Italy, tax issue

[erd]

Hello everyone :-)

I am from a Non-EU country, planning to live in whether Italy or France beginning next year, but that probably will be Italy.

I own a house and car here. Will keep the house, sell the car, planning to rent a flat in Italy (probably Sicily region) but the are 2 main questions arising important, will be pleased if you can help.

Planning to buy a 2nd hand Gallardo or brand-new Nissan GT-R, both around EUR 85,000.

For buying a car in Italy, I think I have to be a permanent resident. Am I right? (not sure about about that)

When I qualify for a parmanent resident, then I have to pay taxes, which I don't want. The reason is simple: I have some websites which I earn advertising income. That has nothing to do with Italy. It's not even freelance, cause I will not even trade anything with Italian.

On tax advice websites, it says when you become a resident, you have to pay taxes from all your incomes (international). How can this be? If I earn $200,000 a year, will I give almost 40% of this income to Italian government?

Thanks in advance

[Bevdeforges]

To buy a car in Italy, I don't think you have to be resident there. But to register your car in Italy, you probably have to be resident.

And yes, "resident" means that you pay income tax on whatever income is allowing you to reside in Italy - where that income comes from is not important, it's where you reside while you're making it. What's worse is that if you're resident, you're also expected to pay Italian social insurances on your income so that you're eligible for whatever health care, retirement and whatever other social services they have there.

Depending on what country you are coming from, there are usually tax treaties or special provisions to make sure you don't get double-taxed on your income from elsewhere. But it's one of those facts of life that you wind up having to pay your taxes someplace. (Usually - there are a few tax havens left in this world, but not many.)
Cheers,
Bev

[erd]

Originally Posted by Bevdeforges

To buy a car in Italy, I don't think you have to be resident there. But to register your car in Italy, you probably have to be resident.

And yes, "resident" means that you pay income tax on whatever income is allowing you to reside in Italy - where that income comes from is not important, it's where you reside while you're making it. What's worse is that if you're resident, you're also expected to pay Italian social insurances on your income so that you're eligible for whatever health care, retirement and whatever other social services they have there.

Depending on what country you are coming from, there are usually tax treaties or special provisions to make sure you don't get double-taxed on your income from elsewhere. But it's one of those facts of life that you wind up having to pay your taxes someplace. (Usually - there are a few tax havens left in this world, but not many.)
Cheers,
Bev

Yes, Monaco is too expensive, maybe Seychelles but Seychelles is too far to Begin a new life at the age of 38.

[Yoga girl]

HI

the information you have got is indeed correct. YOu must pay tax in Italy for everything you are earning if you are a resident. You can risk not doing that for other assets etc you have abroad but whether or not they catch you depends on your situation.

May I ask if you will be working there in a company as an employee? Otherwise you might have trouble with your residency as they will expect you to provide evidence that you can support yourself. And this evidence will be kept on the records also for tax purposes.

You cannot buy a car there unless you are a resident. You can however rent one... although I would not recommend it.

Originally Posted by erd

Hello everyone :-)

I am from a Non-EU country, planning to live in whether Italy or France beginning next year, but that probably will be Italy.

I own a house and car here. Will keep the house, sell the car, planning to rent a flat in Italy (probably Sicily region) but the are 2 main questions arising important, will be pleased if you can help.

Planning to buy a 2nd hand Gallardo or brand-new Nissan GT-R, both around EUR 85,000.

For buying a car in Italy, I think I have to be a permanent resident. Am I right? (not sure about about that)

When I qualify for a parmanent resident, then I have to pay taxes, which I don't want. The reason is simple: I have some websites which I earn advertising income. That has nothing to do with Italy. It's not even freelance, cause I will not even trade anything with Italian.

On tax advice websites, it says when you become a resident, you have to pay taxes from all your incomes (international). How can this be? If I earn $200,000 a year, will I give almost 40% of this income to Italian government?

Thanks in advance

[erd]

Hello Yoga Girl.. thanks for writing..

No, I will not work there.. Even as a freelancer.. Not tomorrow, not 10 years later..

If you're a freelancer, let's say making websites for Italian people / companies, you're still stealing job opportunity of an Italian, bacause he would take this job in fact.

In my case, I will have absolutely NO economic activities at all.. But yes, i will open an account and have my payments made to an Italian Bank each month, so probably that will be a problem.. Those are internet advertisement earnings.

[Yoga girl]

If you don't plan on working there then you might have problems with the visa. You will also probably only be able to open an account for a foreigner with the limits that entails and in that case will probably not be liable for tax.
But I suggest you do your homework because all companies in Europe invoice and MUST have a VAT code to pay and to invoice which you cannot have unless you are a resident in one of the EC countries.

The EC is not the UAE..... Dont forget that.

Originally Posted by erd

Hello Yoga Girl.. thanks for writing..

No, I will not work there.. Even as a freelancer.. Not tomorrow, not 10 years later..

If you're a freelancer, let's say making websites for Italian people / companies, you're still stealing job opportunity of an Italian, bacause he would take this job in fact.

In my case, I will have absolutely NO economic activities at all.. But yes, i will open an account and have my payments made to an Italian Bank each month, so probably that will be a problem.. Those are internet advertisement earnings.

[AlexC]

There is an extremely knowledgeable English attorney who practices law in Rome who has posted frequently on the now defunct Italy Mag forums and can advise on taxation issues for expats. If you are serious about moving to Italy it may be well worth it to contact her. She was always generous and forthcoming with her adivce on the forum. I am not able to post the URL but you can Google her law firm also.

Her info is:

Charlotte Oliver
Studio Paoletti