Translated automatically by AI from the Italian original.
The €26 billion economic package focuses on tax cuts, family support, job incentives and investment. The Council of Ministers has approved the 2027 budget bill, which now goes to Parliament for examination.
Announced measures include extending the 33% IRPEF band up to €55,000, a savings fund for children born from 2027, incentives for hiring young people and mothers, tax relief on rental income and confirmation of tax deductions for home improvements.
Not all interventions, however, will translate into immediate benefits. Amounts, requirements and start dates will need to be verified in the final text of the law.
IRPEF at 33% up to €55,000: maximum saving of €500
The main tax change concerns the expansion of the 33% IRPEF band, which should apply up to €55,000 of taxable income, compared with the current limit of €50,000.
The maximum saving indicated is €500 a year. About €1.2 billion has been earmarked to fund the measure. Extending the benefit up to €60,000 would have required greater resources, estimated at €2.7 billion.
The advantage varies according to income. For example, on taxable income of €53,000, applying the ten‑percentage‑point reduction only to the portion between €50,000 and €53,000 would yield a gross saving of €300.
The reduction therefore does not apply to the entire income, but only to the part affected by the change in the rate.
Flat‑rate regime: threshold at €100,000
For the self‑employed, the government has also announced an increase from €85,000 to €100,000 in the revenue or fee threshold for access to the flat‑rate regime.
The issue of VAT exemption remains separate, as this requires European authorisation. The version presented by the government does not include, however, the intervention on the 13th‑month payments discussed in earlier previews.
2027 birth bonus: a fund for children up to age 18
Among the measures dedicated to birth rates is a savings fund for children born from 2027, to be opened with the national social security institute (INPS).
The announced initial public contribution is €100, with the possibility for family members to make additional payments to increase the capital.
The aim is to build up assets that can be used when the child turns 18, particularly to cover education or supplementary pension costs.
The fund should not be confused with a bonus for the family’s day‑to‑day expenses: it is a form of savings aimed at the child’s future. The continuity of any further public contributions in subsequent years and the operational arrangements will need to be clarified in the final text.
Parental leave: more months at 80% pay
The family package also includes strengthening paid parental leave at 80%.
According to the announced measures, the aim is for one additional month, bringing the total to four months, rising to five for the second child and six from the third.
To understand the actual scope of the intervention, it will be necessary to check the access requirements, the beneficiaries and the start dates provided for in the law.
Hiring incentives: deductions up to 180% for mothers
The budget provides new tax relief for companies that hire staff, with particular attention to young people and working mothers.
Deputy Economy Minister Maurizio Leo has announced an increase in the deduction for the cost of new hires, with rates indicated at 140% for young people and 180% for working mothers.
This is not a direct reimbursement of wages: the relief applies to the fiscally deductible cost for the company. The actual benefit will depend on the conditions laid down and the company’s tax position.
Bonus of up to €2,500 for the under‑30s
Among the measures presented is also a bonus of up to €2,500 for workers under 30, with taxation indicated at 1%. The payment could be made in a single instalment or through 12 monthly payments.
The package also includes a tax credit for software and about €2.4 billion earmarked for the single special economic zone in the Mezzogiorno.
The relief for businesses, hiring incentives and bonuses for workers are different tools and do not constitute benefits that are automatically cumulative for every new hire.
Rentals: flat tax at 5% for agreed rent
On the property front, the government is announcing a reduction in the flat tax on agreed‑rent leases from 10% to 5%.
A 1% rate is also indicated for specific lettings to young people under 35, while a 21% flat tax is proposed for commercial properties.
To assess the actual saving, it will be necessary to know which contracts are eligible and what conditions are required. Moreover, a reduction in taxation for the landlord does not automatically mean a reduction in the rent paid by the tenant.
2027 renovation bonus: are the deductions confirmed?
Among the announced interventions is the confirmation of deductions for building work: 50% for main homes and 36% for other properties, plus a furniture bonus with a spending limit of €5,000.
The aim is to avoid the reduction in rates planned for 2027.
For those intending to renovate their home, it will be important to check the final version of the law, the conditions for benefiting from the deductions and their own tax capacity. The benefit, in fact, does not equate to an immediate reimbursement of the expense incurred.
Healthcare: €3.4 billion extra and €300 vouchers for the over‑75s
For the national health service, an increase of €3.4 billion compared with 2026 has been indicated, including €1 billion already allocated.
This figure should be read by distinguishing between additional resources and sums already provided for previously.
Among the announced interventions is also a €300 voucher for people over 75 with pension incomes up to €28,000, to be used for healthcare expenses not reimbursed by the public service.
The measure will need to clarify which services will be eligible, how to apply for the contribution and what requirements beneficiaries will have to meet.
Pensions: €850 million for flexible retirement
On the pensions front, the government is providing €850 million for flexible retirement.
The measure responds to requests from the Lega, but it does not yet amount to the introduction of a generalised right to retire at 64.
Minimum age, contribution history, any economic thresholds and the pool of beneficiaries will need to be defined through the operational provisions.
Schools and energy: works from 2027
The budget also includes investments for the energy efficiency of public buildings, with works concerning schools, heat pumps and plants.
For school air conditioning, the announced schedule envisages calls for tenders in 2027 and funding from 2028. These are therefore not works set to start immediately in all schools.
The programme also includes investments for universities, hospitals, sports facilities and sustainable rail mobility.
