Taxation in Italy is levied at national, regional and municipal
level. The Italian tax system is managed by the Agenzia delle
Entrate (Italian Inland Revenue). The Tax Year runs from 1st
January to 31st December.
All workers are subject to taxation of their income or other
benefits, except for daily allowances paid for business trips and
lunch tickets. The amount of tax to be paid depends on the type and
duration of the contract.
Depending on your status in Italy (resident or not)
you will be subject to different taxation.
For more information please read
the Guide on
taxation for researchers.
Foreigners living in Italy will be classified as
- for 183 days of a calendar year they were registered with the
registry office of the Registry Office (Ufficio Anagrafe),
- for 183 days of a calendar year they had their main place of
business or residence in Italy
- for 183 days of a calendar year they had their centre of vital
interest (i.e. family) in Italy
Taxes to be paid in Italy if you are resident:
IRPEF (Personal Income Tax)
A progressive scale is applied to successive portions of taxable
income under IRPEF. Personal Income Tax rates range from 23% to 43%
(from 01/01/2007). In addition, a regional surcharge ranging from
1.23% to 2.03% is levied under IRPEF depending on the level of
income and region of residence together with a municipal surcharge
of up to 0.9% depending on the municipality of residence.
The rate depends upon the classification of the employer
for social security purposes and the position of the employee (e.g.
manager). Generally an employee pays approximately 10% of gross
salary whilst the employer's contribution is between 28% and 30% of
gross salary. For more information: INPS (National Social Security
This type of insurance, compulsory for all employers hiring
workers in activities which the law defines as risky, protects
workers from any kind of damage resulting from work-related
accidents and occupational diseases freeing employers from any
civil liability. For more information INAIL (National
Institute for accidents at work)
Regional tax on productive activities (IRAP)
A regional tax of 3.90% on net production value is levied
on the company income of non-commercial bodies and
Taxes to be paid in Italy if you are NOT a
The taxation basis for foreigners 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
Income tax is deducted at source by employers on the basis of the
estimated annual income. The balance of tax due is calculated at
the end of the year. If you are an employee, it is not usually
necessary to complete a tax return, unless you have several sources
of income. The self-employed must complete a tax return and pay the
tax due on their income. Tax is payable a year in advance (in June
and November) on the basis of the previous year's income.
Bilateral agreements against Double Taxation
Foreign researchers who have fixed residence in a country
that has signed an agreement with Italy against double taxation are
generally allowed to choose whether to pay taxes in their country
of residence or in Italy, usually for a maximum of two years. In
order to benefit from such bilateral agreements, the researcher
should provide proof of the actual payment of taxes in their
country of residence (in general this statement is issued by Inland
Revenue or equivalent body).
Italy has signed bilateral agreements with the following
countries: Albania, Algeria, Argentina, Armenia;
Australia, Austria, Bangladesh, Belgium, Brazil, Bulgaria, Canada ,
China , Cyprus, South Korea, Republic of Côte d'Ivoire, Denmark,
Ecuador, Egypt, United Arab Emirates (UAE), Estonia, Ethiopia,
Russian Federation, Republic of the Philippines, Finland, France,
Georgia, Ghana, Germany, Greece, India, Indonesia, Ireland,
Iceland, Israel, Former Yugoslavia, Kazakhstan, Kuwait, Latvia,
Lithuania, Luxemburg, Former Yugoslavian Republic Of Macedonia
(FYROM), Malaysia, Malta, Morocco, Mauritius, Mexico, Mozambique,
Norway, New Zealand, Oman, Netherlands, Pakistan, Poland, Portugal,
UK, Czech Republic, Slovak Republic, Romania, Senegal, Syria,
Republic of Singapore, Spain, Sri Lanka, USA, South Africa, Sweden,
Switzerland, Tanzania, Thailand, Trinidad and Tobago, Tunisia,
Turkey, Ukraine, Uganda, Hungary, Soviet Union, Uzbekistan,
Venezuela, Vietnam, Zambia.
Click here to read
the text of the agreements and for further information.
We suggest you to check your "tax situation" with
your host organisation!!!
Source: Agenzie delle
Minsitry of Economics and Finance; EURAXESS
Useful addresses in Trieste
Useful addresses in Udine