Studio Del Gaizo-Picchioni's activity
Yes, I’m afraid it is. Any income made from a property in Italy needs to be declared in an Italian tax return, and then generally also in your domestic return, where you should receive credit for the tax paid in Italy.Note that this doesn’t just apply to US citizens – it applies equally to residents from any other country, EU or not. The returns for 2014 income are due in by the end of September – let us know if you have any queries or need our assistance.
There is no personal allowance in Italy but there is a system of tax credits which are awarded on the basis of type of income and family situation. On the basis of the information given below, and as a guideline only, the tax burden is likely to break down roughly as follows:
- Gross pay of €15,000
- Gross income tax € 3100
- Less : Tax credit for work as employee € 1400
- Net income tax € 1700
- Less: National insurance contributions (employee) € 1300
- Net annual pay € 11,700
This calculation is on the basis of an employee working in Livorno, Tuscany, where my office is based. Other Regions and Comuni will have different rates of local tax. The calculation does not take into account the family situation, such as wife or dependant children which would give rise to further tax credits.