Retire to Italy: our ultimate guide
After a whole life of work you can finally make your dream life in Italy come true.
From January 1st 2019 you can also benefit of a great tax incentive if you are a pensioner moving to Italy.
From January 1st 2019 you can also benefit of a great tax incentive if you are a pensioner moving to Italy.
Who can qualify?
Italian 2019 budget law introduced a new 7% flat tax on foreign income for individuals who move to Italy starting from 2019. In order to qualify, you need:
The tax benefit lasts for 5 years.
- Have a foreign pension
- Have been a resident of a foreign country in the previous 5 years
- Move to Italy
The tax benefit lasts for 5 years.
Where should I move to qualify?
You must move to any municipality with less than 20,000 inhabitants located in any of the following regions:
- Abruzzo
- Molise
- Apulia
- Campania
- Basilicata
- Calabria
- Sicily
- Sardinia
How much taxes do I pay?
You pay only a 7% flat tax on any source of foreign income including pension, property income, capital gains
Assume that you are a British national moving to Italy and you have pension income of € 20,000 and you realize a capital gain on your stocks of € 30,000.
In such case you pay only € 3,500 of taxes for both sources of income.
The 7% flat tax does not cover any income made in Italy.
Assume that you are a British national moving to Italy and you have pension income of € 20,000 and you realize a capital gain on your stocks of € 30,000.
In such case you pay only € 3,500 of taxes for both sources of income.
The 7% flat tax does not cover any income made in Italy.
What about wealth tax?
You are not required to disclose your foreign assets nor pay any wealth tax on your foreign real estate and financial assets for 5 years.
What do I have to do?
All you have to do is move to Italy and file your taxes opting for the new flat tax regime when you file your taxes.
Remember that you must pay the tax liability in full, otherwise you lose the option!
Remember that you must pay the tax liability in full, otherwise you lose the option!
Why is this convenient?
Italy is a high tax jurisdiction; once you move here you are liable to pay taxes on your worldwide income as well as pay the infamous wealth tax on your foreign assets.
This regime allows you to pay a flat 7% tax on every source of foreign income as well as not paying any wealth tax.
Can it get any better?
This regime allows you to pay a flat 7% tax on every source of foreign income as well as not paying any wealth tax.
Can it get any better?
Can I benefit of the Universal Healthcare system?
Once you become resident in Italy you can benefit of the Universal Healthcare system; remember that you pay your taxes in Italy!
How can we help you?
- Assess your eligibility for the program
- Find the appropriate accomodation in Italy
- Set up a local bank account
- Tax planning on your income and assets
- Annual tax return filing and tax compliance
- Tax payment support
For more info, check also our articles about us pensions taxed in Italy, our video "tips for reading double tax treaties", or check also our video below.
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