Saving money in piggy bank | FILE YOUR TAXES IN ITALY IN 2020

FILE YOUR TAXES IN ITALY IN 2024

Just like every year, the Italian tax season is approaching fast, and we are facing new updates and changes from past years.
Filing taxes and assessing your tax liability (or refund) might be confusing and nerve wracking, however, this article sheds some light on the matter.
Saving money in piggy bank | FILE YOUR TAXES IN ITALY IN 2020

Who has to file taxes?

Not everyone is required to file taxes. The following individuals are exempt from filing taxes:

  • Individuals receiving only exempt income
  • Individuals receiving employment income from a single employer
  • Individuals receiving income taxed at source (i.e. dividends)
  • Individuals receiving employment income of € 8,000 or less
  • Individuals receiving retirement income of € 7,500 or less

If you want to claim any deductible item, you should file your return and claim your tax refund.

I am an Italian resident, should I file taxes?

Italian residents are taxed on the WORLDWIDE INCOME regardless of their citizenship, while non residents are ONLY taxed on the INCOME MADE IN ITALY.

It does not matter where your income is made or what citizenship you have, if you are a tax resident of Italy, you MUST pay taxes on any income made anywhere in the world.

Accounting's documents | FILE YOUR TAXES IN ITALY IN 2020

Which Italian tax form should I file?

Individuals in Italy can pay taxes using these forms:

  • Mod. 730
  • Mod. Redditi

The Mod. 730 can be filed by employed individuals, while everyone can file taxes using the Mod. Redditi.

The Mod. 730 process tax refunds FASTER than the Mod. Redditi.

Which are the main tax deadlines in Italy?

The Italian tax year is the same as the calendar year, running from January 1st to December 31st; the 2020 tax season is about income and expenses incurred during 2019.

The main tax return deadline is November 30th 2020, however, the earlier deadline of September 30th applies only to Mod. 730.

If you miss the November 30th deadline, you can still file your taxes within 90 days paying a late fine of € 25.00.

Check also the video below for more informations about this.

What happens if i miss the deadline?

Unfortunately Italy has no mitigating factors, nor amnesty program in place. If you miss the deadline you face FULL FINES and PENALTIES.

First of all, you will receive a general fine ranging from € 250.00 to € 1,024.00 for not filing taxes on time, and if your return ends up in a tax liability, a further fine ranging from 120% to 240% of each tax liability is applied.

Finally, if you were required to disclose any foreign asset, you will face a fine of 3% up to 15% of the asset value (doubled if your asset is held in a black listed country/jurisdiction).

Be aware that each fine applies to EVERY missed tax return.

Check also this video about tax controls in Italy or our video about tax overdue in Italy.

Which deductible items can I claim?

The Italian tax code allows individuals to recover deductible items paid during the fiscal year. Among the most common deductible expenses there are:

  • Family members deduction
  • Health expenses
  • Loan interest paid on main residency
  • Kindergarten fees
  • College tuition and fees
  • Rent paid
  • Family member sport expenses
  • National Insurance Contribution paid
  • Expenses for building renovation & recovery
  • Forniture renovation expenses
  • Expenses for building energy efficiency improvements
  • Innovative startup investment
  • Seismic Bonus


You can then offset those items against your tax bill to reduce your tax expenditure and possibly claim a tax refund in Italy.
If you are going on holiday in Italy, check also our article about Italian tax refund.

Accounting and taxes | FILE YOUR TAXES IN ITALY IN 2020

I have income abroad. What should I do?

The first thing you have to check is the Double Tax Treaty in place between the foreign country and Italy; if there is any provision to avoid taxation of foreign income in Italy.

In any case, you can ALWAYS deduct any tax paid abroad against the liability calculated in Italy; therefore, if the Italian tax payable is higher than the foreign country one, you are required to pay the difference. On the contrary, you do not have to pay anything.

In few words, foreign taxes do not add up, you subtract one from the other.

Regardless of the fact that your tax return ends in a liability or not, you are required to disclose your Foreign Income.
Check out article about the flat tax for foreigners living in Italy or our article about tax credit for foreigners coming back in Italy.

What about foreign assets and wealth tax?

​Only Italian residents are required to disclose foreign held assets. The following items held abroad must be declared:

  • Residential and commercial properties
  • Bank accounts
  • Deposit accounts
  • Shares owned in private or public companies
  • Investment portfolio
  • Boats, yachts, and airplanes
  • Precious metals
  • Artwork
  • Life insurance and stock options
  • Private pension funds
  • Cryptocurrency

If you paid any tax in the foreign jurisdiction, you can use the TAX CREDIT to avoid double taxation!

How can Accounting Bolla help you?

Accounting Bolla is the leading chartered tax accountant in Italy for expats. We can help you out in sorting your tax position as well as filing taxes, keeping your tax affairs in order.

Want to read more? Check also our guide about freelancing in Italy, or retiring in Italy.

