{"id":5219,"date":"2021-02-27T15:19:29","date_gmt":"2021-02-27T15:19:29","guid":{"rendered":"https:\/\/theslowtourist.com\/theslow1\/?page_id=5219"},"modified":"2024-07-19T16:01:25","modified_gmt":"2024-07-19T16:01:25","slug":"taxes-for-expats","status":"publish","type":"post","link":"https:\/\/theslowtourist.com\/theslow1\/2021\/02\/27\/taxes-for-expats\/","title":{"rendered":"Taxes for Expats"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"5219\" class=\"elementor elementor-5219\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1a65fca4 elementor-section-full_width elementor-section-height-min-height elementor-section-items-stretch elementor-section-content-bottom elementor-section-height-default\" data-id=\"1a65fca4\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-58e84b58\" data-id=\"58e84b58\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-429573f elementor-widget elementor-widget-heading\" data-id=\"429573f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Taxes for Expats<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1dd95c18 elementor-widget elementor-widget-heading\" data-id=\"1dd95c18\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h6 class=\"elementor-heading-title elementor-size-default\">Information and links to help you understand and plan for Italian taxes. <\/h6>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-top-column elementor-element elementor-element-7ead92c3\" data-id=\"7ead92c3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-13d50135 elementor-widget elementor-widget-image\" data-id=\"13d50135\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"600\" height=\"600\" src=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/tax-icon.jpg\" class=\"attachment-medium_large size-medium_large wp-image-5122\" alt=\"\" srcset=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/tax-icon.jpg 600w, https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/tax-icon-300x300.jpg 300w, https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/tax-icon-150x150.jpg 150w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-top-column elementor-element elementor-element-794249e7\" data-id=\"794249e7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a5ac3c0 elementor-widget-mobile__width-initial animated-slow elementor-widget-tablet__width-initial elementor-invisible elementor-widget elementor-widget-spacer\" data-id=\"a5ac3c0\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;fadeInRight&quot;}\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-aca2fcb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"aca2fcb\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wider\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-410c4240\" data-id=\"410c4240\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7cbdf499 elementor-view-default elementor-position-block-start elementor-mobile-position-block-start elementor-widget elementor-widget-icon-box\" data-id=\"7cbdf499\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-icon-box-wrapper\">\n\n\t\t\t\t\t\t<div class=\"elementor-icon-box-icon\">\n\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/Flat-Tax-for-pensioners-coming-to-live-in-the-South-of-Italy-\u2013-10-years-at-7-\u2013-Italian-Tax.pdf\" target=\"_blank\" class=\"elementor-icon\" tabindex=\"-1\" aria-label=\"7% Tax Program\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-smile-beam\"><\/i>\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t<div class=\"elementor-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t<h2 class=\"elementor-icon-box-title\">\n\t\t\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/Flat-Tax-for-pensioners-coming-to-live-in-the-South-of-Italy-\u2013-10-years-at-7-\u2013-Italian-Tax.pdf\" target=\"_blank\" >\n\t\t\t\t\t\t\t7% Tax Program\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"elementor-icon-box-description\">\n\t\t\t\t\t\tThere is a program for expats moving to Italy who receive pension and other passive income to only pay a 7% tax. It lasts for a ten year period. No catches, this is an excellent program.  Click the Icon for the Document\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-264f229 elementor-view-default elementor-position-block-start elementor-mobile-position-block-start elementor-widget elementor-widget-icon-box\" data-id=\"264f229\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-icon-box-wrapper\">\n\n\t\t\t\t\t\t<div class=\"elementor-icon-box-icon\">\n\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/guidastranierieng.pdf\" target=\"_blank\" class=\"elementor-icon\" tabindex=\"-1\" aria-label=\"Expat guide for foreigners\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-store\"><\/i>\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t<div class=\"elementor-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t<h3 class=\"elementor-icon-box-title\">\n\t\t\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/guidastranierieng.pdf\" target=\"_blank\" >\n\t\t\t\t\t\t\tExpat guide for foreigners\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/h3>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"elementor-icon-box-description\">\n\t\t\t\t\t\tThis guide, while dated, contains a lot of information for what you need to do if you are going to want to do things like rent out your house and the registrations you would need to do. