Freelancer Italy tax+socials 4.3%

[no4fresh]

EDIT = IRPEF Taxation 2023 - New INPS Clarification and More News! Is the title of the youtube video, since it seems I can't link the video

I've been looking into the total tax burden a freelancer making around 100k eur would have in Italy. From my research the "regime forfettario" was the best option leaving me at around 26% for tax+socials, but with an upper income threshold of 85k eur.

According to the video I linked, there has been a clarification of the amount of socials(INPS) you have to pay with another regime "regime impatriati". With "regime impatriati" you are only taxed on 30% of your income in northern italy and on 10% of your income in southern italy. Before the clarification it was belived you had to pay INPS on 100% of your income, but he says they now know you only have to pay INPS on 30% or 10% of your income.

So an income of 100k would leave me with a total tax burden of 13.05% in northern italy and 4.3% in southern italy. As the saying goes "when something sounds too good to be true, it probably is".

Do any of you have more knowledge about this, and would like to elaborate on if this could be a legitimate setup?

I belive i've also seen that one of the criterias for the "regime impatriati" is that you need an universety degree or another diploma that says you are qualified to preform activities in the field you are in. So as a consultant with no degree or diploma would I not be eligible for the regime?

 

[JohnLocke]

Sorry the video was removed so I removed that link inside your post.

Feel free to post a NEW video in another post.

 

[European]

EDIT = IRPEF Taxation 2023 - New INPS Clarification and More News! Is the title of the youtube video, since it seems I can't link the video

I've been looking into the total tax burden a freelancer making around 100k eur would have in Italy. From my research the "regime forfettario" was the best option leaving me at around 26% for tax+socials, but with an upper income threshold of 85k eur.

According to the video I linked, there has been a clarification of the amount of socials(INPS) you have to pay with another regime "regime impatriati". With "regime impatriati" you are only taxed on 30% of your income in northern italy and on 10% of your income in southern italy. Before the clarification it was belived you had to pay INPS on 100% of your income, but he says they now know you only have to pay INPS on 30% or 10% of your income.

So an income of 100k would leave me with a total tax burden of 13.05% in northern italy and 4.3% in southern italy. As the saying goes "when something sounds too good to be true, it probably is".

Do any of you have more knowledge about this, and would like to elaborate on if this could be a legitimate setup?

I belive i've also seen that one of the criterias for the "regime impatriati" is that you need an universety degree or another diploma that says you are qualified to preform activities in the field you are in. So as a consultant with no degree or diploma would I not be eligible for the regime?

@no4fresh
I'd shared a video talking about that INPS clarification (plus a link to the official document) in this post:

Social security contributions under “lavoratori impatriati” regime - Italy

The “lavoratori impatriati” regime in Italy allows, under certain circumstances, for a tax exemption of up to 90% of your income. If you make €200K a year as a freelance, for instance, you are liable for income tax on only €20K. There are several threads about this in the forum. My question is...

www.offshorecorptalk.com

Is that the same video you were sharing?

 

[no4fresh]

@no4fresh
I'd shared a video talking about that INPS clarification (plus a link to the official document) in this post:

Social security contributions under “lavoratori impatriati” regime - Italy

The “lavoratori impatriati” regime in Italy allows, under certain circumstances, for a tax exemption of up to 90% of your income. If you make €200K a year as a freelance, for instance, you are liable for income tax on only €20K. There are several threads about this in the forum. My question is...

www.offshorecorptalk.com

Is that the same video you were sharing?

Yes, the same video. If this is true, Italy is gonna be the most attracting country for freelancers. I wonder what the requirements are to qualify for the regime, and how quickly they are gonna make changes because a total tax burden of 4-5% while living in Italy would be a dream for most people.

 

[Mr Gus]

Yes, the same video. If this is true, Italy is gonna be the most attracting country for freelancers. I wonder what the requirements are to qualify for the regime, and how quickly they are gonna make changes because a total tax burden of 4-5% while living in Italy would be a dream for most people.

Yup dreams can turn into nightmares especially for people who move to Italy.

 

[no4fresh]

Yup dreams can turn into nightmares especially for people who move to Italy.

Nightmares in terms of time consuming bureaucracy? Or they doing an audit after the 5 year period and deciding I wasnt eligible for the regime in the first place, and that I should have been taxed at 60% instead of 5% demanding me to pay the difference?

 

[European]

Yup dreams can turn into nightmares especially for people who move to Italya

Care to elaborate?

 

[Cloudbanck]

Nightmares in terms of time consuming bureaucracy? Or they doing an audit after the 5 year period and deciding I wasnt eligible for the regime in the first place, and that I should have been taxed at 60% instead of 5% demanding me to pay the difference?

Pretty much, plus a hefty penalty.

But the inpatriate regime is real, and the requirements aren't that tough: having lived outside Italy at least 2 years, become tax resident in Italy, intend to stay at least 2 years, and for non-Italians have a degree or been employed or self employed for at least 2 years before moving to Italy.

Best to let a professional handle the paperwork.

 

[JustAnotherNomad]

Is it possible to get an advance ruling to avoid surprises?

 

[Cloudbanck]

Haha, no! It is Italy we are talking about. Heck, even in Sweden it is hard to get an advanced ruling you can trust, just ask Linus Dunkers.

 

[OffshorePhantom]

But the inpatriate regime is real, and the requirements aren't that tough: having lived outside Italy at least 2 years, become tax resident in Italy, intend to stay at least 2 years, and for non-Italians have a degree or been employed or self employed for at least 2 years before moving to Italy.

I know some Italian friends who worked abroad and then come back to Italy with this incentive and it worked for them (even better if you move to the souther regions of Italy), but better watch out for all the requirements!