Expat Community > Italy

coreyzw
Joined 2018
Posts: 2

Tax question

6 years ago

My wife and I are about to move to italy where a company is going to sponsor me for a visa. I would be a contractor for them and would like to understand better how taxation works. We will be living there for the 7 years to get full citizenship.

Hypothetical numbers
Income as a contractor would be 130k euro. I understand that Italy has a tax agreement with the USA but I dont completely understand how it works. Since it is over $100k, it would be the italian tax rate of 43%, but how does that apply to USA taxes? Also what about the social security? I read it could be about 10.5% as well?
So roughly my net income would be:
130000 - 69500 (53.5%) = 60500 euro?
Is this enough to live on in Italy? We would own our home and vehicle. It would be a very comfortable income in the USA but we dont have nearly the tax rate as Italy does.
Do we pay the USA taxes also? Or is the taxes we pay in Italy a credit to what we would typically pay in the USA?

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Expat Community > Italy

Tax question

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