work contract Italy or UK?
Aug 17th 2012, 6:35 pm
#1
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Joined: Aug 2012
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work contract Italy or UK?
I am a US citizen married to an Italian Citizen and we are living in the USA for more than 10 years. I work for a multinational and are been offered to move to Europe. Obviously, due to my wife's family conections to Italy, there is a strong preference to work out of Italy although I have a choice to live in Spain, UK or Ialy
My question may be a complex one, but initially, I am wondering what is more advangeous from a contract standpoint. A contract based in the UK or in Italy. From my limited knowledge, Italy has higher taxes than UK but on the other hand does it have more social protections? I am not even sure of the immigration part, but I am assuming that is a non-issue considering my wife is Italian.
I realize this is a very open question but any input that can be provided would be greatly appreciated. I am trying to wrap my head around this so I can influence as much as possible during he contract negotiations
My question may be a complex one, but initially, I am wondering what is more advangeous from a contract standpoint. A contract based in the UK or in Italy. From my limited knowledge, Italy has higher taxes than UK but on the other hand does it have more social protections? I am not even sure of the immigration part, but I am assuming that is a non-issue considering my wife is Italian.
I realize this is a very open question but any input that can be provided would be greatly appreciated. I am trying to wrap my head around this so I can influence as much as possible during he contract negotiations
Aug 20th 2012, 3:50 pm
#2
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Joined: Aug 2012
Location: Milan
Posts: 2
Re: work contract Italy or UK?
Hi gchain
I do not know a lot about this, but I can tell you from my own experience that the tax you pay is based on where you are resident, not where you are paid.
I am from the UK and on a 2 year secondment in Italy. I am paid in GBP in the UK. However, from a tax perspective I am resident in Italy. Therefore I need to declare all income - personal (from any properties etc) and employment - in Italy.
In Italy I am liable for tax on income earned in Italy and overseas. My employment income is classed as being earned in Italy even though it is paid in the UK. In the UK I am liable for tax on income earned in the UK.
There may be other benefits to having a UK contract and working in Italy, but I do not think there will be any significant tax saving from it
Hope that helps
Munka
I do not know a lot about this, but I can tell you from my own experience that the tax you pay is based on where you are resident, not where you are paid.
I am from the UK and on a 2 year secondment in Italy. I am paid in GBP in the UK. However, from a tax perspective I am resident in Italy. Therefore I need to declare all income - personal (from any properties etc) and employment - in Italy.
In Italy I am liable for tax on income earned in Italy and overseas. My employment income is classed as being earned in Italy even though it is paid in the UK. In the UK I am liable for tax on income earned in the UK.
There may be other benefits to having a UK contract and working in Italy, but I do not think there will be any significant tax saving from it
Hope that helps
Munka
Aug 21st 2012, 11:36 am
#3
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Joined: Apr 2009
Location: Ferrara
Posts: 2,497
Re: work contract Italy or UK?
Hi.
In theory they should be the same rules, both being EU countries. However I wouldn't consider it a "non-issue" in either place. As a non-EU citizen you will need to sort out a permit.
Aayway do everything in the UK and only come to Italy for your holidays, preferably with wife's family.
Cheers
