Italy’s 2026 budget introduces a new three-year tax credit for businesses in SEZs, extends plastic, sugar, and tourist tax exemptions until 2026, allocates EUR 100 million for SLZs, and refinances the Nuova Sabatini incentive.
Italy’s Ministry of Finance has presented the draft Budget Plan for 2026-2028 to the Council of Ministers on 14 October 2025. Key changes include the introduction of a new SEZ tax credit and support for SLZs; extension of plastic and sugar tax exemptions; refinancing of the Nuova Sabatini incentive; extension of tourist tax measures; and reduction of the second personal income tax rate.
The Ministry also previewed the main contents of the draft budget law for the three-year period 2026-2028, which will be on the agenda of an upcoming Council of Ministers meeting.
Tax credit for businesses in SEZs
A new tax credit has been introduced for businesses operating in special economic zones (SEZs) for a three-year period, along with EUR 100 million allocated to support simplified logistics zones (SLZs) from 2026 to 2028.
Plastic and sugar tax exemptions
The plastic and sugar tax exemptions have been extended until 31 December 2026.
Nuova Sabatini tax incentive
The Capital Goods measure (Nuova Sabatini) tax incentive measure is also being refinanced. The Nuova Sabatini is a tax incentive program established by the Ministry of Business and Made in Italy to improve businesses’ access to credit and strengthen the competitiveness of the national production system. The incentive supports investments to purchase or lease machinery, equipment, systems, capital goods for production use, and hardware, as well as software and digital technologies.
Tourist tax extension
The tourist tax measures have been extended until 2026.
Personal income tax rate reduction
The second IRPEF (personal income tax) rate will be reduced from the current 35% to 33%.
