Tax Services for Foreigners in Italy: Complete Guide

Introduction

Moving to or investing in Italy also means dealing with the tax system. For foreigners, navigating income declarations, local taxes and special regimes may seem complicated. Tax services for foreigners in Italy are designed to simplify this process, ensure compliance with the law, and avoid costly mistakes.

Tax Code: the first step

The codice fiscale (Italian tax code) is essential for any operation: opening a bank account, signing a contract, buying property or starting a job.
Foreigners can obtain it for free at the Italian Revenue Agency or through the Italian Consulate abroad.

Income tax returns for foreigners

All tax residents in Italy must file an annual income tax return.

• Form 730: for employees and pensioners.
• Redditi Form: for self-employed, freelancers or those with complex income.

👉 Non-residents must declare only Italian-sourced income.

Main taxes in Italy

1. IRPEF: personal income tax, progressive rates from 23% to 43%.
2. IMU: property tax, due on second homes.
3. TARI: waste collection tax, paid by occupants of properties.
4. VAT: value-added tax, standard rate 22% (reduced 10% and 4%).
5. Registration tax: required for leases and property transactions.

Special tax regimes for foreigners

Italy offers incentives for new residents and investors:

• Inpatriate regime: up to 70% of income excluded from taxation.
• Flat tax for new residents: €100,000 flat annual tax on foreign income for wealthy individuals.
• Foreign pensioners: 7% flat tax for retirees who move to small towns in Southern Italy.

VAT number and self-employment

Foreigners can open a Partita IVA (VAT number) to work as freelancers or entrepreneurs.

Steps:

1. Obtain tax code and residence (or tax domicile).
2. Choose ATECO code (activity).
3. Register with INPS and professional orders if required.
4. Issue e-invoices and file VAT returns.

👉 Simplified regimes exist, such as the forfettario regime (flat 15% tax, reduced to 5% for the first 5 years).

Foreign income taxation

Foreigners tax resident in Italy must declare worldwide income, but double taxation treaties usually prevent paying tax twice.

Examples of foreign income to declare: salaries, pensions, dividends, interest, rents from property abroad.

Inheritance and donations

Those with assets in Italy or tax residence must consider:

• Inheritance tax: from 4% to 8% depending on relationship.
• Gift tax: same rates apply.

Why hire a professional

Tax services for foreigners include:

• Obtaining tax code and VAT number.
• Advice on special regimes.
• Annual declarations and payments.
• Relations with the Italian Revenue Agency.
• International tax planning.

👉 A tax advisor specialized in international taxation is key to avoid mistakes and make the most of legal benefits.

Conclusion

Tax services for foreigners in Italy are essential for anyone who wants to live, work or invest in the country. With the right support, you can minimize risks, stay compliant and optimize your tax position.