{"id":128271,"date":"2026-08-07T19:43:49","date_gmt":"2026-08-07T17:43:49","guid":{"rendered":"https:\/\/labre.nl\/2026\/08\/07\/how-are-corporations-and-partnership-companies-taxed-in-italy\/"},"modified":"2026-09-10T22:44:37","modified_gmt":"2026-09-10T20:44:37","slug":"how-are-corporations-and-partnership-companies-taxed-in-italy","status":"publish","type":"post","link":"https:\/\/labre.nl\/en\/2026\/08\/07\/how-are-corporations-and-partnership-companies-taxed-in-italy\/","title":{"rendered":"How are corporations and partnership companies taxed in Italy"},"content":{"rendered":"
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If you are planning to establish or acquire a company in Italy, it is essential to analyze the tax regime applicable to corporations and partnerships in Italy.<\/p>\n

Taxation of corporations<\/h2>\n

In Italy, the main types of corporations include the Limited Liability Company (Società a responsabilità limitata – S.r.l.<\/em>) and the Joint-Stock Company (Società per Azioni – S.p.A.<\/em>). Corporations in Italy are subject to Corporate Income Tax (Imposta sul Reddito delle Società – IRES<\/em>). The corporate income tax rate is currently 24%. Additionally, Italian corporations are subject to the Regional Tax on Productive Activities (Imposta Regionale sulle Attività Produttive – IRAP<\/em>). The IRAP rate is currently 3.90%, though it may vary depending on the region.<\/p>\n

The IRES taxable base is determined starting from the company’s statutory profit or loss, adjusted with tax adjustments — increases and decreases — in compliance with Italian tax law.<\/p>\n

For IRES purposes, business expenses such as personnel costs, rent, purchase of goods, service costs, depreciation of fixed assets, and interest expenses are generally deductible. However, some expenses, such as those for company cars, telecommunications, meals, and lodging, are subject to deductibility limits.<\/p>\n

It is important to note that interest expenses are deductible only under specific conditions. Specifically, excess interest expenses (those exceeding interest income) are deductible only up to 30% of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).<\/p>\n

Tax losses incurred in the first three fiscal years can be carried forward indefinitely and fully offset against taxable income in future years. Tax losses generated starting from the fourth fiscal year can also be carried forward indefinitely; however, they can only offset up to 80% of taxable income in subsequent fiscal years.<\/p>\n

Corporations also benefit from a partial tax exemption (participation exemption – PEX) for capital gains arising from the disposal of shares, provided certain conditions are met:<\/p>\n