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Double taxation and Italy

mrwigglesburth

Hi, I wonder can anyone, Irish or Italian, shed some light on this for me? I'm Irish, my partner is Italian. She has lived here in Dublin for two years, working PAYE for an Irish company. She tells me that there is an Italian regulation that states that (officially) she should be registered with the Italian tax authorities as working in Ireland and that she should, by right, be paying tax in Italy as well as Ireland. As she explains it, she is earning 30k here and paying tax at 20%. In Italy, an income of 30k is subject to 35% tax. If she abides by Italian law she must pay the difference in tax, 15%, to the Italian taxman. This sounds crazy to me as the Italian tax bracket does not take into account her much higher expenses (rent, cost of living, car insurance etc) that she faces here in Ireland.
I'm wondering is she is right and if so, what do other Italians do? She is afraid to talk to her compatriots as she is in fear of them informing on her. (She comes from small town Italy where such things are not unheard of apparently).
She may soon come into some inheritance in the form of money and a small property and I fear that things could get messy. I have tried searching revenue.ie to no avail.

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Dante

mrwigglesburth wrote: »

Hi, I wonder can anyone, Irish or Italian, shed some light on this for me? I'm Irish, my partner is Italian. She has lived here in Dublin for two years, working PAYE for an Irish company. She tells me that there is an Italian regulation that states that (officially) she should be registered with the Italian tax authorities as working in Ireland and that she should, by right, be paying tax in Italy as well as Ireland. As she explains it, she is earning 30k here and paying tax at 20%. In Italy, an income of 30k is subject to 35% tax. If she abides by Italian law she must pay the difference in tax, 15%, to the Italian taxman. This sounds crazy to me as the Italian tax bracket does not take into account her much higher expenses (rent, cost of living, car insurance etc) that she faces here in Ireland.
I'm wondering is she is right and if so, what do other Italians do? She is afraid to talk to her compatriots as she is in fear of them informing on her. (She comes from small town Italy where such things are not unheard of apparently).
She may soon come into some inheritance in the form of money and a small property and I fear that things could get messy. I have tried searching revenue.ie to no avail.

I'm far from an expert expert but that sounds very suspect to me. I can't see why she would be liabale for any tax in Italy when she lives & works in Ireland and is an Irish tax resident.

A very quick Google led me to this on the PWC website https://taxsummaries.pwc.com/italy/individual/taxes-on-personal-income

Non-tax resident individuals:

Tax non-resident individuals are subject to PIT (IRPEF) only on ‘income produced’ in Italy (i.e. employment income related to the work activity performed in Italy). Therefore, the foreign incomes are not relevant to the purposes of taxation in Italy.

LawBoy2018

mrwigglesburth wrote: »

Hi, I wonder can anyone, Irish or Italian, shed some light on this for me? I'm Irish, my partner is Italian. She has lived here in Dublin for two years, working PAYE for an Irish company. She tells me that there is an Italian regulation that states that (officially) she should be registered with the Italian tax authorities as working in Ireland and that she should, by right, be paying tax in Italy as well as Ireland. As she explains it, she is earning 30k here and paying tax at 20%. In Italy, an income of 30k is subject to 35% tax. If she abides by Italian law she must pay the difference in tax, 15%, to the Italian taxman. This sounds crazy to me as the Italian tax bracket does not take into account her much higher expenses (rent, cost of living, car insurance etc) that she faces here in Ireland.
I'm wondering is she is right and if so, what do other Italians do? She is afraid to talk to her compatriots as she is in fear of them informing on her. (She comes from small town Italy where such things are not unheard of apparently).
She may soon come into some inheritance in the form of money and a small property and I fear that things could get messy. I have tried searching revenue.ie to no avail.

Nope, she's not liable for any tax in Italy re her salary here in Ireland.

mrwigglesburth

DaaaaaaaaaaN wrote: »

I'm far from an expert expert but that sounds very suspect to me. I can't see why she would be liabale for any tax in Italy when she lives & works in Ireland and is an Irish tax resident.

A very quick Google led me to this on the PWC website

Non-tax resident individuals:

Thank you for that link, I hadn't seen it. I apologise, we are both a bit clueless when it comes to tax matters.
So, when you go to live an work in another EU country are you automatically considered tax resident there once you start working, have a social security card and pay tax in that country? Or do you have to register as tax resident in some way?

mrwigglesburth

LawBoy2018 wrote: »

Nope, she's not liable for any tax in Italy re her salary here in Ireland.

Thanks.

LawBoy2018

mrwigglesburth wrote: »

Thank you for that link, I hadn't seen it. I apologise, we are both a bit clueless when it comes to tax matters.
So, when you go to live an work in another EU country are you automatically considered tax resident there once you start working, have a social security card and pay tax in that country? Or do you have to register as tax resident in some way?

In Ireland, anyone who's here for more than 183 days in a year will be deemed a resident.

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Just to add, tell her to speak with her consulate, she may have to register with them, too.