Im forming a US based LLC and doing business in Italy. What are my tax implications in Italy?
The US and Italy have a tax treaty which protects against double taxation for individuals who spend time and/or work in both countries. You will be liable for tax payments (with one exception I’ll outline later) only in the country in which you are resident, and residency is determined by a weighing of the following factors: 1) where you have a permanent house; 2) where you have your closest personal relationships and economic ties; 3) your normal location; 4) your nationality. Therefore, you could potentially live in Italy but still be considered a US resident for tax purposes, depending on the other factors. If you are collecting payment in the US and you are (I’m assuming) a US citizen, this would probably be the case, particularly since the Italian tax authorities would have no practical way of checking your income in a foreign country. The exception I referred to earlier is regarding the 84k you mentioned.
