Many foreigners decide to reside in Italy while still maintaining the source of their earnings (stipends, pensions, rental income, interests, dividends, etc.) and their own investments (properties, bank accounts, financial activities, corporate shares, etc.) abroad.
People living in Italy should declare and pay taxes in Italy for all earnings wherever they are produced. In fact, art. 3 of the TUIR states that taxation is applied on the overall income of a person, composed of all earnings, net of deductible fees (principle of worldwide taxation).
Fiscal residence in Italy is recognized when, for the main part of the year (to be precise, more than 183 days), the person satisfies at least one of the following requirements: 1) is enrolled in the Registry Office of the Town’s Resident Population; 2) has established domicile in Italy; 3) has established residency in Italy.
Fiscal requirements: obligations and deadlines for 2018
Therefore, foreigners who satisfy at least one of the above requirements are fiscally resident in Italy and subject to all the fiscal obligations called for by Italian law. Here in synthesis are the main obligations and deadlines for the year 2018:
|18 June 2018||Calculation and payment of 2018 IMU deposit (single municipal tax) and
TASI (tax on indivisible services). Only in the case of ownership of
properties in Italy.
|2 July 2018||Calculation of taxes on 2017 earnings (wherever produced, whether in
Italy or abroad) and payment of the balance
of the taxes for the year 2017 and of a first payment of taxes for the year 2018 (40% of the 2017 tax balance). Note that the overall amount
of the 2017 balance can also be paid
in installments, up to a maximum of 6 monthly
|23 July 2018||Transmission of the 2017 “simplified” tax declaration (Form 730), where
the requirements are met for being able to use this type of tax declaration.
|31 October 2018||Transmission of the 2017 “ordinary” tax declaration (Earnings form PF).|
|31 October 2018||Transmission, together with the 2017 earnings declaration or separately
if Form 730 has been presented, of
the appropriate declarations where all property investments, mobile assets and financial investments held abroad
(square RW) should be declared, also all foreign
earnings of a financial nature (frames RM, RT).
|30 November 2018||Payment of the second tax balance for the year 2018 (60% of the 2017 tax
balance). Note that such payment should be made in one installment, with no
possibility of multiple payments.
|16 December 2018||Calculation and payment of the 2018 IMU (single municipal tax) and TASI
(tax on indivisible services) balance. Only in the case of ownership of
properties in Italy.
The framework of the requirements for those intending to reside in Italy is therefore quite detailed. Sometimes it is even complicated for those who have property abroad. We recommend that you resort to expert professionals in order to not incur errors and possible sanctions. Remember that Italian law allows you to be excused for eventual errors or violations, even from previous years, through the action of “active repentance” (ravvedimento operoso).
This article was originally published in Tuscany’s Grapevine Magazine with the title “Fiscal Requirements for Foreigners Residing in Italy”.