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FAQ: Italian taxation for Expats

Posted on November 3rd, 2020

by Expats living in Rome


The answers to the main questions concerning Italian taxation system from expats point of view.

1. After I move my tax residence in Italy how will I be taxed?

After you will move your tax residence in Italy your taxation will be based on the world wide principle. This means that you will be taxed in Italy for the whole income that you will earn all around the world. In case your non-Italian income will taxed also in another country, you may have a tax credit according with the convention against double taxation. To be sure where your income will be concrete taxed you should consult a professional and explain your concrete situation.

2. Can I work in Italy without to move my tax residence there?

Of course you can! In this case for to know where your income will be taxed is important to know:

Which kind of job you will do in Italy;

Type of income that you get in Italy according with the Italian and international income classification;

How long you will work in Italy;

If the entity that pay your income has the tax residence in Italy, or has a permanent establishment in Italy;

The country where you have your tax residence to verify if exists a convention against double taxation with Italy.

With that information it will be possibile to verify where you have to pay the taxes for Italian income.

3. How I will be taxed if I work in Italy without to move my tax residence there?

Usually you will be taxed only for the income that you get in Italy. Anyway it is necessary to verify you personal situation (see the question number two for the information needed for to check your situation).

4. I own an apartment in Italy, but my tax residence is not in Italy. The apartment is not rented. Do I have to pay taxes on the apartment in Italy, even if I don’t get any income?

Of course you will pay taxes in Italy. The taxes due are Municipal taxed, and are calculated on the cadastral value.

5. I have an apartment in Italy, and it is rented. Do I have to present the tax declaration and pay taxes in Italy?

Yes in this case you will need to present the tax declaration in Italy and you will need to pay the municipal taxes and also the IRPEF taxes (personal taxes).

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6. I’m a student and I will work in Italy for an Internship. Do I have to pay taxes on my grant?

It depends. Generally also the internship income are taxed in Italy. The only cases that allow you not to pay taxes in Italy on you internship grant are:

In case the grant is not paid by an Italian resident;
 In case there is a specific exemption from the Italian tax rules, as is the case for the European Erasmus program.

7. In which cases the income from employment earned in Italy is not taxed there? In case I don’t have the Italian tax residence?

If you don’t have the Italian tax residence and you get income from employment in Italy, and in case the country where you have your tax residence has stipulated a convention against double taxation with Italy, you will be not taxed in Italy if occur the following circumstances:

(a) the recipient is present in Italy for a period or periods not exceeding 183 days in the considered fiscal year;

and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident in Italy;

and

(c) the remuneration is not paid by a permanent establishment or a fixed base which the employer has in Italy.

In this case you will be taxed only in the country where you have your tax residence.

 

Dott. Raffaele Marino
Tax Advisors and Chartered Accountant
CEO Studio di Consulenza Marino
marino@consulenzamarino.it
www.consulenzamarino.it


 



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