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:
  • Exempt income
  • Individual receiving employment income from a single employer
  • Individual receiving income(s) already taxed at source (i.e. dividends)
  • Individual receiving employment income below € 8,000
  • Individual receiving retirement income below € 7,500

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:
  • 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

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:
  • Residential and commercial properties
  • Foreign bank accounts
  • Shares owned in private or public companies
  • Financial investments
  • Boats, yachts, and airplanes
  • Precious metals
  • Artwork
  • Life insurance and stock options

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:

  • Tax preparation
  • Tax assessment
  • Tax filing
  • Tax minimization strategies

​Don’t miss the deadline and file your taxes now.

2 thoughts on “FILE YOUR TAXES IN ITALY”

  1. Hi, thanks for such an interesting article. I would have liked to follow the link to an older posting “It is extremely important to report your foreign holdings as large fines apply, check this older post” but that no longer exists.

    What I was hoping to find out is if I need to pay IVAFE on my Uk pension pots.

    regards Mark

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