Tax Pills

Italians working abroad: a brand-new guidebook to easily manage tax issues
For Italian citizens it is not always easy to identify which kind of taxation is applicable to incomes earned abroad.
Actually, they have to take into account multiple aspects and consider that rules may be different depending on individual situations. For example, everything changes whether or not a Convention for the avoidance of double taxation exists between Italy and the foreign Country in which the worker produces the income, if he is registered or not at the Aire, if the period of stay in a foreign Country is more or less than 183 days.
The Italian Revenue Agency has recently published on its website – - an online guidebook to allay countrymen doubts concerning the correct way to declare and pay taxes in relation to incomes earned abroad. In particular, this brand-new publication provides instructions about how to avoid double taxation, how to benefit from the tax credit for taxes already paid in a foreign Country, how and when it is necessary to register in Aire, the Registry of Italians Resident Abroad. Finally, the guidebook explains how to access to the “voluntary disclosure” procedure by 30 September 2017, to be compliance with taxes and to take advantage of the tax credit for taxes already paid out of the Country.
The worldwide taxation principle
In general, to determine where a citizen has to pay taxes on income, it is necessary to consider the concept of “residence”, according to the Worldwide Taxation Principle, on which tax systems of many European Countries, including Italy, are founded.  So, if an Italian citizen is working abroad but he is still maintaining the Italian residence, he has to pay taxes in Italy also on income earned abroad, unless International Conventions for the avoidance of double taxation contain different provisions. By the way, taxpayers can deduct taxes paid abroad from taxes paid in Italy, in the form of tax credit.
Residence for tax purposes: the 183-day rule – Under Italian Law, an individual is considered resident for tax purposes in Italy if he/she is recorded in the Italian register of resident population for more than 183 days, if he/she is domiciled or resident in Italy or if he/she has moved to a tax heaven, unless proven otherwise. This role is more or less applied in the same way in many Countries and it is an hint for Italian citizens, moving abroad, to understand if it is necessary the Aire enrolment. In particular, the registration is mandatory for citizens who take up residence in a foreign Country for more than 12 months and for citizens residing abroad either as a result of being born there or having obtained Italian citizenship for any reason whatsoever. On the other hand, enrolment in the Aire is not required for citizens who go abroad for a period of less than 12 months, for seasonal workers, for government employees posted abroad and for Italian military servicemen/women working under the auspices of Nato.
International Conventions for the avoidance of double taxation
Italy has bilateral agreements with many foreign Countries to avoid double taxation in all cases where somebody pays taxes both in the Country of income production and in the Country of residence. The Italian law provides for tax credit in relation to taxes paid abroad. In particular, double taxation is eliminated by applying the article 165 of Tuir, according to which Italian taxpayers can deduct taxes already paid in a foreign Country from the net tax that they have to pay in Italy. All the Conventions for the avoidance of double taxation, signed by the Italian Government and currently in force, are published on the Ministry of Economy and Finance website.

Italian housing market: +3.8% in the second quarter 2017
From April to June 2017, Italian real estate market continues to expand, even if with a slower pace. The housing market has increased by 3.8%, namely about 5,000 houses sold over the same period in 2016, while cellars and attics sales has grown by 10.1%. A positive trend has also affected the non-residential market: in particular, offices and retail sector has increased by 6.2% and the industrial one by 4.9%. Among the main cities, good achievement for Napoli, Palermo e Torino, except for Bologna, the only one showing a decrease. These are the main data emerging from the Real Estate Market Observatory (OMI) of the Italian Revenue Agency- Agenzia delle Entrate - inside the Quarterly report published today on its official website. Data used in the report are retrieved from different archives: the cadastral database, the land registry and the Real Estate Market Observatory, all managed by Agenzia delle Entrate. The cadastral database provides information about cadastral typologies, the land registry gives the number of real estate units sold and the Real Estate Market Observatory database provides information about real estate value. Data cover the whole national territory, excluding four areas (Bolzano, Trento, Gorizia, and Trieste) where the cadaster and/or the land registry are managed by local administrations. Real estate units are grouped by use (house, appurtenance, office, retail and industrial) according to the cadastral categories provided in the deeds of transfer.
About the housing market report - In the residential market report, the Real Estate Market Observatory notes a slower growth, although the housing market continues on the uphill trail that has characterized the last 3 years. Between April and June were sold 145,529 houses and 16,400 cellars and attics. Housing market was more dynamic in the Southern area of Italy (+5%) while the lowest value was recorded in Sicilia and Sardegna (+0.9%). Anyway, islands market weighs less than a tenth of the national total sales. The average floor area of the house purchased is 105 square meters, in line with last year’s values. The cellars and attics market has increased about 10%, more in the northern area than in the rest of Italy, where sales leap forward of about 20%. The average area of an appurtenance is 14 square meters, slightly lower compared with the previous quarter of the year.
The main cities - Regarding the main Italian cities, the highest growth rate was represented by Napoli (+13.6%), with 2,082 transactions, followed by Palermo (+8.3%) and Torino (+5.7%). Rome and Milan aligned with the average of other Italian metropolises, rising more than 4% (+4.5% and +4.1% respectively). The housing market in Genova (+1.3%) and Firenze (+0.9%) appears less dynamic, while Bologna was the only big city with a decrease (-4.3%), resulted in about 1.500 transactions in the second quarter of 2017.
The non-residential market - Compared to the same quarter of 2016, the offices and shops market grows by 6.2%. The highest increases have been registered in the North West (with a growth of 10.9%), followed by Sicilia and Sardegna, where the number of sales and purchases rises of 7.6%.
In the same period, warehouses and industries market marks a 4.9% increase: despite of the modest growth, the data for the second quarter of 2017 are close to the levels that preceded the collapse of 2012. This increase is supported by the growth of transactions in the center and in the north west areas (+18.7% and +11.3% respectively), while the sales in the other areas have been more moderate, except for the two main islands, where the Observatory has registered a heavy decline (-37.3%). The residential and non-residential reports, with more detailed information, graphics and data references, are available in Italian on the website

FiscoOggi è una pubblicazione dell'Agenzia delle Entrate - Ufficio Comunicazione
Testata registrata al Tribunale di Roma il 19.9.2001 con n. 405/2001
Direttore responsabile Claudio Borgnino