On 30 December 2025, the Italian Parliament gave final approval to the 2026 Budget Law, which was published in the Official Gazette as Law No. 199 of 30 December 2025. The law entered into force on 1 January 2026 and introduces significant changes affecting insurers writing motor and vessel business in Italy.
The Budget Law increases the Insurance Premium Tax rate applicable to policies covering driver injury risk and road assistance risk from 2.5% to 12.5%. Notably, the final legislation departs from the original proposal, which envisaged retrospective application of the higher rate for a period of ten years. The increased rate applies to contracts entered into or renewed from 1 January 2026 and is applicable regardless of whether the premium for these coverages is stated separately from the compulsory motor third-party liability policy. By way of transitional arrangement, the tax due on premiums collected in the first five months of 2026 shall be paid by 30 June 2026.
The Budget Law also amends Article 334 of the Private Insurance Code (Legislative Decree No. 209/2005), introducing a new advance payment obligation for the contribution on vehicle and vessel insurance premiums, commonly referred to as the EMER or SSN contribution (10.5%). Under the revised provisions, insurers must pay, by 16 November of each year, an advance equal to 85 per cent of the contribution due for the preceding year. For liquidity purposes, this advance may be offset, starting from February of the following year, against payments due under the same provision. This new provision first applies in November 2026.
