I’m looking into the digital nomad visa for Italy and can’t find a clear answer to two questions. Am I required to pay taxes in Italy when working remotely for a foreign employer? And second — does time on the nomad visa later count toward the residency requirement for permanent residency (PR)? Has anyone dealt with this?
Tax residency in Italy starts after 183 days — with a digital nomad visa that’s almost inevitable after a year of living there. That means you pay Italian personal income tax on your worldwide income, including salary from a foreign employer. I asked a commercialista in Turin about the impatriati regime for new residents — it reduces the taxable base by 70%, but only if you actually become an Italian resident; you can’t apply the regime otherwise. As for permanent residence, time spent on any legal permesso counts toward it — this is the standard for all types of residence permits.
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Thanks — I didn’t even know about the impatriati; I’ll have to ask a commercialista (tax advisor). Is that reduced-base regime applied for all years, or only for the first couple of years after relocating?
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Only for five years; you can extend it later if you buy a home.
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