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-5132a081\" data-id=\"5132a081\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-67c67b6b elementor-view-default elementor-position-block-start elementor-mobile-position-block-start elementor-widget elementor-widget-icon-box\" data-id=\"67c67b6b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-icon-box-wrapper\">\n\n\t\t\t\t\t\t<div class=\"elementor-icon-box-icon\">\n\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/Income-Tax-KPMG-Global.pdf\" target=\"_blank\" class=\"elementor-icon\" tabindex=\"-1\" aria-label=\"Italian Tax Guide for Americans\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-info-circle\"><\/i>\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t<div class=\"elementor-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t<h2 class=\"elementor-icon-box-title\">\n\t\t\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/Income-Tax-KPMG-Global.pdf\" target=\"_blank\" >\n\t\t\t\t\t\t\tItalian Tax Guide for Americans\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"elementor-icon-box-description\">\n\t\t\t\t\t\tClick the Icon to open a document that gives a summary of taxes in Italy.  It mostly covers people who work in Italy. I cover the subjects of interest specifically to retired people in the rest of this post. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a1d6b76 elementor-view-default elementor-position-block-start elementor-mobile-position-block-start elementor-widget elementor-widget-icon-box\" data-id=\"a1d6b76\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-icon-box-wrapper\">\n\n\t\t\t\t\t\t<div class=\"elementor-icon-box-icon\">\n\t\t\t\t<a href=\"https:\/\/www.irs.gov\/businesses\/international-businesses\/italy-tax-treaty-documents\" target=\"_blank\" class=\"elementor-icon\" tabindex=\"-1\" aria-label=\"US Italy Tax Treaty\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fab fa-wpforms\"><\/i>\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t<div class=\"elementor-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t<h2 class=\"elementor-icon-box-title\">\n\t\t\t\t\t\t<a href=\"https:\/\/www.irs.gov\/businesses\/international-businesses\/italy-tax-treaty-documents\" target=\"_blank\" >\n\t\t\t\t\t\t\tUS Italy Tax Treaty\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"elementor-icon-box-description\">\n\t\t\t\t\t\tClick the Icon to open the IRS page containing the US-Italy Tax treaty. You will of course want the 1999 version and the Technical Explanation gives more in depth detail\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-23e9e397\" data-id=\"23e9e397\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-70a79c69 elementor-view-default elementor-position-block-start elementor-mobile-position-block-start elementor-widget elementor-widget-icon-box\" data-id=\"70a79c69\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-icon-box-wrapper\">\n\n\t\t\t\t\t\t<div class=\"elementor-icon-box-icon\">\n\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/EBOOK-Expat-Tax-Guide.pdf\" target=\"_blank\" class=\"elementor-icon\" tabindex=\"-1\" aria-label=\"Guide for U.S Tax Returns\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-globe\"><\/i>\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t<div class=\"elementor-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t<h2 class=\"elementor-icon-box-title\">\n\t\t\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/EBOOK-Expat-Tax-Guide.pdf\" target=\"_blank\" >\n\t\t\t\t\t\t\tGuide for U.S Tax Returns\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"elementor-icon-box-description\">\n\t\t\t\t\t\tClick the link to see an ebook guide about all the various in's and out's for filing your U.S, Tax returns while you are an expat in Italy. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f3b99ee elementor-view-default elementor-position-block-start elementor-mobile-position-block-start elementor-widget elementor-widget-icon-box\" data-id=\"f3b99ee\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-icon-box-wrapper\">\n\n\t\t\t\t\t\t<div class=\"elementor-icon-box-icon\">\n\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/IRS-Form-1116-Foreign-Tax-Credit-Instructions.pdf\" target=\"_blank\" class=\"elementor-icon\" tabindex=\"-1\" aria-label=\"IRS Foreign Tax Credit Form 1116\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-check-circle\"><\/i>\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t<div class=\"elementor-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t<h3 class=\"elementor-icon-box-title\">\n\t\t\t\t\t\t<a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/IRS-Form-1116-Foreign-Tax-Credit-Instructions.pdf\" target=\"_blank\" >\n\t\t\t\t\t\t\tIRS Foreign Tax Credit Form 1116\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/h3>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"elementor-icon-box-description\">\n\t\t\t\t\t\tThe foreign tax credit form is  the primary method to avoid double taxation for those receiving only pension, social security or other passive income. This document has full walkthroughs with examples. The section on Passive Income is in the second half.