Expat Exchange
Free MembershipSign In

Italy Expat Forum

7 years ago

Income Tax Information for Residents in Italy

7 years ago
I wanted to share the following information that I have received. My husband and I are trying to ascertain our tax liability once we are living in Italy full-time, so we can plan our annual budget.

I have been in touch with an American tax attorney in Rome who has provided me with this information below in response to my questions.

"The ordinary tax rates that would be applicable to, for example, pension and social security income, are as follows:

from up to rate

0,00 15.000,00 23,0%
15.000,00 28.000,00 27,0%
28.000,00 55.000,00 38,0%
55.000,00 75.000,00 41,0%
75.000,00 over 43,0%

There are additional regional and municipal taxes that are due on top of the above.

As a general matter, a flat tax rate of 26% is payable on investment income but it would be necessary to look at the sources of income to determine whether that would be the case for your income. Also consider that there is a wealth tax due by tax residents on foreign financial accounts and foreign real estate.

Note: Italian annual tax returns must be filed by individuals. Joint returns are not available.

The tax rates are applied to each individual taxpayer. Any joint assets are attributed 50% to each person. Any joint Italian taxes would be creditable 50/50 against Italian taxes (assuming that a foreign tax credit would be available pursuant to Italian law)."

GeoBlue
GeoBlue

Allianz Care
Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Allianz CareAllianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Living in Italy GuideLiving in Italy Guide

Expats in Italy discuss the pros and cons of living in Italy. From bureaucracy to expensive cities, Italy can be a challenge. Most expats find that the amazing food, charming countryside, beautiful beaches and public healthcare make up for the cons.

Italy Forum Italy Forum
Join our Italy forum to meet other expats and talk about living in Italy.

Contribute to Italy Network Contribute
Help other expats and newcomers by answering questions about the challenges and adventures of living in Italy.

Best Places to Live in Italy Best Places to Live in Italy

If you're considering a move to Italy, here are the 15 Best Places to Live in Italy in 2023.

Healthcare in ItalyHealthcare in Italy

An overview of the healthcare system in Italy - public and private hospitals, Servizio Sanitario Nazionale (SSN), getting your Tessera Sanitaria (healthcare card), Covid-19 entry requirements, vaccinations for Italy, prescription medication availability and more.

Cost of Living in ItalyCost of Living in Italy

Expats offer insight into the cost of living in Italy.

Moving to ItalyMoving to Italy Guide

Expats moving to Italy envision a romantic lifestyle in one of the most beautiful countries in the world. However, it is important to make sure that you do comprehensive research and fully understand what it will mean to move to the city, town or village you choose.

Real Estate in ItalyReal Estate in Italy

Real estate listings in popular cities and towns in Italy.

Pros Cons of Living in ItalyPros & Cons of Living in Italy

Take off your rose-colored glasses and learn what expats have to say about the biggest challenges and the greatest rewards of living in Italy.

Retiring in ItalyRetiring in Italy

Advice for people retiring in Italy.

Visa and Residency ItalyItaly Visa & Residency Guide

Expats share their experiences obtaining residency in Italy. They discuss the ins and outs of the applying for the permesso di soggiorno, recent travel issues, permanent residency in Italy and more.

10 Tips for Living in Italy10 Tips for Living in Italy

If you've recently arrived in Italy, here are 10 tips for digital nomads living in Italy.

Allianz Care
Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Allianz CareAllianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Contribute to Italy Network Contribute
Help others in Italy by answering questions about the challenges and adventures of living in Italy.

GeoBlue
GeoBlue

Copyright 1997-2024 Burlingame Interactive, Inc.

Privacy Policy Legal