An Italian IT freelancer, age 38, earned €112,000 in 2025 billing software consultancy services to a mix of Milan-based tech firms and a German SaaS company. The crossing of €100,000 in the autumn triggered uscita immediata from the forfettario, and a rapid calculation revealed an effective tax burden of slightly over 53% for the year. The question that reached BMC was not “how do I pay less?” but “what is the correct structure for the next phase of my career, and does Spain play a role?” This insight provides the technical framework for answering that question — not from a promotional perspective, but with the precision such a decision requires.
The profile is becoming increasingly common. Italy’s forfettario flat-rate scheme served a generation of freelancers well at moderate income levels. As digital consulting billings compound, the scheme either caps at its revenue ceiling or, once crossed, gives way to a tax burden that compresses growth capital. Spain — specifically Madrid and Barcelona — has emerged as a credible alternative headquarters, driven not merely by the Beckham regime but by a combination of treaty provisions, corporate structures, and social security coordination that, taken together, produce a materially different outcome.
The planning required is multi-jurisdictional and sequential. There is no single switch to flip. What follows is a systematic analysis of each layer: the Italian exit from forfettario, the Italian corporate wrapper, the exit tax on departure, the bilateral treaty, and the Spanish landing — including the specific conditions under which the Beckham regime becomes accessible to this profile.
Forfettario exit: why you leave and what opens up
The forfettario scheme, governed by L. 197/2022 art. 1 commi 54-89, is a flat-rate substitutive tax regime available to Italian self-employed individuals and individual entrepreneurs. In place of ordinary IRPEF, regional and municipal surtaxes, and IRAP, the taxpayer pays a single flat rate — 15% ordinarily, reduced to 5% for new businesses in their first five years — applied not to net profit but to a notional income calculated by multiplying gross revenue by an ATECO-code-specific coefficiente di redditività. For IT consulting and liberal professions, this coefficient is typically 78%, meaning that 78% of revenue is deemed taxable income.
At moderate revenue levels, the arithmetic is compelling. A freelancer earning €60,000 with a 78% coefficient pays 15% on €46,800 — an effective rate of approximately 11.7% of revenue. INPS Gestione Artigiani contributions remain due but are calculated on the same notional base, and IRAP does not apply.
The scheme has two exit thresholds. Under the rules as they stand in 2026 — unchanged by the Legge di Bilancio 2025 — ordinary exit occurs when annual revenue exceeds €85,000. In this case, the taxpayer remains in the forfettario for the year in which the breach occurs but is assessed under the ordinary regime from the following tax year. The second threshold, at €100,000, triggers uscita immediata: the exit operates from the specific operation (invoice, receipt, or payment depending on accounting method) that causes revenue to cross the €100,000 mark. From that transaction onwards, ordinary IRPEF, IRAP, and INPS rules apply — including the obligation to register for VAT from the date of the breach.
What opens up outside the forfettario is both operationally complex and fiscally punishing at high income levels. IRPEF becomes progressive: 23% up to €28,000, 35% on the band between €28,000 and €50,000, and 43% on all income above €50,000. Regional and municipal surtaxes (addizionali regionali and comunali) add 1% to 3% depending on the municipality. INPS Gestione Artigiani or Gestione Separata applies at approximately 24% of taxable income above the minimum contribution threshold, with a fixed minimum annual payment of approximately €4,460 (2026 figure). IRAP, at 3.9% standard rate, applies to freelancers who can demonstrate autonomous organisation — a contested concept but increasingly applied by the Agenzia delle Entrate to structured consulting operations.
The aggregate of these levies on an Italian IT freelancer earning €150,000 net of deductible costs routinely reaches 50–55% effective burden. This is the precise fiscal environment that makes the question of structural restructuring — whether in Italy alone or in combination with Spain — both legitimate and urgent.
Incorporating an Italian SRL before relocating
The standard first response to forfettario exit at income levels above €80,000–€100,000 of net profit is incorporation of an Italian società a responsabilità limitata. This is not primarily a Spain-related step — it is a domestic Italian optimisation that becomes even more powerful if Spain subsequently enters the picture.
