New Tax Relief Program Allows Citizens to Settle Debts Without Penalties

A new tax relief measure known as the quinquies settlement program is offering residents an opportunity to regularize unpaid municipal taxes, vehicle registration fees, and traffic fines by waiving associated penalties and interest. The initiative, established under the 2026 budget law, provides local authorities with the option to help citizens settle long-standing financial obligations while improving collection rates for public entities.

For nationwide debts entrusted to the national tax collection agency between January 1, 2000, and December 31, 2023, the application deadline is set for December 15, 2026. This broader territorial measure is not automatic and applies exclusively to roughly 1,500 local authorities that have chosen to participate. Residents can verify whether their municipality or region is included by consulting the official portal of the national tax collection agency.

Eligible liabilities typically cover unpaid property and waste taxes, vehicle taxes, and traffic fines. However, rules vary slightly at the local level. For instance, the municipality of Nardò has instituted its own localized settlement scheme for executive assessments notified between 2021 and 2025, offering residents until the end of December to clear local property and waste taxes alongside administrative penalties through up to 36 installments.

Under the national framework managed by the tax collection agency, participants pay only the residual principal amount and collection costs, while notification and enforcement expenses remain due. In the case of traffic fines, the original penalty must still be paid, but motorists receive relief from accumulated interest and surcharges. Excluded from all versions of the program are debts stemming from rulings by the Court of Audit.

Applications for the national program must be submitted exclusively online through the tax collection agency's website. Individuals utilizing digital credentials such as SPID or an electronic identity card can access a restricted area to view their eligible debts directly and select which ones to include. A public area without authentication is also available for those who provide folder reference numbers and attach an identification document.

Following application submissions, the tax collection agency will notify applicants of the exact amount due by February 28, 2027. Taxpayers can then choose to settle the total amount in a single payment by March 31, 2027, or opt for a payment plan consisting of up to 54 bimonthly installments, with each payment set at a minimum of 100 euros. Officials emphasize that failure to pay, missing a single installment, skipping two non-consecutive payments, or defaulting on the final installment will result in a total loss of the benefits.

Municipal officials have praised the initiative as a dual benefit for both vulnerable households and public administration budgets. Sara D’Ostuni, municipal finance councilor, described the policy as a valuable opportunity for citizens to regularize their financial standing while allowing the local government to optimize the management of active receivables and clear older credits from its balance sheets.