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 an annual threshold. The 2026 threshold should be confirmed against the latest Legge di Bilancio.

Author
gift.cards Editorial
Editorial team, gift.cards
Reviewed by
External counsel — review pending
Last reviewed
24 June 2026
Fringe benefit threshold (art. 51 c.3 TUIR)
Verify for the current year — Some figures shown reflect a previous year. Confirm the latest threshold with the official source linked below before relying on it for payroll.

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

  • Default ordinary threshold under art. 51 c.3 TUIR: €258.23 per employee per year in aggregate non-cash benefits. Going one euro above this threshold makes the entire amount taxable as employment income, not just the excess (cliff rule).
  • Italy has repeatedly raised this threshold through annual budget laws (Legge di Bilancio): for example €3,000 in 2022, €3,000 for employees with dependent children in 2023, and €1,000 / €2,000 (with dependent children) for 2024–2025.
  • The threshold for 2026 has not been hardcoded here because it is set by the Legge di Bilancio. Confirm the current figure with Agenzia delle Entrate or a tax advisor before relying on it for payroll.
  • Eligible items include shopping vouchers, 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.

Conditions to qualify

  • ✓Non-cash benefit (does not include direct cash payments).
  • ✓Aggregate annual value to the employee at or below the current art. 51 c.3 threshold.
  • ✓Granted in addition to ordinary salary, not via salary sacrifice converting cash into vouchers.
  • ✓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.

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Is this tax-free?

Estimated treatment
Partially tax-free

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

  • •The annual cap is set each year by the Legge di Bilancio (ordinary baseline €258.23). Confirm the current figure with Agenzia delle Entrate before relying on it.
  • •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.

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Primary sources

Frequently asked

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

What is the 2026 fringe benefit threshold in Italy?

The threshold is set each year by the Legge di Bilancio. The ordinary baseline in art. 51 c.3 TUIR is €258.23, but recent budget laws have temporarily raised it. Confirm the current value with Agenzia delle Entrate before relying on it.

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 up to).

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.

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