The Italian SRL pays IRES at 24% on taxable income. IRAP, at a base rate of 3.9%, applies to the net value of production (valore della produzione netta), which for a service company approximates closely to gross margin minus personnel costs. The combined effective IRES+IRAP burden is approximately 27.9% for a service SRL without significant employment — before any deductions available at the corporate level (amortisation, director’s remuneration, rents, professional expenses).
The structure works through a deliberate split between two income flows. The director-shareholder receives a compenso amministratore — the administrator’s remuneration — which is deductible for the SRL and taxable for the individual under ordinary IRPEF. The optimal compenso level is determined by modelling the combined SRL tax on retained profit against the individual’s marginal IRPEF on the remuneration tranche, including social security charges. At moderate income levels, setting the compenso at the point where the individual’s marginal rate approaches 35% — approximately €28,000–€50,000 — and retaining further profit in the SRL at 27.9% maximises overall efficiency.
Profit retained in the SRL and subsequently distributed as dividends to an individual shareholder is subject to 26% definitive withholding under art. 27 DPR 600/1973. This withholding is final and not creditable against IRPEF — it is collected at source by the distributing SRL. This 26% definitive rate makes the SRL particularly efficient for freelancers who can afford to defer dividend extraction: the SRL retains profit at 27.9%, the shareholder pays 26% only when dividends are actually distributed, and the timing of distribution is a tax planning decision.
The incorporation process involves a notary deed (atto costitutivo), with costs typically in the range of €1,500–€2,500, statutory minimum capital of €1 (SRL semplificata) or €10,000 (ordinary SRL), and registration with the Camera di Commercio and the Agenzia delle Entrate. An accounting professional (commercialista) is required by statute for certain compliance filings. The SRL breakeven versus individual ordinary regime is typically reached at €60,000–€80,000 of annual net profit — the precise figure depends on the ATECO code, regional IRAP rates, and the chosen compenso level.
For the Italian freelancer considering Spain, incorporating the SRL before the move is important for two reasons. First, the SRL continues to operate in Italy after the individual leaves — serving Italian clients, holding contracts, and managing VAT relationships in Italy — while the individual’s personal tax residence migrates. Second, the SRL structure pre-establishes the corporate layer that will interact with the 1977 Italy-Spain DTT dividend provisions and the exit tax rules under art. 166 TUIR, which we address below.
Italian holding and the art. 87 TUIR PEX
Once the operating SRL is established and profitable, the next structural question is whether to insert a holding company above it. The economic rationale is to capture future value growth at the holding level rather than at the individual level, and to access the Participation Exemption (PEX) under art. 87 TUIR when the operating SRL is eventually sold or restructured.
The PEX excludes 95% of capital gains from qualifying shareholding disposals from the corporate IRES base, with the remaining 5% taxed at 24% — producing an effective tax rate on the gain of 1.2%. The same 95% exclusion applies to qualifying dividends received by the Italian holding from the operating SRL. This creates a highly tax-efficient structure for accumulating value within the corporate chain.
Four cumulative requirements under art. 87 TUIR must be satisfied. The holding must have classified its investment in the subsidiary as a financial fixed asset (immobilizzazione finanziaria) from the first financial year of ownership. The holding period must have been continuous for at least twelve months prior to the disposal. The subsidiary must not be resident in a blacklisted jurisdiction. And the subsidiary must carry on an effective commercial activity — the Agenzia delle Entrate scrutinises this requirement for holding-of-holding structures.
A critical regulatory development requires mention here. Decreto Fiscale 38/2026 restored the PEX exclusion rate to 95% following a brief and controversial reversion to 50% under L. 199/2025. Practitioners who assessed structures during the L. 199/2025 period should re-run their models — the economics of the holding layer change materially between 50% and 95% exclusion.
The optimal moment to insert the holding layer is when the operating SRL is still at an early stage of value accumulation — before significant goodwill or client relationships have generated a high market value. Once inserted, the holding owns the SRL shares, and future value growth (and eventual exit proceeds, if any) are captured at the holding level, accessible under PEX. BMC typically recommends considering this step when the operating SRL exceeds €500,000–€800,000 in annual turnover and there is a credible medium-term scenario of a partial or full exit.
