I’m an Italian-American dual citizen with no ties to Italy beyond a passport, living up north working for NATO as a US citizen. I have been offered some potential work down in Italy that would pay on a freelance basis by a US firm for a weekend of on-site work per month. As I maintain my tax residency in the US, I’m trying to figure out how to work this legally so I stay out of any tax troubles with the Italian government. Any input would be appreciated!
I’m no specialist, but think…
you’re trying to work in Italy as an italian? pay to Italy (get the tax ID, and so)
you’re trying to work there as an unitedstatesman (cause Americans we’re all LOL), then you have to ask for permits, work papers, etc etc
Then, if you pay taxes for a work done in italy as an italian, I don’t think the US can claim for that, do they?
My situation is a bit interesting. Basically, working for NATO, due to the way the treaty is set up I am employed and taxes as if I was in the US which is my tax home. The opportunity in Italy is with an American company but on a freelance basis.
I’ve tried reading some material on the tax law but I am not sure if I understand it correctly. Basically what I have read says that those who are not tax resident in Italy (less than 183 days) and who make less than a certain amount required for an Italian tax return to be filed would not be taxed.
Having ‘lived’ in Italy for 22 years (until quite recently) my advice is not to try to be legal as it causes all sorts of problems, and the bureaucratic laws and the southerners in the Questura etc who make these forms/decisions will delay things and it will go on and on.
I was living there, but earning in the Persian Gulf and so went to the Questura for a living permit but without liability for taxes. They said I represented a ‘black hole’ in their regulations, and also being British (and part of EU) they did not, and could not issue a Permesso di Soggiorno.
They sent the papers to the Head Questura for Toscana in Firenze and its still there after more than 18 years.
So just forget it - send them a ‘fake’ bill for your services every month, and tell them to pay you in cash. Believe me they will also be very happy to pay you that way as they do not have to ‘employ’ you legally with all the various contributions and red tape that an employer there must endure.
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become an e-resident in estonia and form a corporation…then pay yourself as an employee, and domicile the income in the states…if you’re not talking about much money this probably is not the best solution…i’ll cost about $600 to set up the corporation in estonia - and then there’s maintenance…
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I’m not sure if I’m missing something here but if you don’t live in italy for more than half year + 1 day, you’re not an italian tax resident and you are not taxed in italy.
If you need to be a freelance business, and it’s okay for your potential customer to be an american “company”, then open your us company according to your laws. In this way you’ll be an american business having customers in italy. Won’t need to pay anything in italy.
Obviously, you’ll have to declare the money you make with the business in the US.
If you send them a fake bill, you’ll be “stealing” because you’re not declaring.
Plus, italian operating companies should verify their “seller” . If you sign a contract, most likey you’ll have to send them proof that the company exists and blabla… they need to make sure who they’re dealing with.
Gert has it here, I operate a UK company and do a lot of work for Italian engineering agencies. Supply cert., of incorp., and short form contract then carry out the work in Italy, Germany or UK then invoice.
Tax paid in UK. All expenses for travel accommodation etc., are deductible against that tax bill whatever country they are incurred in.
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