Today I’m going to talk about the new regulation that is going to be put in place and it is going to be published by the Italian government very very soon…If you are a digital nomad and you want
to move to italy, now you’re going to have an easy life.
The Italian government wants to put a new visa program just for digital nomad people but how does it work ? This is program is addressed specifically for immigration purposes, so you don’t have to anymore follow the classical immigration procedures (if you’re not of course an EU citizen) but you can basically move to italy simply respecting three basic rules:
- You can stay in Italy for just one year using.
- You have to be online which means that you have to prove to work for a foreing company as a freelancer or self-employed or, alternatively, you can also be employed by a foreign company and this foreign company requires you to work online.
- You have to be a professional (or master certain skills) with a type of job which is possible to be performed entirely online or remotely.
Of course if you move to italy as a digital nomad exploiting this program you are going to pay taxes in Italy and here comes ESEntaxa! So, we are here basically to tell you exactly how to optimize as much as possible taxes for that specific year that you want to spend in italy as a digital nomad.
In certain cases, there is the possibility to not pay taxes at all in Italy even though you’re going to spend one specific year!
You can basically avoid paying taxes in Italy if you relocate at the end of June or beginning of July and you stay up to June of the following year.
Well with this trick you can live in Italy across two fiscal or tax years and in each fiscal year you spend less than 183 days and since the fiscal year are accounted independently you are not liable to Italian taxes. In addition, working for a foreing entity without having a permanent and/or a fix base or office where you carry out your work, doesn’t bring you to the risk of generate your professional income as it would have been produced inside the Italian territory avoiding the risk of any withholding tax as territorial based income for non residents.
Instead, If you move to Italy in January and you stay up to December you have to pay taxes in Italy as you will be considered Italian fiscal resident and liable for world wide taxation for that specific year. This visa program for digital nomad matches perfectly with the Forfait Regime (in Italian Regime Forfettario). For one year you will pay only 5% taxes on your entire income without any limitations since in December, if you leave Italy, you will have to close this Italian VAT position. The Forfait Regime allows you to issue invoices without adding the VAT also toward B2C businesses making your business activity way more competitive on the market. The accountability it’s also straightforward since you don’t have to account the real cost activity but just a percentage defined by the Italian State making the accountability cost very limited. The Social Contribution for the Forfait Regime is also very small compared to the ordinary Italian Regime.
On the other hand, the Inpatriate Regime for this program is not compatible since it requires to stay in Italy at least two fiscal years.
If you want to know more about it or if you want a tax simulation of how much taxes you’re going to pay if you want to relocate to Italy you can write to us at info@esentaxa.com or visit our website www.esentaxa.com.
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