Ciao!I'm an American and am

marieoncapecod Image
06/29/2015 - 19:07

Ciao!I'm an American and am retiring in 2016. I'd like to live in Italy indefinitey, and maybe buy an apartment there. I understand that there are two types of visas, the Elective Residence Visa and the Retirement Visa. Does anyone know whether if I have to pay Italian or American taxes on my pension while living there? Does the taxation on my pension depend on the type of visa that I have? Which of the two kinds of visas would be more beneficial to me from a tax perspective?I've looked online at the Italian Ministry of the Interior and have found incomplete information and links that are down. I've also looked at the Italian Consulate's web page, but I can't seem to get the specific answers that I need in order to proceed. Does anyone know the answers to these questions or have any suggestions as to how to get the answers without my having to goi to the Consulate in person (I live far from the nearest Italian Consulate).Many thanks!

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Your problems are compounded with the IRS  - I would find out first what your situation would be in the US, and whether you can even have your pension paid in Italy.  A retiremnet visa would allow you to receive your pension net of US tax and therefore technically have no tax obligation in Italy.  However, all this could change and does change frequently.   Whether it would make you free from IVIE I dont know - probably not, in which case you would be liable to 1% annually on your worldwide patrimony in ITaly