Hi folks, does anyone have experience of this tax incentive for foreign buyers? http://www.mondaq.com/italy/x/780266/retirement+superannuation+plans+pensions+schemes/New+Italian+Tax+Regime+For+Foreign+Retired+PeopleIf it's as good as it looks, thi
Hi folks,I have just discovered the 'Elective Residence Visa'. It looks like I meet the conditions for obtaining one. I have two questions:1 How many times can you renew a 'permessi di soggiorno'?
Hi folks,I'm doing my due diligence on becoming an Italian resident, and have received an estimate of my tax liability.Wow! In the UK, I'd pay 16.61% of my gross income to the Revenue. In Italy, I'd pay 31%.
Hi LL,I looked at this site before contacting the accountant who did my tax estimate.I read the exemptions as being like the personal allowance in the UK, and took €4800 as being the appropriate deduction for me. However, my accountant told me that there is no personal allowance.Maybe the figures given are 'total income' amounts, meaning that if your income doesn't exceed these figures there is nothing to pay. But possibly their is an error in the translation from Italian.Even Spain gives you a modest allowance !On a different note. What do you know about Vigneverde, Agents in Casoli? I've looked at their website http://www.vigneverde.comJames
Buongiorno Joy, Flower Fairy, Large Lewis, Gala...Now that's an idea. A commune. I'll do the 'wine run' :)I don't believe for a second that any of the EU countries will prevent non - EU nationals from buying or renting property. That's political scare-mongering. The Brits, in particular, are for too important a market.The sun's up in Bangkok. Time for a swim :)Happy decision-making to everyone.James
Flower Fairy,Another thought :)How about doing an extended house-sitting. Look at http://www.trustedhousesitters.comYou can join on the $8.25 per month plan and see everything available in Italy.Good luck,James
Hi Flower Fairy,Love your name :)Here's a thought. Why don't you rent? That way, you keep your capital liquid. I'm sure you could find somewhere for under €500 per month.Best wishes,James
Muy buenos Gala,I agree entirely.I've lived in both France and Spain, restored houses, paid taxes - :( - and had small businesses.I would advice anyone to tango very slowly before entering the tax regime of any of these countries.I've looked at Portugal too. Tax is horrible and if you have an account in Gib, Jersey, or the Isle of Man, you are a criminal and taxed at 35%. The fact that they all have exchange of information agreements with the EU is irrelevant. Crazy!The more I look at relocating, the more I'm drawn to renting. The resale market in all of these countries is often very, very slow. They do not have the relatively liquid markets that you find in the UK.Italy is full of gorgeous stone houses for a reason: the market is extremely limited. As you get older, you have to factor in the illiquidity problem when it comes to your estate having to settle UK inheritance tax. HMRC wants the tax, irrespective of whether your property has been sold.Much though my heart lies in the Med, I'm now looking at the Western Isles, Scotland. Or maybe I'll stay in Thailand and have an extended annual stay to recharge my need for jamon y aceite :)James
Hi Gala,Thank you for your thoughts. Sounds like you have found a perfect balance.Awesome food in the north of España. Pinchos a-go-go :)I lived in Medina Sidonia, Cadiz, for 7 years and loved it. However, the Spanish tax system is equally onerous.I was in Mallorca last year and discovered that annuity income is taxed twice: not only is the income taxed under IRPF, but also the capital under Patrimonio.Even worse, Hacienda decide the value of your annuity, based on a government capitalisation rate. I believe it's currently 3%. Crazy! And taxes are going to get worse given the current political situation. And then there's Modelo 720. If these countries had friendlier fiscal regimes, they could draw thousands of people to live there. I don't understand their rationale.Anyway, no rush. Slowly, slowly ... :)James
Lewis,Do I read your post correctly that non-residents cannot stay for longer than 90 days at a time, and never exceeding 183 in total?As an EU citizen, I thought you could stay for as long as you wanted.James
Ciao Joy,I think I've come to the same conclusion.The tax is much higher in Itay. I'm single and basically qualify for no meaningful deductions.Energy prices and insurance are also higher.Sadly, because of Italy's terrible debt, taxes can only go up.I've paid tax in Spain. It's the same story, and going to get worse there too.Sunshine and lovely old stone buildings come at a 'premium' :(Think I'll do house-sits or Air BnB to satify my Mediterranean needs.Best wishes,James
You can find house sits on www.trustedhousesitters.com Great site. There are others as well.There is no shortage of houses for sale, and that will always be the case.Slowly, slowly ... :)
