Archive: A demonstration of migrant workers | Photo: ANSA/ANGELO CARCONI
Archive: A demonstration of migrant workers | Photo: ANSA/ANGELO CARCONI

Foreign-born taxpayers in Italy have paid four billion euros in IRPEF personal income tax, according to the Venice-based Leone Moressa Foundation think tank.

The think tank on July 1 said that the data released by the Italian economy ministry based on 2020 individual income tax returns (compared to 2019) enabled it to analyze the impact of the immigrant population on the total of taxpayers in Italy.

Overall, there were 4.2 million foreign-born taxpayers in Italy. They declared €60.2 billion in revenues and paid €9 billion in IRPEF personal income tax, the think tank said.

Observing the trend from 2010 to 2019, the think tank noted a progressive increase both in the number of taxpayers born abroad (+27,2%) and in the volume of declared income (+31,5%).

Foreign-born taxpayers 10.2% of the total

The study said that taxpayers born aboard were 10.2% of the total, with an impact varying between 4.3% in the highest income bracket and 15.9% in the lowest.

Among foreign-born taxpayers, nearly half (47.7%) declared an annual income below 10,000 euros.

Among those born in Italy, that income bracket accounted only for 28.6% of taxpayers. The situation was very different also for revenues exceeding 25,000 euros: only 12.1% of those born abroad were in this bracket against 31.1% of Italian-born taxpayers.

Territorial distribution

Over half of foreign-born taxpayers lived in Lombardy, Emilia Romagna, Veneto and Lazio, on average representing 10.2% of the total, but the numbers increased in regions of the center-north, reaching the highest value in Trentino Alto Adige (16.3%).

However, the income gap between Italian and foreign-born taxpayers remained quite high, the think tank said. Overall, in Italy, a taxpayer born abroad declared €14,680, nearly €8,000 less than an Italian taxpayer. The gap exceeded €10,000 in six regions.

At a provincial level, the impact of foreign-born taxpayers peaked in Prato (23.4%). Among big cities, Milan registered an impact of 14.6%. Genoa and Florence also exceeded the national average. Overall, the female component accounted for 44.5%, with significantly higher peaks among countries of eastern Europe (Ukraine, Moldova, Poland) and Latin America (Peru, Brazil).

On average, each foreign-born taxpayer in 2020 declared €14,680 and paid €3,360 in IRPEF.

EU and western European countries in general presented significantly higher values, in line with Italian-born taxpayers.

By comparing the economy ministry's data with the number of workers for each nationality, foreign taxpayers were estimated to total 2.3 million. This made it possible to calculate the volume of income declared by foreign taxpayers (30.3 billion) and the volume of IRPEF paid (4 billion). The most represented community was from Romania with over 635,000 taxpayers, followed by Albania (162,000) and China (149,000).


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