With an increasing number of foreigners attracted to living, working and retiring on its shores, the Italian government is progressively incentivizing relocation.

The introduction an Investor Visa Program as well as a more favourable tax regime for foreign residents means now may be a great time to make your move to Italy.

 With a network of top professionals across Italy, we are primed to help with your all your relocation needs.

Our presence in Italy is supported by the globalvisas.me global network – allowing us to understand the cultural norms and business practices in your country of origin as well as your chosen destination.

Frequently Asked Questions about paying tax in Italy

what is a commercialista?

A commercialista is a qualified accountant in Italy. Commercialista’s are equivalent to Certified Public Accountants or Chartered Accountants in other countries and are fully authorized to provide accounting and tax advice within Italy.

How much tax do i need to pay in italy?

This depends. Like other countries it is necessary to determine your tax liabilty based on a variety of factors. For example, are you self-employed, do you own a business, are you freelance — or are you retired and simply moving to Italy for the good life.

i heard that you need to pay a lot of taxes in italy — is this true?

Once again, this depends. It is true that Italy has a history of heavy-tax regimes for ITALIANS. However, it is making strides (i.e. the impatriate tax regime) to provide a much more attractive fiscal policy for NON-ITALIANS who are interested to move their tax-residency into Italy. On average, it is true that Italians pay roughly 30-40% income tax.

What is the italian impatriate tax regime?

The Italian Government has created specific tax-program that is aimed at foreign nationals who seek to become residents in italy.

do i need to pay taxes in italy?

If you are a resident in Italy for 183 days in a year, it is likely that you are exposed to the Italian tax-system. There are exceptions, and it is important to consult a qualified professional to determine your tax-liability in Italy.

Do U.S. citizens need to pay taxes in Italy?

 If you are a resident in Italy, you will be required to pay taxes in Italy. The United States also has a “global tax” regime that requires all U.S. Citizens to declare their world wide income, regardless of where they live.

It is important to note that the United States has a double-tax treaty with Italy, so it is important to seek advice from a qualified commercialista (i.e. accountant) to further understand your tax position.

Do EU-citizens need to pay taxes in italy?

This depends on whether you are considered a resident for tax-purposes. For example, if you have a permesso di soggiorno (i.e. residence permit) for italy, and you have been in Italy for over 183 days in a calendar year it is likely that you may have tax liabilities in Italy.

are there tax benefits to retire in italy?

Yes — through the impatriate tax-regime Italy has provided specific incentives for retirees and pensioners. This involves a flat 7% tax on overseas income.

WHO SHOULD CONSIDER THE FLAT-TAX OPTION?

The Flat-Tax Regime is targeted for High Net Worth Individuals (HNWI) and their family members.

WHAT IS REQUIRED TO QUALIFY FOR THE FLAT-TAX PROGRAM? 

To be eligible for the flat-tax program a taxpayer must: (1) become a resident of Italy; and (2) pay the annual flat-tax in Italy on foreign income.

 Most countries require you to pay tax where you are considered a fiscal resident. That said, there are many considerations and factors – we encourage you to coordinate a consultation with one of our professional tax-advisors today. 

DO I NEED TO PAY TAXES IN MY OWN COUNTRY?

Since taxpayers typically want to qualify their fiscal tax presence for Italy on income-earned throughout the year, there is a notable amount of legal work and strategic tax-planning that goes into a timely flat-tax application. Mainly: (a)   A pre-application must be submitted to the appropriate tax authorities (Interpello); and (b)  Residency must be established in Italy.

WHAT IS THE PROCESS TO QUALIFY AND APPLY FOR THE FLAT TAX?

(a)   A simply annual flat-tax of € 100,000 regardless of your foreign income and assets.

(b)  Taxpayers are not required to disclose their non-Italian assets and income.

(c)   Residency may also be obtained for all immediate and dependent family-members.

WHAT ARE THE MAIN BENEFITS OF THE FLAT-TAX PROGRAM?

Generally, an individual pays income taxes on the previous year’s income in the country where they have been a tax resident for more than 183 days. International tax-treaties maintain the “center of vital interests” test to determine this.

HOW DO I ESTABLISH TAX- RESIDENCY IN ITALY? 

The flat-tax regime for Italy is concentrated solely on the tax perspective. It does not provide an immigration or residency pathway for Italy.  Individuals who are considering this option, must consult an expert Italian immigration attorney to further understand what their options are to live and reside in Italy.

DOES THE FLAT-TAX PROGRAM GRANT ME A VISA FOR ITALY?

 EU Citizens can legally live in Italy for a period exceeding three months by taking formally establishing residency in Italy. In order to qualify for residency in Italy they must demonstrate: (a) Sufficient financial capacity; and (b) Proper healthcare coverage. NOTE: Due to Brexit UK Citizens are encouraged to consult our immigration lawyers for specific guidance regarding residency in Italy.

I AM AN EU CITIZEN — CAN I LIVE AND RESIDE IN ITALY?

Non-EU citizens must apply for a suitable visa to live in Italy for more than 183 days. Like many countries, the Italian Immigration system is complex and there are a diverse range of Italian visas that are available. Please contact our immigration lawyers today to learn more about visas for Italy as it applies to the specifics of your situation.