Italian art. 166 TUIR exit tax when transferring residency
Article 166 TUIR is the Italian provision that taxes unrealised capital gains embedded in significant shareholdings and business assets when an individual transfers their tax residency outside Italy. For our freelancer who holds shares in an Italian SRL, this provision is directly applicable.
The taxable event is the transfer of residency itself. The taxable base is the difference between the market value (valore normale) of the shareholding at the date of transfer and its tax cost (costo fiscalmente riconosciuto). The market value must be supported by a formal valuation — for an SRL, this typically means a sworn appraisal or a documented net present value analysis. The resulting notional gain is added to the individual’s IRPEF base for the year of departure and taxed at ordinary marginal rates.
Italy has implemented Directive (EU) 2016/1164 (ATAD I), which requires member states to allow deferral of the exit tax when the destination country is within the EU or the EEA. When relocating to Spain — an EU member state — the taxpayer may elect to pay the exit tax in five equal annual instalments. Under the ATAD I implementation, this deferral does not require the provision of bank guarantees or other security. The instalment election must be made in the tax return for the year of departure.
The practical implications are significant. A freelancer whose Italian SRL was incorporated at €1 capital and has grown to a market value of €400,000 faces a notional gain of approximately €400,000 on departure. At a 43% marginal rate, the gross IRPEF charge would be approximately €172,000. Spread over five instalments, this becomes approximately €34,400 per year — manageable within the context of ongoing advisory income, but requiring careful cash-flow planning. The value assigned to the shareholding at exit also establishes the reference cost for any future disposal: if the SRL is sold years later for €600,000, the Italian exit-taxed departure value of €400,000 is the base, limiting the gain to €200,000.
BMC coordinates the art. 166 TUIR valuation and notification process with Italian tax counsel as an integral element of the broader exit tax planning engagement. The valuation methodology — typically enterprise value based on earnings multiple or net asset value — must withstand scrutiny from both the Agenzia delle Entrate and, indirectly, the AEAT if a future disposal triggers a review of the cost basis.
The 1977 Italy-Spain DTT: key clauses for this profile
The Double Taxation Treaty between Italy and Spain, signed in Rome on 8 September 1977 and published in the Spanish BOE on 22 December 1977 (BOE 22/12/1977), is the treaty framework governing this entire structure. It predates the OECD Model Convention revisions of the 1990s and 2000s, but its operative provisions remain in force and are applied regularly by both tax administrations.
For methodological context on bilateral DTT analysis as applied to expatriate structures, we refer to our Germany-Spain DTT guide, which explains the treaty analysis framework in detail. The Italy-Spain DTT follows the same general architecture — income classification, source/residence allocation, and double taxation relief — but has its own specific parameters.
Dividends (art. 10): Dividends distributed by an Italian SRL to a Spanish-resident individual shareholder may be taxed in Italy, but the Italian withholding (ritenuta) is capped at 15% in general, reduced to 5% where the recipient company holds at least 25% of the Italian distributing company. For an individual receiving dividends directly, the applicable cap is 15%. In Spain, the dividends are included in the savings tax base (base imponible del ahorro) and taxed at 19–28% depending on the amount. The Italian withholding is credited against the Spanish IRPF (or IRNR if the individual is under the Beckham regime) liability on the same income, under the credit method of art. 22 of the treaty.
Capital gains on share disposals (art. 13): Gains from the disposal of shares in an Italian company by a Spanish tax resident are, in the general case, taxable exclusively in the state of residence — Spain. Italy retains taxing rights only in specific cases involving companies whose assets consist principally of real estate situated in Italy. For the typical operating SRL in IT or professional services, this means that a future disposal by a Spanish-resident shareholder is taxed in Spain, not in Italy (beyond the exit tax treatment already addressed under art. 166 TUIR at the time of departure).
Self-employment income (art. 14): Income derived from professional services or other activities of an independent character is taxed in the state of residence, unless the individual maintains a fixed base (base fissa) in the source state. A Spanish-resident freelancer who serves Italian clients remotely, without maintaining a dedicated office or material installation in Italy, is taxable on those fees exclusively in Spain. This provision is fundamental: it means that post-relocation Italian consulting revenue — billed by the individual, not by the Italian SRL — is outside Italian tax jurisdiction, subject to the fixed-base caveat.
