# UK resident working as a contractor in Italy - beg for help!



## eng (May 16, 2014)

I am a UK resident, and have recently received a 9 month (potential extension to 12) contract offer in Milan, for a UK company (with a branch in Italy). The contract will start some time in mid November. I will have a contract directly with my headhunt agency (UK company).

I wonder if anyone could give me some advise or pointers:

1 - if I should work in Italy as a self employed person, or via a UK limited company (that I set up) to keep my tax to a minimum? 

2 - it is very likely that I will breach the 183-day limit in 2016. Would I automatically become an italian tax resident? Would it be possible to remain as a non-italian tax resident if I keep my current apartment in the UK as a main residence while also renting in Italy, and show that my main interests are still outside of Italy? 

3 - is the 28% social security contribution compulsory? could I purchase private health insurance instead, or continue to contribute to national insurance in the UK to avoid paying Italy's social security? 

4 - regarding my obligations once I start working there, such as registration, apply for a Fiscal code, etc… what’s the complete list of legal things I must prepare for?


Many thanks!!


----------



## accbgb (Sep 23, 2009)

Many answers here: https://www.gov.uk/guidance/living-in-italy


----------



## NickZ (Jun 26, 2009)

eng said:


> 2 - it is very likely that I will breach the 183-day limit in 2016. Would I automatically become an italian tax resident? Would it be possible to remain as a non-italian tax resident if I keep my current apartment in the UK as a main residence while also renting in Italy, and show that my main interests are still outside of Italy?
> !


Tax residence would only relate to your world wide income. Employment income is almost always taxed in the country of the work.


----------



## eng (May 16, 2014)

accbgb said:


> Many answers here: https://www.gov.uk/guidance/living-in-italy


Many thanks for this! Its a good start!


----------



## eng (May 16, 2014)

NickZ said:


> Tax residence would only relate to your world wide income. Employment income is almost always taxed in the country of the work.


Does that mean there's nothing I can do to avoid entering the Italian tax system, and will have to get an Italian account...?


----------



## NickZ (Jun 26, 2009)

If you work in Italy you pay income tax in Italy.

There is likely a social security agreement between the UK and Italy. That might give you relief from those costs. But you need to check the agreement.


----------

