27 June 2022 17:15

Business taxes to an Italian citizen with an online business outside Italy

Are Italian citizens taxed worldwide income?

Does Italy Tax Foreign Income? Taxpayers who are considered residents of Italy will pay taxes on their income worldwide. Those who are not tax residents of Italy will pay taxes only on their income from Italian sources.

What taxes do Italian citizens pay?

Tax Rates in Italy
Residents are subject to a national income tax, a regional income tax, and a municipal income tax. Income taxes in Italy are based on tax brackets. The more you make, the higher the tax rate you face. For example, if you make between EUR 55,001 to EUR 75,000, you’ll be taxed at a 41% tax rate.

Is there a tax treaty with Italy?

The United States and Italy have several tax agreements in place, including a FATCA Agreement and a Totalization Agreement. The purpose of the tax treaty is so Taxpayers can determine what their tax liability is for certain sources of taxable income.

Does Italy tax foreign capital gains?

The capital gains earned by the sale of non-qualified shareholdings is taxed applying a flat tax rate of 26%.

Do Italian dual citizens pay taxes in both countries?

Unlike the USA, Italy does NOT have laws in place to tax its citizens living abroad. Therefore, if you have both a US and an Italian passport, you can continue to fulfill your normal tax obligations in the US without any additional requirements from the Italian government.

Does dual citizenship pay taxes to both countries?

The United States imposes taxes on citizens regardless of where they live and where they earn their income. Dual citizens who are living abroad may owe taxes to both the United States and the country in which they earn their income.

How much can you earn in Italy before paying tax?

Income tax

Income range Tax rate
€0 — €15,000 23%
€15,000 — €28,000 27%
€28,000 — €55,000 38%
€55,000 — €75,000 41%

What is the tax free allowance in Italy?

Tax allowances include the so-called “no-tax area”, (a deduction of between €3,000 and €7,500 to avoid taxing those on low incomes), as well as allowances for dependant family members (dependant wife and/or children). Some deductible burdens (oneri deducibili) are expenses which can be used to reduce the total income.

Do I need to file a tax return in Italy?

A tax return must be submitted every year, by the following deadlines: For form 730, by 30 September of the year following the tax year, directly online or with the aid of a Fiscal Support Centre (CAF) or a qualified professional, or with tax deducted at source (i.e. by the employer).

How much is business tax in Italy?


Rate: The corporate tax (IRES) rate is 24%, plus the regional tax on productive activities (IRAP, 3.9% in general)—see “Other taxes on corporations and individuals,” below.

What are the taxes on a second home in Italy?

As a second home – you pay 10% of the purchase price (unless the property is classified as a luxury property, in which case you pay 22% of the purchase price). Plus, you pay 200 euros registration tax, 200 euros mortgage tax and 200 euros stamp duty.

Which European country has the lowest income tax?


At a flat 10%, Bulgaria has the European Union’s lowest personal income tax rates.

What countries make you pay taxes if you live abroad?

Most countries ascribe to the philosophy that taxation should be primarily national rather than global, but both the United States and China require their citizens living abroad to pay domestic taxes on income earned worldwide.

What is the benefit of having dual citizenship with Italy?

Italian dual citizenship gives you the freedom to relocate to Italy or anywhere across the European Union. Another advantage of having EU citizenship is the ability to study and work legally across the whole European Union in countries such as Germany, France, Spain, The Netherlands and so on.

What are disadvantages of dual citizenship?

Drawbacks of being a dual citizen include the potential for double taxation, the long and expensive process for obtaining dual citizenship, and the fact that you become bound by the laws of two nations.

Does Italy allow dual citizenship?

Yes. Italy passed a law in 1992 allowing those of Italian descent to lawfully obtain dual citizenship. Italy requires you to prove your Italian ancestry and apply for citizenship through your local Italian consulate. Italy does not require you to renounce your current citizenship(s) when claiming dual citizenship.

What are the pros and cons of dual citizenship in Italy?

Italian Citizenship Pros and Cons

  • Pro #1: You can live, work, and study anywhere in the European Union. …
  • Pro #2: Uh, can we say “affordable education”? …
  • Pro #3: Enjoy world class medical care… …
  • Pro #4: Pass it on to your family. …
  • Con #1: It can be time consuming. …
  • Con #2: It may be costly. …
  • Other Italian citizenship pros and cons.

Can you have 3 citizenships?

Yes, you may hold citizenship in three countries. The same rules apply as for dual citizenship — not every country allows for multiple citizenships, so you would need to check whether your country of origin permits triple citizenship.

What country is the hardest to get citizenship?

The most difficult countries to obtain citizenship include Vatican City, Liechtenstein, Bhutan, Qatar, Saudi Arabia, Kuwait, Switzerland, China, and North Korea. If you have ever submitted an application for citizenship, you will know just how difficult the process can be.

Can I have 4 passports?

You can have as many citizenships as you want, but how many should you have? Well, it’s all up to you. Four passports are usually sufficient, however, for some people, two or three will suffice. The first step is to diversify, and then you should cover all of your bases.

Can I use 2 different passports for entering and leaving a country?

Dual nationals may also be required by the foreign country to use its passport to enter and leave that country. Use of the foreign passport to travel to or from a country other than the United States is not inconsistent with U.S. law.

Which country allows triple citizenship?

There are two countries in the European Union where this is possible: Malta and Cyprus; as well as the five Caribbean countries of Antigua and Barbuda, Grenada, Dominica, St. Kitts & Nevis, and St. Lucia. Additionally the countries of Vanuatu, Montenegro, Turkey and Jordan offer citizenship by investment programs.

Which country does not allow dual citizenship?

Countries that do not allow dual citizenship

Afghanistan El Salvador Singapore
Andorra Estonia Slovakia*
Austria Georgia Tanzania
Azerbaijan India Thailand
Bahrain Indonesia Ukraine