# Accountant for person working for American company and living in Italy



## tftjr (May 16, 2012)

Hi All,
I currently work for an Italian company with a contratto indeterminato but I may change to work for an American company. 

I'm looking for advice from an accountant/financial advisor to help understand the tax rules and regulations to work for an American company while living in Italy. 

I need someone that understands both sets of rules; the Italian and American. The pro & cons for working for an America company and the pros & cons of staying with the Italian company if all things are equal. 

For example, my assumption is that if I get paid the same I will automatically take more money home due to the lower income tax rate in the US but this is an assumption. On the flip side, my assumption is that if I leave my contratto indeterminato I will lose my ability to finance a house, car, etc. in Italy.

Please let me know if anyone in the expat community can help or knows someone/somewhere to get the info.
Thanks,
Terry


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## Bevdeforges (Nov 16, 2007)

Unless you're working for the US government or military, there's really no difference in how you are taxed, regardless of the home base of your employer. Working for an Italian company, you are still obligated to file US tax returns. See Publication 54 for the gory details. Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad

And, the fact of being resident in Italy while working (at all - for any employer) means you should be paying Italian taxes like anyone else working in Italy.

There is a tax treaty between the US and Italy that defines who gets to tax what, but generally speaking, you pay your primary taxes to Italy (as an Italian resident) and then use either the Foreign Earned Income Exclusion or the Foreign Tax Credit to protect your income from double taxation.
Cheers,
Bev


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## accbgb (Sep 23, 2009)

tftjr - where are you located in Italy? Anywhere near Roma?


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## tftjr (May 16, 2012)

accbgb said:


> tftjr - where are you located in Italy? Anywhere near Roma?


Cervia (Ravenna)


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