Hi Joy,If you spend less than 183 days in Italy you are not a tax resident.I have some pension income which is taxed at source in the UK.If I become an Italian resident, this tax would be credited against my Italian tax bill.For the moment, I've decided to hold fire on my Italian 'project'.Brexit, and the poor exchange rate, mean it's not a good time to be taking decisions like this.James James
Comments posted
Hi LL,I looked at this site before contacting the accountant who did my tax estimate.I read the exemptions as being like the personal allowance in the UK, and took €4800 as being the appropriate deduction for me. However, my accountant told me that there is no personal allowance.Maybe the figures given are 'total income' amounts, meaning that if your income doesn't exceed these figures there is nothing to pay. But possibly their is an error in the translation from Italian.Even Spain gives you a modest allowance !On a different note. What do you know about Vigneverde, Agents in Casoli? I've looked at their website http://www.vigneverde.comJames
Buongiorno Joy, Flower Fairy, Large Lewis, Gala...Now that's an idea. A commune. I'll do the 'wine run' :)I don't believe for a second that any of the EU countries will prevent non - EU nationals from buying or renting property. That's political scare-mongering. The Brits, in particular, are for too important a market.The sun's up in Bangkok. Time for a swim :)Happy decision-making to everyone.James
Flower Fairy,Another thought :)How about doing an extended house-sitting. Look at http://www.trustedhousesitters.comYou can join on the $8.25 per month plan and see everything available in Italy.Good luck,James
Hi Flower Fairy,Love your name :)Here's a thought. Why don't you rent? That way, you keep your capital liquid. I'm sure you could find somewhere for under €500 per month.Best wishes,James
Muy buenos Gala,I agree entirely.I've lived in both France and Spain, restored houses, paid taxes - :( - and had small businesses.I would advice anyone to tango very slowly before entering the tax regime of any of these countries.I've looked at Portugal too. Tax is horrible and if you have an account in Gib, Jersey, or the Isle of Man, you are a criminal and taxed at 35%. The fact that they all have exchange of information agreements with the EU is irrelevant. Crazy!The more I look at relocating, the more I'm drawn to renting. The resale market in all of these countries is often very, very slow. They do not have the relatively liquid markets that you find in the UK.Italy is full of gorgeous stone houses for a reason: the market is extremely limited. As you get older, you have to factor in the illiquidity problem when it comes to your estate having to settle UK inheritance tax. HMRC wants the tax, irrespective of whether your property has been sold.Much though my heart lies in the Med, I'm now looking at the Western Isles, Scotland. Or maybe I'll stay in Thailand and have an extended annual stay to recharge my need for jamon y aceite :)James
Hi Gala,Thank you for your thoughts. Sounds like you have found a perfect balance.Awesome food in the north of España. Pinchos a-go-go :)I lived in Medina Sidonia, Cadiz, for 7 years and loved it. However, the Spanish tax system is equally onerous.I was in Mallorca last year and discovered that annuity income is taxed twice: not only is the income taxed under IRPF, but also the capital under Patrimonio.Even worse, Hacienda decide the value of your annuity, based on a government capitalisation rate. I believe it's currently 3%. Crazy! And taxes are going to get worse given the current political situation. And then there's Modelo 720. If these countries had friendlier fiscal regimes, they could draw thousands of people to live there. I don't understand their rationale.Anyway, no rush. Slowly, slowly ... :)James
Lewis,Do I read your post correctly that non-residents cannot stay for longer than 90 days at a time, and never exceeding 183 in total?As an EU citizen, I thought you could stay for as long as you wanted.James
Ciao Joy,I think I've come to the same conclusion.The tax is much higher in Itay. I'm single and basically qualify for no meaningful deductions.Energy prices and insurance are also higher.Sadly, because of Italy's terrible debt, taxes can only go up.I've paid tax in Spain. It's the same story, and going to get worse there too.Sunshine and lovely old stone buildings come at a 'premium' :(Think I'll do house-sits or Air BnB to satify my Mediterranean needs.Best wishes,James
You can find house sits on www.trustedhousesitters.com Great site. There are others as well.There is no shortage of houses for sale, and that will always be the case.Slowly, slowly ... :)
Hi Joy,If you spend less than 183 days in Italy you are not a tax resident.I have some pension income which is taxed at source in the UK.If I become an Italian resident, this tax would be credited against my Italian tax bill.For the moment, I've decided to hold fire on my Italian 'project'.Brexit, and the poor exchange rate, mean it's not a good time to be taking decisions like this.James James