Tax Democracy

ATECO Codes — Crop and animal production, hunting and related service activities

Division 01 covers farming proper: cultivation of cereals, rice, vegetables, vines and fruit, animal husbandry, hunting and related services such as harvesting or processing on behalf of third parties. From a tax perspective these activities follow their own rules, different from those of an ordinary self-employed worker. A farming entrepreneur who stays within the limits of Art. 2135 of the Civil Code is taxed on cadastral agricultural income and applies the special agricultural VAT scheme, not the flat-rate regime.

ATECO 2025 codes
46
Flat-rate eligible
46 of 46
Profitability coefficient
67%
Prevalent INPS scheme
Gestione Separata

Frequently asked questions

Can a farmer open a VAT number under the flat-rate regime?
Generally no, if the activity falls within cultivation, animal husbandry and the sale of one's own produce under Art. 2135 of the Civil Code: in that case the income is agricultural income taxed on a cadastral basis and VAT follows the special agricultural scheme — two regimes that the flat-rate regime does not replace. The flat-rate regime becomes viable when the activity goes beyond the limits of agricultural income and generates business income, for example services to third parties or processing beyond the prevalence threshold. Anyone in the exemption regime (turnover below €7,000) may still open a flat-rate VAT number for a different activity.
How is agricultural income taxed for a self-cultivating farmer?
A self-cultivating farmer does not pay taxes on turnover but on the agricultural and dominical income of the land, calculated on revalued cadastral values (80% for dominical income, 70% for agricultural income). For 2024 and 2025, self-cultivating farmers and professional agricultural entrepreneurs pay no personal income tax on up to €10,000 of dominical and agricultural income; the portion between €10,000 and €15,000 contributes 50%, and the excess in full. For activities that instead generate business income under the flat-rate regime you can calculate the taxes.
What INPS contributions does someone starting an agricultural business pay?
Self-cultivating farmers and professional agricultural entrepreneurs register with the INPS Agricultural Management scheme, with contributions calculated on a notional agricultural income rather than actual revenue. The amount is largely fixed, averaging between €3,000 and €3,500 per year, paid in quarterly instalments. Anyone starting an agricultural start-up can obtain a 35% reduction on contributions, rising to 50% in cases covered by youth incentive provisions.