In Italy, employers can give employees gifts and vouchers without triggering IRPEF income tax or social contributions, as long as the total value stays within the annual fringe benefit threshold set by law. That threshold has moved around more than most in recent years, temporarily raised well above its historic level during the 2023-2025 cost-of-living measures, so it is worth confirming the current figure before you plan a gifting budget. This article explains where the threshold stands for 2026 and shows 12 gift ideas that comfortably stay within it.
The 2026 fringe benefit threshold: €1,000 or €2,000
Under Art. 51 comma 3 of the TUIR (Testo Unico delle Imposte sui Redditi), goods and services an employer gives an employee, including gift vouchers (buoni regalo), are exempt from IRPEF and social contributions up to an annual ceiling. The base statutory floor, in a normal year with no special measures in place, is just €258.23.
For 2026, that floor does not apply. The Legge di Bilancio 2025 (Legge 207/2024, art. 1 commi 390-391) raised the threshold for fiscal years 2025 through 2027 to:
- €1,000/year for employees generally.
- €2,000/year for employees with dependent children, whether under 30, under 24 with income of €4,000 or less, or of any age if disabled.
This is a franchigia, a cliff-edge threshold rather than a partial exemption. If the total value of everything an employee receives during the year exceeds €1,000 (or €2,000) by even one cent, the entire amount becomes taxable as ordinary employment income, not just the excess.
The exemption only covers goods and services, and vouchers that cannot be converted into cash. Ordinary cash gifts are always fully taxable and get no benefit from this exemption at all, regardless of the amount. There is one specific exception for 2025-2027: the same €1,000/€2,000 threshold can also cover cash reimbursements of home utility bills, rent, and mortgage interest on an employee's primary residence, a targeted statutory carve-out rather than a general cash allowance.
12 gift ideas within the threshold
1. Hoodie – The Rex: the flagship piece
A heavyweight 280 gsm organic cotton hoodie employees actually wear, and one of the most popular gifting items in the catalogue.
- Material: 90% organic cotton, 10% polyester.
- Branding: embroidery, print, or patches.
- Order: MOQ 100 · from €40.09/unit.
2. Sports Socks: the safe favourite
Sunday's most-ordered item, a small, unexpected gift that always lands well.
- Material: 80% cotton, 17% polyamide, 3% elastane.
- Branding: knitted-in logo zones.
- Order: MOQ 100 · from €4.00/unit.
3. Recycled Steel Bottle: everyday hydration
Vacuum insulation in recycled stainless steel, a gift that gets used and seen every day.
- Material: recycled stainless steel.
- Branding: laser engraving or print.
- Order: MOQ 50 · from €11.00/unit.
View the Recycled Steel Bottle →
4. A5 Notebook: FSC-certified paper
An A5 hardcover with elastic closure and ribbon marker, practical with a traceable material story.
- Material: FSC-certified paper, PU cover.
- Branding: debossing or print on the cover.
- Order: MOQ 100 · from €4.58/unit.
5. Premium Tote Bag: the lightweight carry
A heavyweight cotton tote with a premium feel, everyday enough to actually get used.
- Material: 270gsm cotton.
- Branding: print or custom straps.
- Order: MOQ 100 · from €6.44/unit.
6. Knitted Scarf: the cosy extra
A high perceived-value item, ideal for a winter or year-end gift.
- Material: 80% viscose, 20% polyester.
- Branding: woven label.
- Order: MOQ 100 · from €7.66/unit.
7. Baseball Cap: the everyday accessory
An affordable, highly visible accessory that works all year round.
- Material: 100% cotton.
- Branding: embroidery.
- Order: MOQ 100 · from €8.34/unit.
8. Espresso Mug: for the morning coffee
A compact espresso-sized mug, a small everyday object that sits on the desk.
- Material: ceramic.
- Branding: print.
- Order: MOQ 108 · from €8.44/unit.
9. Bamboo Tea Bottle: the natural choice
A bamboo exterior over a durable stainless steel interior, a warmer alternative to an all-metal bottle.
- Material: stainless steel, bamboo.
- Branding: laser engraving or print.
- Order: MOQ 50 · from €18.70/unit.
10. RollTop Backpack: the everyday bag
A water-resistant backpack with a laptop compartment that quickly becomes someone's everyday bag, still within the fringe benefit threshold.
- Material: GRS-certified recycled PU, water-resistant.
- Branding: print or embroidery.
- Order: MOQ 25 · from €24.57/unit.
11. Noise-Cancelling Headphones: the premium pick
A higher-end gift that still fits comfortably under the threshold, and makes a real difference to a busy workday.
- Material: recycled ABS, ANC + ENC, foldable.
- Branding: digital print or doming.
- Order: MOQ 50 · from €24.46/unit.
12. Wireless Powerbank: useful everyday tech
A magnetic wireless powerbank in recycled ABS plastic, genuinely useful for any commute or business trip, and still comfortably under the threshold.
- Material: recycled ABS plastic.
- Branding: pad print or digital print.
- Order: MOQ 50 · from €18.39/unit.
What about client gifts?
The fringe benefit rules above only apply to employees. Gifts to clients and other business contacts (omaggi a clienti) follow a completely separate set of rules.
IRES deductibility. Client gifts are deductible as "spese di rappresentanza" (representation expenses) under Art. 108 comma 2 TUIR and DM 19.11.2008, but only up to a tiered percentage of your "ricavi della gestione caratteristica" (core business revenue):
- 1.5% of revenue up to €10 million.
- 0.6% of the portion of revenue between €10 million and €50 million.
- 0.4% of the portion of revenue above €50 million.
Any amount spent above these caps is permanently non-deductible; there is no carryforward to future years.
VAT (IVA). Under Art. 19-bis1 comma 1 lett. h) of DPR 633/1972, VAT on representation-type gifts is generally not deductible. The one exception is gifts with a unit value of €50 or less, where VAT is fully deductible. Above €50 per unit, VAT is not deductible at all.
Common mistakes
- Assuming the threshold is a fixed, permanent number. Italy's fringe benefit ceiling has changed almost every year recently, so always check the current year's Legge di Bilancio before budgeting a gifting programme, rather than assuming last year's figure still applies.
- Assuming cash gifts qualify. Only goods, services, and non-convertible vouchers benefit from the exemption, plus the narrow utility/rent/mortgage carve-out; ordinary cash gifts are always fully taxable.
- Forgetting the €50 VAT rule on client gifts. VAT is only deductible on client gifts priced at €50 or less per unit; above that, it is not recoverable at all.
Note: this article is a general explainer, not tax advice. Italy's fringe benefit threshold has changed multiple times in the last few years, moving between its base statutory floor and various temporarily raised levels, so always confirm the current-year figure and its exact conditions with your commercialista or accountant before relying on it.
Order gifts for your team
Every product above is fully customisable with your branding and available in business order quantities. Browse the full range in the Sunday catalogue to put together a gift that stays within the 2026 fringe benefit threshold.
