FISCO Introduces Regulatory Framework for Sex Workers with New ATECO Classification

April 10, 2025 – Rome, Italy

In a landmark decision that marks a significant shift in Italy’s approach to sex work, the Italian Revenue Agency (FISCO) has announced the implementation of a comprehensive regulatory framework for prostitution and escort services. The new measures, which include the assignment of an official ATECO code for tax classification purposes, aim to bring the industry into the formal economy after decades in legal limbo.

The ATECO code system (the Italian version of NACE – Statistical Classification of Economic Activities) is used by Italian authorities to categorize business activities for regulatory and taxation purposes. With this new classification, sex workers will now be able to register their activities legally, access social security benefits, and fulfill tax obligations like other professionals.

“This measure represents a pragmatic approach to a complex social reality,” said Marco Bianchi, Director of the Revenue Agency, during yesterday’s press conference. “By creating a formal classification for these services, we’re acknowledging the existence of a sector that employs thousands of people while ensuring they contribute to the tax system and receive appropriate protections.”

The new regulations establish sex work as a legitimate profession under Italian law, allowing practitioners to issue invoices, maintain official accounting records, and contribute to pension funds. According to government estimates, the underground sex work industry in Italy generates approximately €5 billion annually, most of which has historically gone untaxed.

The reform follows years of debate among lawmakers, civil society organizations, and sex worker advocacy groups. Supporters argue that regulation will improve health and safety standards in the industry, reduce exploitation, and provide sex workers with legal recourse and labor protections previously unavailable to them.

“Today represents a victory for human rights and dignity,” said Elena Rossi from the Italian Sex Workers Committee. “For too long, people in this industry have been forced to work in the shadows without basic rights or protections. This recognition allows us to work safely, pay taxes like other citizens, and escape the stigma of criminality.”

The new classification distinguishes between different categories of sex work, including in-person services and digital content creation, each with specific regulatory requirements. Workers must register with local authorities, undergo regular health screenings, and comply with zoning regulations that restrict activities to designated areas away from schools and places of worship.

Critics, however, have expressed concerns about the moral implications of the state effectively sanctioning prostitution. Conservative political parties and religious organizations have opposed the measure, arguing it normalizes exploitation and contradicts traditional values.

“This is not just about taxation; it’s about the message we’re sending as a society,” said Father Giovanni Moretti of the Italian Bishops’ Conference. “We cannot reduce human dignity to a commercial transaction with an ATECO code.”

Labor unions have taken a nuanced position, supporting the rights and protections the new system affords workers while expressing concern about potential exploitation. “We recognize the need for regulation, but we must ensure this doesn’t become a mechanism for legitimizing human trafficking or forced prostitution,” said trade union representative Lucia Ferrara.

The Revenue Agency has clarified that the new regulations apply only to adult, consensual sex work, emphasizing that existing criminal laws against trafficking, exploitation of minors, and forced prostitution remain firmly in place and will be enforced with increased vigilance.

Tax authorities estimate that bringing the industry into the formal economy could generate between €500 million and €1 billion in additional tax revenue annually. Sex workers will be subject to the same progressive income tax rates as other self-employed professionals, ranging from 23% to 43% depending on income levels.

Implementation of the new system will begin next month, with a six-month transition period during which sex workers can register without penalties for previous undeclared income. The government has announced plans to establish support services to help workers navigate the new regulatory requirements.

As Italy joins countries like Germany, the Netherlands, and New Zealand in regulating rather than criminalizing sex work, observers note that this approach represents a significant departure from traditional policies in Mediterranean countries with strong Catholic influences.

The impact of these reforms on public health, criminal activity associated with underground prostitution, and the wellbeing of sex workers themselves will be closely monitored by researchers and policymakers in the coming years.