What taxes should a digital nomad working in Italy pay?

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What is the difference between being a tax resident and a non-resident in Italy? Tax residency determines how you are taxed in Italy. Tax residents, those who spend more than 183 days a year in the country or have their centre of economic interests there, must declare their worldwide income.

On the other hand, non-residents are only canada phone number library taxed on income earned within Italian territory, although they may be subject to higher rates in certain cases.

If you work remotely for a foreign company and do not generate income in Italy, you may not have to pay local taxes. However, if you become a tax resident or carry out economic activities in the country, you will have to comply with Italian tax obligations. Investigate options such as the digital nomad visa in Italy , which could facilitate your legal and tax situation.

What tax incentives does Italy offer for expatriates?

Italy has an attractive program called the “Expatriate Regime” (Regime Impatriati), which allows new tax residents to pay tax on only 30% of their income for the first five years. The percentage of this tax in Italy for foreigners can be reduced to 10% in certain regions in the south of the country.