Elimination of double taxation (art. 22): Both Spain and Italy use the credit method under this treaty. Spain credits Italian taxes against the Spanish IRPF or IRNR liability on the same income. This prevents effective double taxation on dividend flows, though the credit is capped at the proportionate Spanish tax on the same income — excess foreign tax credits are not refundable.
Residency determination: The treaty follows the standard OECD tie-breaker sequence — permanent home, centre of vital interests, habitual abode, nationality — for cases of dual residency. For an Italian who formally registers in Spain, cancels Italian residency (iscrizione AIRE — Anagrafe degli Italiani Residenti all’Estero — is the correct mechanism for maintaining civil status while confirming fiscal non-residency), and relocates habitually, the residency determination is clear. The centre of vital interests test is satisfied by Spain once family, bank accounts, and primary professional activity have genuinely migrated.
Landing in Spain: Beckham regime applied to the ex-freelancer profile
The Spanish Beckham regime, formally the régimen especial de trabajadores desplazados a territorio español under art. 93 LIRPF, provides the most significant single tax advantage available to qualifying inbound talent: a flat 24% rate on Spanish-sourced income up to €600,000, with a 47% rate on the excess, for the year of arrival and the following five years. Foreign-source income falls outside IRPF and is assessed under IRNR — critically, dividends from the Italian SRL to a Beckham-regime taxpayer are not aggregated into the Spanish general tax base.
However, the regime does not apply to a freelancer arriving in Spain and continuing to operate independently. Article 93 LIRPF requires one of two triggers: (a) relocation to Spain under an employment contract, whether with a Spanish employer or a foreign employer posting the individual to Spain; or (b) acquisition of the role of administrator (administrador) of a Spanish company, provided the individual did not hold, directly or indirectly, a stake of 25% or more in that company — or in a group of companies — in the ten years preceding the application.
For the Italian freelancer profile, the path to the Beckham regime runs through the Spanish SL. The typical structure: incorporate a Spanish SL, take on the role of sole administrator with a documented remuneration agreement, confirm that the shareholding does not exceed 25% (structuring through a holding layer if necessary), and file Form 149 with the AEAT within six months of registering with the Spanish social security system. The Beckham law application process requires supporting documentation including the Italian tax residency history, the Spanish SL incorporation deed, and evidence of the administrator appointment.
Under Beckham, the individual’s remuneration from the Spanish SL is taxed at 24% up to €600,000. Dividends received from the Italian SRL — as foreign-source income — are assessed under IRNR rules at 19%, with the Italian withholding of up to 15% credited. If the Italian SRL is structured so that the Spanish SL is the dividend recipient rather than the individual, the treaty’s 5% reduced withholding (available to companies holding ≥25%) applies, and the Spanish SL is subject to Spanish IS (corporate income tax) on the dividend income rather than IRNR — a different calculation but potentially more efficient depending on the IS regime and the deductibility of participation exemption provisions under Spanish law.
For deeper analysis of how the Beckham regime interacts with entrepreneurial and freelancer profiles specifically, see our insight on the expanded Beckham regime for freelancers and entrepreneurs. The glossary entry on ley Beckham provides the foundational definitional framework.
A common point of confusion: the Beckham regime does not apply automatically to EU citizens. Italian nationals are EU citizens and benefit from freedom of establishment and movement, but the regime’s conditions under art. 93 LIRPF are specific and must be individually satisfied. BMC has processed applications from Italian professionals who assumed their EU status simplified the process — it does not. The legal structure and application must be prepared with precision.
Effective tax burden comparison: 4 scenarios
The following table compares the effective tax burden across four structural scenarios at three representative profit levels. All figures are 2026 estimates based on the regulatory framework described in this article. Individual circumstances will vary.
