How Does Marriage Affect Your Taxes in Italy

Tax in Italy is a bit cumbersome and the country is generally regarded as having a high tax wedge. When talking of tax and marriage in Italy, it seems to be on the regressive side when compared to other European countries like Britain and Germany. However, for married couple there is still a way for you to enjoy an extent of tax relief.

Before we discuss the impact of marriage on taxes in Italy, let us take a look the various tax rates imposed in Italy. On the face, the Italian tax is dependent on where an individual is fiscally located, the taxable income of the National Income tax is known as IRPEF.

Income Tax Due
0 – €15,0000 23%
15,001 – 28,000 €3450 + 27% of the excess of 15,000
28,001 – 55,000 €6950 + 38% of the excess of 28,000
55,001 – 75,000 €17220 + 41% of the excess of 55,000
over 75,000 €25420+ 43% of the excess of 75,000

Marriage does not affect the above listed tax rates, i.e. Married couples will pay the same tax rate as they would if they were both single.

Pros and Cons of Marriage on Taxes in Italy

In spite of the fact that there is no explicit provision of tax relief for couples or those in civil relationship, there are however some credits that is available for those in marriage relationship.

  • People with children are given credits
  • Non-working spouse are also given credit

The advantage above is not exclusive to those in marriage, dipendenti (employees) and other employees who have incomes in the range of 25,000 and 30,000 Euro are also given such credit.

In other words, tax credits such as those noted above are not specific to married couples alone as an employee who is not married can still earn relatively the same credit that is available for one who is married.

If we look at two people with the same range of income in Italy, the tax wedge for a worker with children may be lower than for a worker on the same income without children so married couples with children are better off in Italy tax wise than those without children.

Italy is part of the Organization for Economic Cooperation and Development (OECD) and has on OECD tax rate of 38.6% for a worker without children and an OECD tax rate of 26.6% for a married worker with children, as of 2016.

To summarize there is very little momentary gain of marriage in Italy.

Tax Forms in Italy

 In Italy, the following forms can be used to file your taxes:

  • Master instruction
  • One time certificate for Italian Equities
  • One Time master instruction / dividends at source
  • Letter of Indemnity from an Italian Customer
  • Domanda di Rimborso/Refund claim
  • Statement of fiscal authority
  • Self certification
  • Side declaration
  • Certificate of residence
  • Power of attorney
  • Letter of request to clearstream, and many others depending on your fiscal location.