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.
Read this post and figure out how to deal with your taxes in Italy.
Who is required to file taxes?
Not everyone is required to file taxes in Italy, some individuals are exempt from filing taxes:
Of course, if an individual has deductible items to claim he/she has no obligation to file taxes, however he/she cannot receive any tax refund.
Italian residents are taxed on their WORLDWIDE INCOME, while non residents are taxed only the INCOME PRODUCED IN ITALY.
Italy has no tax citizenship rule. Residents have to file taxes regardless of their citizenships.
When is the deadline?
You must file your taxes before 31 October 2019, you can get a 90 days extension paying a small fine of € 25.00
However, the tax payment for FY 2018 and the required payments on account is due on 30 June 2019.
Employee can file the form 730 falling due on 23 July 2019 granting an express refund in their payslip through the PAYE system.
Is there any tax deductions I can 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:
If you moved to Italy after 2015 you might also benefit of this 50% tax break for new residents.
I already paid tax abroad, am I taxed twice?
You will never be taxed twice on the same income, you can deduct any foreign tax paid abroad as TAX CREDIT against your Italian tax liability. Make sure to keep any proof of it!
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:
Any foreign tax paid can be claimed against
It is extremely important to report your foreign holdings as large fines apply, check this older post.
How can we help you?
Accounting Bolla is a chartered tax accountant in Italy and the UK with a large expertise on expats living in Italy.
Our services include:
Don't miss the deadline and file your taxes now.
Looking for a quote? Click here
After 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.