Just like every year, we are approaching the tax season in Italy; filing taxes and assessing any tax liability (or refund) might be confusing and nerve wracking.
I hope to clear some doubts about filing taxes in Italy. Who has to file taxes?
Not everybody has the obligation to file taxes. Some individuals are exempt from filing taxes:
I am an Italian resident, should I file taxes?
Italian residents are taxed on the WORLD WIDE INCOME regardless of their citizenship, while non residents are ONLY taxed on INCOME MADE IN ITALY.
It does not matter where your income is made or what citizenship you have, if you are resident you have to pay taxes on any income made anywhere in the world Which tax module should I file?
Individuals in Italy can pay taxes using two forms:
Which are the deadlines?
Mod. 730 requires taxes to be filed before July 23rd.
Mod. UNICO requires taxes to be file before October 31st. How long is the Italian financial year?
The Italian financial year starts January 1st and ends December 31st; therefore, in 2017 we file taxes on 2016 income.
Which deductible items can I claim?
The Italian tax code allows individuals to recover deductible items paid during the fiscal year. The following list focuses on the most common deductible expenses:
What about foreign assets?
Italy requires its residents you to declare some financial instruments and properties held outside Italy. The following items have to be declared:
How can Accounting Bolla help you?
Accounting Bolla is a chartered tax accountant in Italy. We can help you out in sorting your tax position as well as filing taxes, keeping your tax affairs in order.
12 Comments
David Granito
9/29/2018 07:23:48 am
I am a dual citizen with US and Italy. I established residency here in late November 2017. My retirement income is from the US and is taxed there accordingly. When do I start filing taxes here in Italy? My understanding is that the is an agreement between the US and Italy in that I would not pay taxes on US income to Italy? Also, I would start filing taxes here in 2019 for 2018.
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Nicolò Bolla
9/29/2018 12:12:29 pm
Dear David,
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David Granito
9/29/2018 12:24:06 pm
Thank you for the information. I will definitely be reaching out to you next year. We are outside Florence. Is that a problem?
Nicolò Bolla
9/29/2018 12:25:32 pm
I provide a full tax service online, so being outside Florence is not a problem at all.
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Joseph
10/3/2018 03:59:37 pm
Nicole,
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Nicolo Bolla
10/3/2018 04:04:31 pm
Dear Joseph,
Hugh holland
1/21/2019 12:16:35 pm
Hi my wife is an Italian citizen and I moved here and got a soggiorno di famiglia in Aug 2018. I am retired U.S. military and that is my only income.
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Nicolò Bolla
1/21/2019 08:41:17 pm
Dear Hugh,
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Virginia Hamilton
3/17/2019 08:29:03 am
I am a resident of the US who lives in Florence. My only income is Social Security and two retirement pensions, plus whatever interest I earn. I have no financial holdings in Italy. Am I required to file an Italian tax return? Thank you for your help.
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Nicolò Bolla
3/17/2019 11:24:47 am
Dear Virginia,
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Virginia Hamilton
3/18/2019 11:09:13 am
Thank you for your prompt response to my first email. My pension income is 58 percent retirement from a government agency, 33 percent Social Security, and 9 percent from a private entity.
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Nicolo Bolla
3/18/2019 12:38:50 pm
You should then report the Social Security and the Private pension fund.
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January 2021
AuthorAfter moving back to Italy from the United States in 2013, I realized how much an accounting and tax firm was needed to help expats living in Italy to comply with the local tax regulations. |