Working in Italy as an Employee of a Foreign Company
Working as an employee full time in Italy If you are an employer outside Italy and thinking of hiring an employee in Italy, the legal, tax and social security ramifications can be complex. Liability of the employer to Italian social security If the employee is
Translation of Post 2024 Impatriates Relief – Base Legislation
This is a fairly literal translation into English of the Italian legislation implementing the Impatriates Relief in its post 2023 version. The text is given simply as a courtesy and should not be relied upon for any decision on whether the Relief applies in any
The Italian Fiscal Code Number
The Fiscal Code Number (Codice Fiscale, Italian taxpayers’ identification number, TIN, tax code, call it what you like) is a unique taxpayer code that identifies all individuals in their dealings with the Italian authorities […]
TFR – the Trattamento di Fine Rapporto or Employee Leaving Indemnity
What is the TFR? Employment agreements in Italy are generally governed by the terms and conditions of the relevant national collective labour agreement (CCNL) negotiated from time to time by the Italian government, the trade unions and employer organisations. These standard contracts make provision for a series of provisions applicable to the hire of individual employees in Italy. Regardless of
Tax credit for employment income
Italy has no personal relief nor (any longer) a no-tax zone. This means that you start paying income (at 23% – see the marginal rates here) of the first euro of income. However Italy has an intricate system of tax credits (described as “deduzioni” –
Special Tax Regime for University Professors and Researchers moving to Italy
A 6-18 year preferential tax regime granted to professors and researchers who transfer their tax residence to Italy in order to work from Italian soil […]
Small taxpayers – The Regime Forfetario – Flat Rate Tax Regime
A special tax scheme (Regime Forfettario) offers a flat rate on gross income for taxpayers looking to get themselves registered for VAT and start a self-employed business or profession. The various schemes for small taxpayers (the Regime dei Minimi/Regime Forfettario) have seen a number of
Request an Italian Fiscal Code Number
We have teamed up with ILF Law Firm to offer the service of obtaining your Italian Fiscal Code Number (codice fiscale). Read on for more details. Obtain your Italian Fiscal Code Are you a foreigner requiring an Italian fiscal code? Look no further than
Reform of the Italian Impatriates Regime, Tax Residence Test and Incentives for Transfers of Businesses to Italy.
Reform of the Impatriates Regime The Italian Council of Ministers has approved approved the final draft text of the law modifying the Impatriates Regime. See this article for the latest information Italian Council of Ministers Press release n. 54 of 16 October 2023Reform of
Personal income tax (IRPEF) rates from 1 January 2024
These are the personal income tax rates that apply after 1 January 2024. For applicable rates before that date please click …. […]
Occasional Services
Advance Communication of Occasional Hires The Labour-Fiscal Decree no. 146 2021, linked to the Budget Law 2022, introduced the obligation of prior communication of the use of occasional self-employment. On this subject, the Labour Inspectorate has published note no. 29-2022, with instructions on how to
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. It
Italy enacts new Digital Nomad Work Visa
The Digital Nomad Visa On 4 April 2024 a Ministerial Decree issued by the Italian Interior Minister was published in the Italian Official Gazette. Effective 5 April 2024, the Decree implements the Digital Nomad Visa and Stay Permit envisaged by a 2022 Law amending the
Italian Statutory Tax Residence Test For Individuals: 2024 changes
The Legislative Decree on International Taxation, No. 209 of 27 December 2023 introduced some important modifications to the Italian rules on the tax residence of individuals and the statutory test of tax residence (STTR). The STTR contained in art. 2, para. 2 of the Italian
Impatriates Regime 2024
New rules for the 2024 Impatriates Regime for Individuals Legislative Decree no. 209 of 27 December 2023 was published in the Official Gazette (OG General Series No. 301 of 28-12-2023) and is stated to enter into force from 1 January 2024. The Decree, an executive
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
Estimating your Italian tax liabilities (Employees)
Under current Italian tax residence rules you are considered as either tax resident or not for any full tax (calendar) year – there is no split year concept, except in some limited circumstances – and you will deemed resident in Italy under the Italian statutory
Do I need to file an Italian Tax Return?
The answer is most probably yes as the reader will desume from reading the instructions from the Italian tax return (these are from the 2023 return). The rules are complex and there are many exceptions and derogations. The rules can be summarised as follows, but
“Impatriates” – 70%/90% Tax break to attract “human capital” to Italy – pre 2024 Rules
The Italian Council of Ministers in a Press Release no 54 of 16 October 2023 proposed a significant reform of the Italian Impatriates Regime. The reform was enacted by Legislative Decree Dec. 27, 2023, No. 209 which was published in the Official Gazette (OG General Series No.
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