26 thoughts on “FILE YOUR TAXES IN ITALY IN 2024”

  1. I have a question I have declared my taxes for 2020 and my income was under 5000 euro.
    I am from holland and have a study depth the dutch organisation duo does not accept my tax declaration as proof if income.
    But I cant get a formula that proofs my income because the only way that is is by the tax declaration

    or is there a way to get a letter with proof of my income from the tax office?

    thanks a lot in advance

    1. You should have proof of your income sources regardless of the fact you would file a tax return. Did you try to request a tax residency certificate?

  2. I am a returning Italian citizen who has taken up residency in July 2021 – when would I need to file taxes? And I’ve read that there is an exemption/deduction for returning citizens?

    1. You should file your return in 2023 since your first tax residency started in 2022. There might be exemptions and reductions for new residents

  3. My UK source pension is not taxable in Italy under the UK/Italy DTA. It is taxed in the UK. Do I need to declare the pension income on my italian tax return?

  4. Hi, I am a Chinese, and have been in Italy as a postdoc for two years, according to the list 20 of ‘AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF ITALY FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME’, I donot need to pay tax during my postdoc in Italy, How can I apply for tax refund? thanks a lot in advance

  5. Hi there,

    I am a self employed Italian resident but a tax resident in the UK. I would like to transfer my taxes to Italy. I believe maybe there is a treaty between the UK and Italy, can you tell me more about this?

    Also, I understand that under the ‘decree of growth’ law, I am eligible to receive deductions on my taxable foreign income, also recieving further benefits as I am located in Southern Italy.

    Can you clarify how I transfer my tax and what process I need to follow to pay tax as a self employed remote working who does not earn income in Italy?

    Any help or direction you can provide would be greatly appreciated.

    Thank so much.
    Jai

    1. Dear Jai, as a new resident in the South you can claim the 90% exemption on your freelance income for the first 5 years, and in order to do so you must acquire residency in Italy and operate your freelance activities from here.

  6. I am a US citizen married to an Italian. I have Italian residency. I am employed by a US religious organization based only in the US. How do I file?

  7. Patricio Cassinelli

    Hello Nicolò,
    I just found your website. Thanks a lot for all the content you put out! I am not an italian tax resident. I have just bought 4 aparments italy. I am planing on renting them with a regular contract, not through airbnb. I will begin renting them in June 2022. I will have to pay taxes in italy based on my italian income. I am a bit confused as to when do I need to pay my anticipo this first year and when do I will need to file my taxes this firt year. If I dont recive an income by June 30th would I only pay one anticipo on november 30th 2022? Do I need to file taxes for 2022 on nov 2022 as well? Thanks. Patricio.

      1. patricio cassinelli

        Thanks for your answer!! Do you mean that my first advanced payment is due on June 2023 or that my final balance for 2022 is due on June 2023?
        Thanks again!

      2. Hi Nicolò,

        I am from Holland and since this week (march 2022) i am a new registered citizen in Italy. I work in Italy as an employee for a Dutch company. My first tax declaration will be in June 2023, because my tax residency starts in January 2023 (please correct me if i am wrong). Does this mean my full 2022 income will not be taxed by the Italian law?

        Do you have any tips for me and my employer to maintain our current labour contract? Are there extra requirements for my employer since my tax and social security position will change from the Netherlands to Italy. For example: does my employer need to be subscribed into the Italian tax system in order to pay taxes? And what will those costs be? If these costs are too high, another solution would be to be self employed and work for the same company.

        It would be great if you could help. Thank you very much in advance.

        1. Your tax residency starts in March 2022, and you will be taxed on your full income. Your employer should run an Italian payroll for you, please get in touch and I can help you with a suitable solution

          1. Thank you Niccolo,

            How much will it cost for the Dutch employer to run an Italian payroll?

            Thank you in advance.

  8. Ciao

    I am not sure if I have to file tax return this year or in 2023 with my Italian residency registered with Anagrafe in Nov 2021. Do I need to have the Carta Identita for submission ? I do have the Permesso di Soggiorno, Codice Fiscale and Tessara Sanitaria.

    Thanks

    Judy

    1. if you acquired residency in november 2021, your tax residency has started in January 2022, hence your first return is due in 2023. You don’t need any carta d’identità, permesso di soggiorno, or codice fiscale to file taxes

  9. Hi there,

    In 2021 I earned less than 8000. But I also applied for unemployment benefits. Which still puts me under 8000 a year. Do I still need to file taxes?

    Thanks in advance!

    A

  10. Please can you clarify the deadline for a tax return for a UK Italian resident in 7% tax area of Italy for filing taxes for the year 2022. Is it 30th June or 30th November? Thank you.

  11. Hi,

    I am resident in Italy but from the UK, I have some gold and silver that I bought online. The capital gain will be less then 8000 euros. I dont work. Do I need to file a tax return?

  12. бнанс зареструватися

    I shared this article with my friends, and we’ve been discussing it non-stop. Thank you for the valuable information!

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