Living in Italy – Working Through a Foreign Company

Tax Resident in Italy Doing Business Through a Non Italian Company Modern information technology permits people to work from a laptop or computer wherever they find themselves. In the circumstances, you might think that using a foreign company can help reduce your tax burden.  For the self-employed – freelances/contractors –  it is tempting to bill […]

Italian tax aspects of renting Italian real estate – for landlords

Short-Term Rentals Flat Tax We understand that the draft Italian FY 2026  Finance Law  contains a proposal to raise, from 21% to 26% the flat tax (cedolare secca) on short term lettings via rental platforms (e..g Airbnb).   If the law is approved in this sense, rentals through digital platforms such as Airbnb will be taxed […]

Hiring an Employee – the Permanent Establishment risk

A non-Italian business considering employing an individual in Italy needs to consider whether the activities carried on by an Italian based employee in Italy create a corporate income tax (IRES) liability on the profit attributable those activities. Foreign corporations with a “permanent establishment” (or fixed base) in Italy generally need to register with the Register […]

The Italian Representative Office

Foreign companies are able to register (with Business Registry at the Italian Chamber of Commerce.) If the company intends to carry on certain limited activate operate in the territory of a foreign country, without necessarily having to establish itself in one of the corporate forms provided for by the legislation of that State, thus maintaining […]

White List Countries

The Italian government originally published a list in 1996  – known as the White List – concerning changes to the tax regime for interest, and other income on bonds and similar securities, public and private.  A reduced rate of tax was available to income deriving from White List countries, i.e. those countries with which Italy […]

Extended definition of Permanent Establishment

Italy’s 2018 Finance Act made some significant changes to the definition in the domestic Tax Code of Permanent Establishment (PE). Specifically the changes: extend the definition of agency PE; make ALL the listed activities (deriving from the OECD standard model) which are deemed not to give rise to a PE conditional on the activities being […]