# Tax question: Working remotely from Italy



## Lindssm

I'm hoping for a bit of help with a tax question I have. I'm a US citizen, but have lived and worked in Italy for years. I currently have a Permesso for work reasons. I have an Italian fiance and so I'm not worried about my permit or being able to stay as I'll convert to a Permesso for family once we're married. However, I've been offered a job working from home from a US company, but don't know how that would work with taxes. Is it possible to have a remote job, pay taxes in the States and not have to pay taxes in Italy as well? What would be the obstacles to accepting a job like this? Thanks for any help! I can't find much information on this subject online!


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## phoward2000

Hi Lindssm.
I am an American who worked remotely in Switzerland (I am moving to Verona area in Sept). It is no problem to work remotely from another country, pay US taxes but you still need to file Italian taxes. Whether or not you will need to pay more in Italy depends on the amount you earn, the US taxes you paid and the Italian tax rate. 

I do recommend hiring an experienced US tax preparer who resides in Italy to help with both. I found the cost of the service is far less than what they helped me save on my taxes (admittedly, I am terrible at preparing my own!). 

Good luck!
Patty


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## accbgb

As a US citizen, you must file and pay taxes on your worldwide income. As an Italian resident, you must pay taxes on your income earned while working in Italy (regardless of whether the work product is in Italy or in the US/anywhere else).

As I understand it, you can have your US employer deduct and pay all the usual taxes and then, when you file your Italian tax return you will receive credit for the amount already paid to the US. Alternatively, you can pay taxes first to Italy and then receive a credit on your US return. No matter which route you take, I think you can be pretty certain that the total tax bite will be higher than it would be if you were residing in the US and performing the same work for the same pay.

You will have to make certain choices regarding whether to participate in the Italian social security system or the US. Some info here: https://www.ssa.gov/international/Agreement_Pamphlets/italy.html

And, yes, get help with both your US and your Italian taxes.


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## Bevdeforges

Be careful with this approach. Normally, you are considered to be working in the country where you are physically present while doing the work - and you don't get to choose which country you pay your taxes to. If you are resident in a country (say, Italy) and working in (or "from) there, then your primary tax obligation is to your country of residence.

As a US citizen and taxpayer, you have the Foreign Earned Income Exclusion and/or the Foreign Tax Credit available to you to claim back any US income tax your employer is withholding from your paycheck. But as a resident of Italy, you should be paying income taxes and social insurances in Italy.

We have an Expat Tax section here that might give you a bit more information: Expat Tax - Expat Forum For People Moving Overseas And Living Abroad
And you should definitely consulate IRS publication 54 for overseas taxpayers, in which they explain the FEIE and FTC and how they apply to US expats.

One small caveat: if your US employer is withholding state income taxes, you may have difficulty claiming back any of those taxes withheld. Many states do not recognize the FEIE - and in fact, if you are resident in a foreign country, you don't normally have a state of residence back in the US. 
Cheers,
Bev


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