% on profits and IRAP, a regional tax of around 3.9% that varies by region. Dividends to individuals are taxed at 26%.
It applies to employment and self-employment income, including a salary from your own SRL if you meet the conditions. It does not apply to SRL profits or dividends.
It is a flat-rate regime for self-employed people with revenue up to €85,000, taxing a deemed profit at 15%, or 5% for new activities in their first five years.
Yes. Foreigners can own 100% of an SRL, subject to reciprocity rules for some non-EU nationals, and need an Italian tax code.
In Italy, the cheapest legal route depends on your regime. Heavnn compares SRL, forfettario and impatriate options for you.
Start your Italian setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
