Personal Tax in Italy
- Tax Base For Residents and Non-Residents
- The taxation basis for expatriates living in Italy but who are not classified as residents is different to the residents’ basis detailed previously. Non-residents are only taxed on income and gains arising in Italy, compared to worldwide income and gains for residents.
|The income tax rate||Progressive up to 43%|
|EUR 0 - 15,000||23%|
|EUR 15,001 - 28,000||27%|
|EUR 28,001 - 55,000||38%|
|EUR 55,001 - 75,000||41%|
|EUR 75,001 and over||43%|
- Allowable Deductions and Tax Credit
- Maintenance allowance; university expenses; medical expenses (if they are over 129 EUR); dependent elderly or disabled persons; etc.
- Special Expatriate Tax Regime
Expatriates living in Italy will be classified as a Resident or Non-Resident. Non-residents are only taxed on income and gains arising in Italy, compared to worldwide income and gains for residents. Individuals are considered residents if:
- for a period of 183 days they are registered with the registry office of the Population Registry (Anagrafe);
- for a period of 183 days has their principal place of business or residence in Italy;
- for a period of 183 days has his centre of vital interest (i.e. his family) in Italy.
- Capital Tax Rate
There are no wealth taxes in Italy.
Inheritance tax is paid by heirs or legatees on the net amount inherited by each recipient from the estate of any deceased person who is considered to be a resident of Italy. The amount payable depends on the heir’s relationship to the deceased and ranges between 4% and 8%.
In the financial sector, an extra 10% tax is imposed on bonuses and stock options when exceeding three times the employee's fixed salary.
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