Italian taxpayers facing unresolved tax debts may soon have a new option for relief with the upcoming “rottamazione quinquies” plan launching in January 2026. This is the fifth iteration of italy’s debt restructuring program, offering a path to settle outstanding liabilities accrued through 2023 with reduced penalties and accessible installment plans [[1]]. The initiative comes as the Italian government navigates high public debt-currently at 138.2% of GDP-and seeks to improve fiscal stability [[1]], while the IMF urges continued efforts to reduce the country’s over three trillion euro debt [[3]].
Italian taxpayers may have a final opportunity to settle outstanding debts through a new debt restructuring plan launching in January 2026. The initiative, dubbed “rottamazione quinquies,” offers a potential pathway to compliance for those with debts accrued by a specific date, providing both debt reduction and manageable installment payments.
This latest restructuring notably features payment schedules more closely aligned with standard installment plans, while still retaining the benefits typically associated with debt forgiveness programs. The plan essentially offers similar amortization periods to those available through regular installment arrangements for tax debts. The extent of the benefit, however, will vary depending on the taxpayer and the amount owed.
Details of the “Rottamazione Quinquies” Plan
The “rottamazione quinquies” allows for repayment over 54 bi-monthly installments. The first payment is expected to be due in July 2026, with applications accepted between January 16th and April 30th. Successful applicants will be required to make their initial payment by July 31st, 2026, with subsequent payments due every two months. This initiative arrives as Italian authorities continue to seek ways to address outstanding tax liabilities.
To participate in the “rottamazione quinquies,” taxpayers must submit an application. Upon approval, the plan will result in a reduction of the outstanding debt. Specifically, penalties, late payment interest, and collection fees – often referred to as “aggi” – will be waived for debts incurred between January 1, 2010, and December 31, 2023. You can find more details on eligible debts here.
Who Benefits Most from the Debt Relief?
The debt reduction is particularly advantageous for taxpayers with older outstanding debts, where penalties and interest have significantly increased the total amount due. Based on previous debt relief programs, these individuals could potentially save 30% or more. Furthermore, those with substantial debt stand to benefit from the extended repayment period. The longer payment plan is available to taxpayers whose installment amounts meet a minimum threshold.
The minimum bi-monthly installment is set at 100 euros, mirroring the requirements of standard tax debt installment plans. This stipulation effectively excludes those who would qualify for lower monthly payments of 50 euros or less.
Illustrative Examples of Potential Savings
Consider a taxpayer with 40,000 euros in eligible tax debt. If the “rottamazione quinquies” reduces the debt by 30%, the outstanding balance would fall to 28,000 euros. Taxpayers with debts inflated by penalties, interest, and collection fees are likely to see the most substantial savings.
For example, a taxpayer facing this reduced 28,000 euro debt could potentially spread payments over the full nine-year period with bi-monthly installments of approximately 520 euros (including 4% interest on installments after the first). However, the benefits of the restructuring, and therefore the ability to access this extended payment plan, are primarily available to those with debts up to 5,400 euros net of the restructuring advantages.
