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There are already 2 similar questions but my case is a bit different so I believe it requires different answers.

Other questions:
Taxes for citizen of EU country #1 living in EU country #2 and working from home for non-EU country #3?

Is it possible to work in a country and pay taxes in another within the EU?

My case:
I'm an Italian resident and I will be working as an Italian contractor, from Italy, for a company in Czech Republic. So far so good, I just pay taxes regularly in Italy, but I would like to receive my compensation on my bank account in Czech Republic (a lot more advantageous for me) and only transfer to my Italian bank account the money needed to pay the taxes.

From my understanding, since I will be working from and residing in Italy, I will pay my taxes there, but my income (or at least substantial part) will be received and mostly held in Czech Republic. Does this entail any complications? I would be declaring this foreign bank account to the respective Italian authorities so theoretically they should be able to coordinate with the Czech counterpart.

I could receive the money on my Italian bank account and there would be no complications, I would just like to use my Czech one since it's better for me. In case I transfer money from Italy to Czech Republic I'd have to pay quite a lot of fees, but I'm trying to consider if it's worth it.

Thanks in advance to anyone who could help

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The locations of your bank accounts should not make a difference with regards to what taxes you personally (or any that businesses you operate) are required to pay. Possibly listing foreign bank accounts may result in more scrutiny when you file your tax declarations.

Some banks may require that you have residency and/or a local mail address to open and maintain an account though.

I would be declaring this foreign bank account to the respective Italian authorities so theoretically they should be able to coordinate with the Czech counterpart.

Simplified what happens is the opposite actually. The Common Reporting Standard (CRS) will require that your Czech bank reports the accounts of foreign account holders like yourself to the Czech tax authorities, who will then forward that information to their Italian counterparts.

In case I transfer money from Italy to Czech Republic I'd have to pay quite a lot of fees

When you transfer money from Italy to your Czech account do so in euros, not in Czech koruna and that should solve your problem.

Both Czechia and Italy are EU member states. When you make a cross-border payment in euros within the EU, your bank can't charge you more than it would for an equivalent national transaction in euros. Even banks based in EU countries outside the euro area must apply this rule. (source: https://europa.eu/youreurope/citizens/consumers/financial-products-and-services/payments-transfers-cheques/index_en.htm)

Possibly you need to add a foreign currency account in euro such as this or this to your Czech account to better receive transfers in euros.

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  • My German experience with accounts in foreign countries is that in practice, burocracy increases (i.e. other, less common forms to fill in, no always clear what to fill in where - even tax officers may take a while to find out "where that input went since last year's form"). Other than that, in my experience there are no problems (provided you choose your Czech bank so don't have show up in person every so often...) – cbeleites May 27 at 17:45
  • Thank you for all the information. I already have a Czech bank account so maintaining it won't be a problem. I did a transfer in the past but I converted it directly instead of sending euros, that's why there were fees applied... I will consult my bank to make sure they have all they need for the reporting and to open the euro account as well – Marcus May 27 at 23:03

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