If you’re starting to work as a freelancer or consultant in Italy, you’ve probably heard about ritenuta d’acconto (withholding tax). But what exactly is it? How do you calculate it? And most importantly, should you consider it before opening a Partita IVA?

What Is Ritenuta d’Acconto?

First, if you have recently begun working as a freelancer/consultant in Italy, you might have already heard about ritenuta d’acconto withholding tax. However, you might be interested in knowing what it is and how it should be calculated. But more importantly, you might be asking yourself if it affects your decision regarding opening a Partita IVA.

It’s like a prepayment of your income tax. Instead of paying all your taxes when you file your annual tax return, a portion is already being paid throughout the year every time you receive payment for your work.

You complete a consulting project and invoice your client €1,000 for your services. Because ritenuta d’acconto applies, here’s what happens:

• Gross amount: €1,000
• Ritenuta d’acconto (20%): €200
• Amount you receive: €800

The client withholds that €200 and sends it to the tax office using a form called F24. You receive €800 in your bank account. However, that €200 isn’t lost, when you file your tax return at the end of the year, it’s credited toward your total tax liability.

Who Needs to Apply Ritenuta d’Acconto?

In Italy, the ritenuta d’acconto (withholding tax) applies to specific types of self-employed work. It determines when a client must withhold 20% of your compensation and pay it directly to the tax authorities.

1. Freelancers with Partita IVA (Not in Regime Forfettario)

Freelance or consulting work and have Partita IVA under the normal taxation system, an freelancer/consultant working with clients who are considert as sustitiuti d’imposta they have to apply ritenuta d’acconto on invoices and these include:

• Companies and businesses
• Other professionals with a Partita IVA
• Public institutions
• Any organization legally required to withhold taxes

In your case, your client will withhold 20% of the taxable amount and remit the remaining 80% to you. It should be noted that the amount paid will be offset against your annual taxes.

Important exemption

If you operate under the regime forfettario, you are exempt from ritenuta d’acconto. Every invoice must include this statement:

“Operazione non soggetta a ritenuta d’acconto ai sensi dell’art. 1, comma 67 della Legge 190/2014.”

2. Occasional Workers Without Partita IVA

When you provide occasional services without an active Partita IVA, your client will be required to pay a 20% ritenuta d’acconto. It will be deducted from your income and remitted directly to the tax authorities.

Occasional work is also subject to withholding because, as per Italian taxation rules, it still constitutes taxable self-employment income even though it is not conducted on a regular basis.

You fall into this category when:

• You provide sporadic, one-off, or infrequent consulting or freelance services
• Your total annual income from occasional work is below €5,000
• Your activity is not continuous, professional, or organized like a regular business

In these cases, your client pays you the net amount (80%) and handles the tax withholding on your behalf.

Important! 

In addition to companies and public bodies, condominiums apply a 4% withholding tax on professional invoices, regardless of the professional’s tax regime (unless exempt by law). The 4% is withheld from the taxable amount and paid via F24 by the condominium administrator.

Who Doesn’t Apply Ritenuta d’Acconto?

There are several situations where ritenuta d’acconto does not apply. You are exempt from this withholding tax when:

• You operate under the regime forfettario.

Freelancers in the flat-rate tax regime are not subject to withholding. Every invoice must include the standard exemption clause.

• Your client is a private individual without a Partita IVA.

Private clients are not “sostituti d’imposta,” so they cannot apply ritenuta d’acconto. In this case, you are paid the full amount.

• Your profession benefits from specific legal exemptions.

Certain types of income, such as some copyright-related payments, royalties, or other categories defined by law, are excluded from withholding requirements.

In these situations, you issue an invoice without ritenuta d’acconto, and you receive the full payment directly from your client.

How to Calculate Ritenuta d’Acconto

Calculating ritenuta d’acconto can feel confusing, especially when professional contributions or VAT are involved. In reality, the process is straightforward once you understand which amounts are included in the calculation and which are not.

Standard Calculation (20% Rate)

The standard ritenuta d’acconto is calculated at a rate of 20% on the gross amount of your service. To determine the withholding, you simply multiply the gross amount by 20%, then subtract that figure from the total to find your net payment.

For example, if your gross amount is €1,000, the withholding will be €200 (that is, €1,000 × 20%). The client pays this amount to the tax authorities on your behalf, and you receive the remaining €800 as your net compensation.

Reverse Calculation (From Net to Gross)

If you need to determine the gross amount starting from the net figure you want to receive, you must work backwards. Since ritenuta d’acconto reduces your payment by 20%, the gross amount is calculated by dividing the desired net amount by 0.80. For example, if you want to receive €800 after withholding, you divide €800 by 0.80, which gives a gross amount of €1,000. The withholding on that amount remains €200, leaving you with the €800 net payment you intended.

