Country guide

Tax-free employee gift cards in Italy

Under art. 51, comma 3 TUIR, non-cash benefits — including gift cards — given to employees are exempt from income tax and social security up to €1,000 per employee per year (€2,000 for employees with dependent children), in force for 2025–2027. The ordinary baseline outside this temporary regime is €258.23/year.

Author
Editorial team, gift.cards
Reviewed by
gift.cards Editorial Board
Internal legal & fiscal review
Last reviewed
24 June 2026
Fringe benefit threshold (art. 51 c.3 TUIR)
Next scheduled review
24 June 2027
Annual verification cycle
Verified against official sources — 24 June 2026Editorial standards & methodology →

This page is general information based on published rules and was last reviewed on the date shown. It is not tax advice — confirm with your accountant or tax counsel for your specific situation.

The rule in plain language

  • Temporary 2025–2027 threshold (Legge di Bilancio): €1,000 per employee per year in aggregate non-cash benefits, raised to €2,000 for employees with dependent children (figli a carico).
  • Ordinary baseline under art. 51 c.3 TUIR (outside the temporary regime): €258.23 per employee per year.
  • Cliff rule: going one euro above the applicable threshold makes the ENTIRE amount taxable as employment income — not just the excess.
  • Eligible items include shopping vouchers (buoni acquisto), fuel cards, reimbursements of household utility bills, and rent — all within the same aggregate cap.
  • The cap applies per employee per year; it cannot be split into separate occasion-based caps. Confirm the employee's family status (dependent children) before applying the €2,000 cap.

Conditions to qualify

  • Non-cash benefit (does not include direct cash payments).
  • Aggregate annual value to the employee at or below €1,000 (€2,000 with dependent children) for 2025–2027.
  • Granted in addition to ordinary salary, not via salary sacrifice converting cash into vouchers.
  • Family-status documentation (dependent children) collected before applying the €2,000 cap.
  • Documented per employee per year in payroll records.

Recognised occasions

  • Any (annual aggregate cap, not occasion-based)
  • Christmas / end-of-year
  • Recognition without performance link

Client gifts

Business gifts to clients are deductible under art. 108 TUIR as entertainment expenses (spese di rappresentanza) up to the limits set by the implementing decree (a percentage of revenue based on company size). Items with a unit cost up to €50 are fully deductible without entering the spese-di-rappresentanza cap.

Use the estimator below

Is this tax-free?

Estimated treatment
Likely tax-free

Likely within the art. 51 c.3 TUIR fringe-benefit threshold — exempt from IRPEF and social security.

  • The annual cap is €1,000 per employee (€2,000 with dependent children) for 2025–2027 under the Legge di Bilancio. Ordinary baseline €258.23.
  • The cap is annual aggregate per employee across all non-cash benefits, including utility-bill reimbursements where applicable.
  • This estimator gives general information based on published rules. It is not tax advice — confirm with your accountant for your specific situation.

Not tax advice — see the country page for the full rule and sources.

Read the country guide

Frequently asked

Fringe benefit threshold (art. 51 c.3 TUIR)

What is the 2026 fringe-benefit threshold in Italy?

€1,000 per employee per year (€2,000 for employees with dependent children), in force for the 2025–2027 three-year window under the Legge di Bilancio 2025. The ordinary baseline outside this temporary regime is €258.23/year.

What happens if I exceed the threshold?

The entire amount — not only the excess — becomes taxable employment income. Art. 51 c.3 TUIR is a cliff threshold, not an allowance.

How do I qualify for the €2,000 cap?

The employee must have at least one fiscally dependent child (figlio a carico) and must declare this in writing to the employer. Without the declaration, the lower €1,000 cap applies.

Are utility-bill reimbursements counted in the same threshold?

Yes. Recent budget laws have explicitly included reimbursements of electricity, gas, water and rent within the same aggregate fringe-benefit cap.

Country guide

Send compliant gift cards in this market

Your account manager handles compliance, personalisation and delivery in 180+ countries. One invoice, no platform fee.

Request a quote

Talk to a dedicated account manager about Italy

Every programme is set up with you personally. Share what you need and your account manager sends a quote, with one invoice for all countries.

Request a quote

This page is general guidance, not tax advice. Confirm your own situation with your accountant or tax adviser before you act on it.