Stated assumptions:
- Compenso amministratore in scenarios B, C, D: set at €60,000 annually (optimised for IRPEF/INPS efficiency)
- Remaining profit retained in company or distributed as dividend in the same year
- Italy: IRES 24% + IRAP 3.9% effective combined = 27.9% on company profit
- Spain Beckham: 24% on Spanish SL remuneration; IRNR 19% on Italian SRL dividends received by individual; Italian treaty withholding 15% credited
- INPS (Scenario A): Gestione Artigiani at 24% with minimum fixed component €4,460
- No deductions modelled at individual level for simplicity
| Scenario A: Forfettario | Scenario B: Italian SRL only | Scenario C: Italian SRL + Holding (PEX) | Scenario D: Italian SRL + Spanish Beckham | |
|---|---|---|---|---|
| €100,000 profit | ||||
| IRES + IRAP on company profit | — | €27,900 | €27,900 | €27,900 |
| IRPEF / Beckham on remuneration | €15,000 (15% flat) | €11,500 (on €60k compenso) | €11,500 | €14,400 (24% Beckham on €60k) |
| Dividend withholding | — | €10,400 (26% art. 27) | — (PEX eliminates at holding level) | €3,040 (IRNR 19% net of 15% credit) |
| INPS contributions | ~€16,000 | ~€4,800 (min + reduced base) | ~€4,800 | ~€4,000 (Spanish RETA or general) |
| Total effective burden | ~€31,000 (~31%) | ~€54,600 (~55%) | ~€44,200 (~44%) | ~€49,340 (~49%) |
| Net to owner | ~€69,000 | ~€45,400 | ~€55,800 | ~€50,660 |
| €250,000 profit | ||||
| IRES + IRAP on company profit | — | €69,750 | €69,750 | €69,750 |
| IRPEF / Beckham on remuneration | €68,750 (43% marginal) | €11,500 | €11,500 | €14,400 |
| Dividend withholding | — | €49,400 (26%) | — (PEX) | €18,050 (IRNR 19% net) |
| INPS contributions | ~€38,000 | ~€4,800 | ~€4,800 | ~€4,000 |
| Total effective burden | ~€106,750 (~43%) | ~€135,450 (~54%) | ~€86,050 (~34%) | ~€106,200 (~42%) |
| Net to owner | ~€143,250 | ~€114,550 | ~€163,950 | ~€143,800 |
| €500,000 profit | ||||
| IRES + IRAP on company profit | — | €139,500 | €139,500 | €139,500 |
| IRPEF / Beckham on remuneration | €193,750 (43% marginal) | €11,500 | €11,500 | €14,400 |
| Dividend withholding | — | €114,400 (26%) | — (PEX) | €48,450 (IRNR 19% net) |
| INPS contributions | ~€68,000 | ~€4,800 | ~€4,800 | ~€4,000 |
| Total effective burden | ~€261,750 (~52%) | ~€270,200 (~54%) | ~€155,800 (~31%) | ~€206,350 (~41%) |
| Net to owner | ~€238,250 | ~€229,800 | ~€344,200 | ~€293,650 |
The table reveals several non-obvious findings. The Italian SRL alone (Scenario B) is not uniformly superior to the forfettario — at lower income levels, the mandatory distribution of profit as dividends makes the combined IRES+IRAP+dividend withholding burden comparable to or worse than the forfettario flat rate. Scenario B becomes efficient only when significant profit is retained within the SRL over multiple years without distribution. The Italian SRL with holding and PEX (Scenario C) produces the most compelling outcome at high income levels — 31% effective burden at €500,000 — but requires multi-year holding period compliance and professional structuring. The Spanish Beckham scenario (Scenario D) offers a materially better outcome than Scenario B at all income levels, primarily because IRNR taxation of Italian dividends at 19% (net of treaty credit) is significantly lower than the 26% definitive Italian withholding on direct distributions.
How we start: technical analysis from €2,500 + VAT
This article has outlined the analytical framework. Translating it into a personalised structure requires a detailed technical analysis that covers: Italian exit tax valuation, SRL cap table review, DTT residency determination, Beckham regime eligibility confirmation, Spanish SL structuring, and social security coordination.
BMC’s Italian freelancer tax structuring service covers the full sequence, from the initial diagnostic through to the finalisation of the Spanish SL and the Beckham regime application. The engagement begins with a technical analysis at €2,500 + VAT, which produces a written report, a personalised tax burden comparison across your specific scenarios, and a phased implementation roadmap. For profiles above €200,000 in annual billings, we recommend scheduling this analysis six to twelve months before any planned relocation, given the lead times for Italian SRL incorporation, art. 166 TUIR valuation, and Spanish SL registration.