Calculation With Professional Social Security Contributions

Many professionals pay mandatory contributions to professional funds (casse previdenziali) like Inarcassa for architects and engineers, or ENPAP for psychologists.

Important rule: Ritenuta d’acconto is calculated on the amount excluding the professional contribution charged to the client (rivalsa previdenziale).

Example with 4% professional contribution:

• Service fee: €1,000
• Professional contribution (4%): €40 (charged to client)
• Subtotal subject to ritenuta: €1,000
• Ritenuta d’acconto (20%): €200
• Total invoice: €1,000 + €40 = €1,040
• Net payment: €1,040 – €200 = €840

VAT and Ritenuta d’Acconto

When VAT applies, remember:

• Ritenuta d’acconto is calculated on the amount before VAT
• VAT is added after calculating ritenuta

Example with 22% VAT:

• Service fee: €1,000
• Ritenuta d’acconto (20% of €1,000): €200
• VAT (22% of €1,000): €220
• Total invoice: €1,000 + €220 = €1,220
• Net payment: €1,220 – €200 = €1,020

Revenue Stamps (Marca da Bollo)

When your invoice exceeds €77.47 (excluding VAT), you must apply a €2 revenue stamp (marca da bollo).

This applies whether you’re issuing a formal invoice or a receipt for occasional work.

Ritenuta d’Acconto for Occasional Work (Prestazione Occasionale)

Occasional work applies when you carry out infrequent, non-continuous activities without a Partita IVA. It covers small, one-off projects that do not form an organized business, typically under €5,000 per year in total earnings. Examples include a single consulting assignment, occasional translation or content creation, speaking at an event, or temporary help on a project.

When you perform a prestazione occasionale, you don’t issue an invoice but a ricevuta per prestazione occasionale. Your client must withhold 20% as ritenuta d’acconto and also pay the required INPS contribution separately. You then declare this income in your annual tax return under redditi diversi.

Example: For a service worth €800, your receipt will show €800 as gross compensation. The client withholds €160 as ritenuta d’acconto, so you receive €640. INPS contributions (around 33.72% for 2025) are paid by the client in addition to your fee, not deducted from your payment.

There are a few important limits: the total annual ceiling for occasional work is €5,000, and although there is no per-client limit, repeating work with the same client may be considered continuous activity. If your income exceeds the €5,000 threshold or your work becomes regular, it’s time to open a Partita IVA to avoid penalties.

Ritenuta d’Acconto vs. Partita IVA: Which Should You Choose?

Choosing between occasional work (prestazione occasionale) with ritenuta d’acconto and opening a full Partita IVA is one of the most important early decisions for anyone starting freelance or professional activity in Italy. The right choice depends on how often you work, how much you expect to earn, and how committed you are to building a long-term business.

Feature	Ritenuta d’Acconto (Occasional Work)	Partita IVA (Freelance Business)
Annual Earnings	Limited to €5,000 total	No income limit
Continuity of Work	Must be occasional and non-continuous	Can work regularly with multiple clients
Startup Requirements	No registration needed	Must register with Agenzia delle Entrate
Paperwork	Simple receipts; minimal records	Invoices, declarations, VAT filings (unless forfettario)
Tax Rate	Withholding + ordinary income tax	Flat 5%/15% (forfettario) or ordinary regime
VAT (IVA)	Not applied	Charged to clients unless in forfettario
Professional Image	Low (seen as temporary)	High (full business status)
Expense Deductions	Not allowed	Allowed (forfettario uses fixed coefficients)
Pension Contributions	Not mandatory unless thresholds exceeded	Mandatory contributions to INPS or professional fund
Best For	Testing ideas, very occasional work	Building a real and scalable business

Making the Right Choice for Your Situation

Ritenuta d’acconto is more than a simple withholding tax, it’s a practical entry point into professional work in Italy. Knowing when it applies, how to calculate it, and how it compares to a Partita IVA helps you make informed decisions about your career and business growth.

• Ritenuta d’acconto withholds 20% of your payment as an advance on income tax.
• It applies to freelancers with a Partita IVA (outside regime forfettario) and to occasional workers.
• Occasional work under ritenuta d’acconto is ideal for testing business ideas, provided total income stays under €5,000 per year.
• The regime forfettario offers the best balance of tax benefits and simplicity once you’re ready to formalize your activity.
• Your client handles the withholding and payment to tax authorities, and you can credit the withheld amounts against your annual tax liability.

Begin with prestazione occasionale and use it as a testing ground for your business model with low risk. As soon as your business expands and income becomes more regular, upgrade your business form to Partita IVA, preferably with the regime forfettario.

Whether you are just getting on your feet or are formalizing your freelance business, knowledge about ritenuta d’acconto will get you on your feet and ready to tackle Italy’s taxation system.

Would you like to read more about similar subjects? Take a look at our related articles here: ATECO code Italy, tax residency criteria and financial investments for Italian residents.