Taxation in Italy
Every individual taking part in financial transactions in Italy will require a tax identification number (codice fiscale). The Codice Fiscale is issued by the Agenzia delle Entrate and no other external body is authorised to issue the code. To receive your tax code you will need to visit the local Agenzia delle Entrate office or the town hall with identification and a residence permit.
The rate of VAT (Imposta sul Valore Aggiunto - IVA) is 20% and Income tax is generally deducted directly from salaries - you will need to discuss your tax position
with your employer before accepting a job. The UK has a double taxation agreement with Italy to avoid the unfairness of getting taxed in two countries and it is available from HMRC.
It is essential that you get your tax and finances in order before you start the moving process. There are complex laws regarding inheritance tax and it is best to seek advice from a professional as considerable savings can be made. Through some research and advice offshore bank accounts can be an excellent way of saving money, if you understand the system.
