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I'm an Italian citizen, looking to move to Czech Republic; I'm going to work from home for a Turkish company.

Who do I pay taxes to, and what kind of taxes? Also, when do I start reporting what I earn?

I'm moving in a couple of weeks, and starting to work as soon as I move.

Any help will be greatly appreciated.

Thanks!

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  • I think this is well on-topic here, but have a look round Expatriates to see if they've got any useful general resources.
    – AakashM
    Commented Feb 4, 2016 at 8:59

2 Answers 2

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You will almost certainly be paying taxes in Czech Republic, short of being American of Eritrean, citizenship has little to no bearing on tax.

If you are working from home, you will probably be a contractor. In Romania you would work through either an SRL or you would set up a PFA. Essentially a limited company or a sole trader. You will need to find the Czech equivalents.

I would advise finding a small business accountant. They will be able to advise what is the most cost effective solution, in some countries (like my one) you can save considerable amounts of tax by working through a company.

There is a link with some information.

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There are just too many variables here... Will you legally be considered a permanent resident from the moment you move? Will you work from home as a contractor or as an employee? Those are not questions you can answer yourself, they really depend on your circumstances and how the tax authorities will look at them. I strongly encourage you to speak to an advisor.

Very generally spoken, at your place of residence you pay taxes for your worldwide income, at the place of your work base (which is not clear if this really would be Turkey) you pay taxes on the income generated there. If it's one and the same country, it's simple. If not, then theoretically you pay twice. However, most countries have double taxation treaties to avoid just that. This usually works so that the taxes paid abroad (in Turkey) would be deducted from your tax debt at your place of residence.

But you might want to read the treaty to be sure how this would be in your specific case (all treaties are publicly available), and you should really consider speaking to a professional.

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    Typically you are a permanent resident and tax resident from the moment you move if you stay long enough afterwards. How much you pay in the country where you are tax resident very much depends on the country, with huge differences.
    – gnasher729
    Commented Jan 5, 2016 at 15:09

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