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
Introduction This guide briefly sets out the main issues arising on the short term (<30 days) rental of residential (i.e. non commercial/agricultural) accommodation, located in Italy. This guide does not cover the situation where you are purchasing real estate to run a business (except under the Regime Forfettario) . Nor does it necessarily cover the […]
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 […]