INPS 35% Contribution Reduction for Forfettario Taxpayers: How to Apply and What You Give Up
Artisans and traders on the forfettario flat-rate regime can cut their INPS social-security contributions by 35%. Here's how to claim it and what it costs you in future pension.
In a nutshell
If you hold a Partita IVA (Italian VAT number — required to invoice as a self-employed worker) under the forfettario flat-rate regime and you're registered with the INPS (Italy's social-security agency — pensions, unemployment, family benefits) Artisans and Traders fund, you can apply for a 35% reduction on all your social-security contributions. The fixed annual minimum drops from roughly €4,500 to about €2,900, saving you over €1,500 a year. The reduction is not automatic — you have to request it by 28 February — and it comes at the cost of a lower future pension.
At a glance
| Cost | Free (no charge to apply) |
| Deadline | Application by 28 February of the year you want it to apply |
| Where | INPS portal with SPID/CIE/CNS · or free Patronato (free union-run office helping with social-security paperwork) |
| Annual saving | ~€1,550 for artisans · ~€1,580 for traders |
Who qualifies and who doesn't
The reduction is only available to people who are simultaneously on the forfettario regime (Legge 190/2014) and registered with the INPS IVS Artisans and Traders fund.
You cannot apply if:
- you're registered with the INPS Gestione Separata (typically freelance professionals with a service-sector ATECO code: consultants, web designers, graphic designers, etc.)
- you're registered with a private professional fund (lawyers, engineers, doctors, accountants)
- you operate under the ordinary or simplified accounting regime rather than the forfettario
- you're a partner in an Srl or a partnership (società di persone)
What you pay with and without the reduction (indicative 2026 figures)
Without the reduction
| Item | Artisans | Traders |
|---|---|---|
| IVS contribution rate | ~24.00% | ~24.48% |
| Fixed annual minimum | ~€4,430 | ~€4,515 |
| Notional minimum income | ~€18,415 | ~€18,415 |
With the 35% reduction
| Item | Artisans | Traders |
|---|---|---|
| Effective IVS rate | ~15.60% | ~15.91% |
| Reduced fixed minimum | ~€2,880 | ~€2,935 |
| Annual saving on the minimum | ~€1,550 | ~€1,580 |
The reduction applies to both the fixed minimum and the contributions on the portion of income above that minimum. It does not apply to the maternity contribution (around €7.44 per year) or, for traders, to the activity-cessation indemnity rate.
Worked example: a trader on the forfettario in Rome
Maria opens an e-commerce business (ATECO code 47.91.10) as a sole trader on the forfettario. Her 2026 income: €30,000.
Without the reduction:
- Fixed minimum: ~€4,515
- Excess income: 30,000 − 18,415 = 11,585 × 24.48% = ~€2,836
- Total per year: ~€7,350
With the 35% reduction:
- Reduced fixed minimum: ~€2,935
- Reduced excess: 11,585 × 15.91% = ~€1,843
- Total per year: ~€4,780
- Saving: ~€2,570/year
How to apply
The application is online only, through the INPS portal using SPID (Italy's digital identity for accessing online public services), CIE (Italian electronic ID card), or CNS:
- Go to inps.it and log in to your personal area (MyINPS).
- Search for the service "Regime contributivo agevolato per i contribuenti soggetti al regime forfetario".
- Fill in the declaration: confirm you are on the forfettario regime and want to join the scheme.
- Submit.
Alternatively, go to a Patronato (ACLI, INCA, ITAL, INAS) — the service is free.
Once you apply, INPS updates your contribution plan. In the following months you receive F24 (the universal Italian payment form for taxes and contributions) forms already reduced by 35%. The four annual payment deadlines stay the same: 16 May, 20 August, 16 November, 16 February.
Key deadlines
| Situation | Deadline |
|---|---|
| New activity (opening a forfettario Partita IVA) | By the activity-start notification to INPS |
| First application for an ongoing activity | By 28 February of the year of application |
| Switching from the ordinary regime to the forfettario | By 28 February of the year you start using the forfettario |
Miss the 28 February deadline and you cannot apply retroactively — you have to wait until the following year.
The pension impact: what you need to know
Paying 35% less in contributions does not reduce the number of credited years (your pensionable seniority stays intact, as confirmed by Circolare INPS 35/2016), but it does reduce your pension pot — the virtual account from which your future pension amount is calculated.
On €30,000 of annual income, the difference in pot size between a year with and without the reduction is around €2,570. Over 30 years of work, that translates into an estimated monthly pension shortfall of between €350 and €450 compared with someone who paid full contributions (assuming the same income and current conversion coefficients).
When the reduction makes sense
- You're young and have time to build a bigger pot later.
- You already have contributions built up elsewhere (from employment or another fund).
- You reinvest the saving in a supplementary pension fund (fondo pensione complementare).
- You're already retired and the Partita IVA is a secondary activity.
When it doesn't make sense
- The forfettario is your only source of contributions and you have nothing else.
- You're close to retirement age and every euro in the pot counts.
- You want to access pension routes that require a large pot (such as Opzione Donna or Quota 41).
When the benefit lapses
The reduction is cancelled automatically if:
- you leave the forfettario regime (for example because your revenue exceeds €85,000)
- you close your Partita IVA or cease your activity
- you change INPS fund (switching from artisan to trader, or moving to the Gestione Separata)
- you voluntarily notify INPS that you are withdrawing
From the year after the lapse you go back to paying full contributions. If you re-enter the forfettario after leaving it, you must apply again — the benefit does not reactivate automatically, and the 28 February deadline applies again.
Mistakes to avoid
- Assuming it applies to all professionals. Freelancers registered with the Gestione Separata (consultants, web designers, graphic designers) are not entitled to any reduction. The scheme is exclusively for artisans and traders in the IVS fund.
- Confusing the reduction with the 5-year deadline. The 35% contribution reduction does not expire after five years — it stays in force for as long as you are on the forfettario. What expires after five years is the reduced 5% IRPEF (Italian personal income tax) rate, which is a tax matter, not a contribution matter.
- Paying someone to file the application. The whole thing takes a few minutes on the INPS website. You should not pay anyone for this. Be suspicious of anyone who charges you for this service.
Official sources
- INPS — Forfettario reduced contribution scheme
- INPS — Reduced contribution scheme in-depth
- Circolare INPS 35/2016
- INPS — Artisans and Traders fund
- Agenzia delle Entrate (Italy's tax-revenue agency) — Forfettario regime
Legal references: Legge 190/2014 art. 1 commi 77-84, Legge 145/2018 art. 1 commi 9-11, Legge 197/2022, Circolare INPS 35/2016, Circolare INPS 22/2015.