Legal practice activities (law firms)

ATECO code 69.10.10 covers the activities of law firms — the legal advice and assistance provided by lawyers: representation in civil, criminal and administrative proceedings, drafting opinions and contracts, negotiation and conciliation, alongside the work of notaries and other legal professionals. It sits in division 69 (legal and accounting activities) of section M, dedicated to professional, scientific and technical activities.

A practising lawyer normally opens a VAT number (partita IVA) as a self-employed professional and can choose between two tax regimes. The flat-rate scheme (forfettario) is available up to €85,000 of annual revenue: for professionals a profitability coefficient of 78% applies, so the substitute tax (5% for the first five years if the requirements are met, otherwise 15%) is charged on 78% of the fees collected. It is a simple regime, but with no analytical deduction of costs and no VAT recovery.

The alternative is the ordinary (standard) scheme, where income is the difference between fees and expenses actually incurred (office, staff, software, training), subject to progressive income tax (IRPEF), regional and municipal surtaxes and standard VAT. It often becomes worthwhile when office costs are high or when the flat-rate thresholds are exceeded. You can compare the two scenarios with the flat-rate scheme tax calculator and the ordinary scheme tax calculator.

On the social-security side, lawyers do not pay INPS but contribute to Cassa Forense, the profession's mandatory pension fund, to which enrolment is due on joining the bar. The main contributions are the contributo soggettivo (a percentage of net professional income, with an annual minimum due even with no income) and the contributo integrativo, a percentage of the VAT turnover charged to the client on the invoice and then paid over to the fund. A maternity contribution is added on top.

The choice of regime therefore affects not only the taxes but also the amount of the soggettivo contributions and the firm's cash-flow planning. Before deciding, it is worth simulating the overall tax and contribution burden with our calculators and, in unclear cases, consulting an accountant (commercialista).