'Contracting' in Italy

[xara]

Might do a short-term gig (6 months odd) in Italy.

I would be paid net however; they take care of taxes. It's some dubious fiddle to prevent me from being an employee for life.

Rate is quite a bit less than elsewhere, but the weather, food, general beauty should compensate somewhat.

Anyone done this kind of thing that can think of any non-obvious gotchas?

The tax year is concurrent with the calendar year. So hopefully if I then go and do a higher-paid contract elsewhere next year I won't have to declare or surrender tax back to Italy. Or perhaps I just have to be mindful of the 183 day ruling?

[TheFaQQer]

Have you read the guides on contracting in Italy?

IT Contracting in Italy - Money and Tax :: Contractor UK

IT Contracting in Italy - Living and Working :: Contractor UK

[BlasterBates]

The 183 day rule is separate from whether Italian sourced income should be taxed.

You get a temporary employment contract in Italy with an Italian company for 5 months. This would still be taxed even if you're not tax resident. Tax residency would mean you would liable for tax on worldwide income.

i.e. generally you are liable for tax on income sourced in that country.

There are complex rules which means it isn't always straightforward to determine. For example if you are working for a UK company and you are UK tax resident it is quite probable that you wouldn't be taxable.

Always be careful if you are using intermedieries, this could be viewed as "tax avoidance". i.e. using a UK agency to contract via an Italian co.

Best to take advice from an Italian accountant.