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Paying tax in an international school in Europe

Discussion in 'Teaching abroad' started by MrJoeBloggs4, Mar 9, 2019.

  1. MrJoeBloggs4

    MrJoeBloggs4 New commenter

    Hi! I've recently been offered a job at an international school in Italy. They've offered my salary and specified it is as a result of the tax agreement for residents in UK and Ireland. They have also told me I will get residency with the contract when I go to Italy. However, here is the part that confuses me... they told me I will not have to pay tax as it is my first year abroad. Apparently I will be paying taxes in England but the salary they have offered me is my net pay because of the 'free tax agreement'.

    Please can somebody shed some light on this for me? Will I really not be taxed? Or will the school be sorting the tax? How does it work?! Thanks in advance!
  2. 24hours

    24hours New commenter

    I’ve heard of this arrangement before in Italy. I think it has something to do with an EU ‘posted workers’ law.

    It essentially came about so cheap eastern European builders could work In Western Europe on an Eastern European salary

    I’d be more concerned about the residency aspect if it’s a no-deal brexit
  3. T0nyGT

    T0nyGT Lead commenter

    As far as I'm aware, you must be a tax resident in whichever country you spend the majority of your year in.

    I'm no expert on this, but I don't see how you could have a deal because you're a resident of the UK but also become a resident in Italy. Surely you're either a resident in one or the other. If you're a resident in both then wouldn't you pay tax in both?

    Definitely something you should consult a tax expert over. Perhaps Quora could help
  4. blue451

    blue451 Lead commenter

    There are old threads on here relating to this. And threads from teachers who were stung by it.
    Apparently you can/could do your two years 'tax free' but if you stay longer you then become liable for tax not just from that date but backdated too.
  5. ecair

    ecair New commenter

    You will need to decide whether you pay tax in Italy OR UK. If you don't pay Italian tax then the salary quoted will be tax free (minus some national insurance type payments) but you'll be responsible for paying UK tax on you Italian earnings.
  6. MrJoeBloggs4

    MrJoeBloggs4 New commenter

    Since posting this earlier, I've found a treaty sort of thing on the .gov website between just Italy and UK. It is from 1991 and specifies how the first 2 years abroad (from UK to Italy or vice versa) is tax free for certain people, including teachers. What @blue451 has said about backdated tax sounds interesting... I'll keep looking into that. UnfortunatelyI couldn't find the previous threads you mentioned though.
  7. 24hours

    24hours New commenter

    Also worth considering what happens after Brexit and whether this arrangement will be legal.

    Not sure it is now in all honesty but welcome to Italy
  8. MrJoeBloggs4

    MrJoeBloggs4 New commenter

    Unfortunately we arent to know what is happening after brexit yet... but this arrangement can't be illegal as it is an agreement which is signed by UK and Italy.
    At the moment it seems the main issue is that you will be expected to pay the tax back after 2 years is up, if you remain in the country.
    Thanks for your input everyone
  9. amysdad

    amysdad Established commenter

    If I were you I would check it carefully - you need guidance as to whether this is one of the agreements which will survive a no-deal Brexit or not. Also, the agreement you quoted precedes the introduction of the Euro, so again might not apply - get specific advice if you can.

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