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-288e5f90 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"288e5f90\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-57be16b6\" data-id=\"57be16b6\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7dd8ff1e elementor-widget elementor-widget-heading\" data-id=\"7dd8ff1e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Who is this for?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7a969aa5 elementor-widget__width-initial elementor-absolute elementor-widget-tablet__width-initial elementor-widget elementor-widget-spacer\" data-id=\"7a969aa5\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;_position&quot;:&quot;absolute&quot;}\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5fea5c7e elementor-widget__width-initial elementor-absolute elementor-widget-mobile__width-initial elementor-widget elementor-widget-spacer\" data-id=\"5fea5c7e\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;_position&quot;:&quot;absolute&quot;}\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3af40bba elementor-widget elementor-widget-text-editor\" data-id=\"3af40bba\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Primarily this page and guides are for retired Americans who have arrived in Italy on Elective Residence Visa&#8217;s. Much of the information regarding who has to pay and the tax rates are applicable to most people however. As Americans, you are in the rather unique situation of having to pay taxes to both Italy and the Unites States.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6f3eeeb3 elementor-section-full_width elementor-reverse-tablet elementor-reverse-mobile elementor-section-height-default elementor-section-height-default\" data-id=\"6f3eeeb3\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-e712d5a\" data-id=\"e712d5a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1a3da48c elementor-widget elementor-widget-heading\" data-id=\"1a3da48c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Quick Summary<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d48cb4 elementor-widget elementor-widget-heading\" data-id=\"2d48cb4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Working In Italy<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7c8d0707 elementor-widget elementor-widget-text-editor\" data-id=\"7c8d0707\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Anyone who has earned income (income from working) will be taxed on the income they earn while working in Italy. This applies from day one, Euro one. Working in Italy also includes remote work. To be clear, even if you are working for a non Italian company and getting the money deposited into a non Italian bank account, you are considered <em>working in italy\u00a0<\/em>if you are physically in Italy while doing the work. This applies from day one, no matter what type of visa you are on. [Lets be reasonable though. No one is going to chase you down if you deal with work emails and tidy up some loose ends while in Italy on vacation.]\u00a0 There is such a thing as a <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/www.etiasvisa.com\/etias-news\/digital-nomad-visas-eu-countries\" target=\"_blank\" rel=\"noopener\">Digital Nomad Visa<\/a><\/span>, but Italy is not yet part of the handful of EU countries that offer this.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f7af148 elementor-widget elementor-widget-heading\" data-id=\"f7af148\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Retired<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d4958d7 elementor-widget elementor-widget-text-editor\" data-id=\"6d4958d7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The key figure to remember is: 183 days in a Calendar Year.\u00a0 Anyone who spends more than 183 days in Italy must pay tax on their <em>Worldwide <\/em>Income. Because things vary from region to region, I know there are some (mostly pre-Brexit Brits) who have resident cards, but spend less than 183 days in Italy. I only mention this because a resident card is not a trigger for tax liability. It is triggered by physical presence. (There are a couple other triggers, but they have to do with more obscure events like center of economic interest and other things that would apply only to people with much more complicated situations.)<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-16fcde1b\" data-id=\"16fcde1b\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c796ccc elementor-widget elementor-widget-spacer\" data-id=\"c796ccc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-55ba6ea8 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"55ba6ea8\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-54cdb2f9\" data-id=\"54cdb2f9\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f2f3bc4 elementor-widget elementor-widget-spacer\" data-id=\"f2f3bc4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-83e015c\" data-id=\"83e015c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-75ec82a elementor-widget elementor-widget-heading\" data-id=\"75ec82a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">A Tax Summary for Expats<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-16ee81fe elementor-widget elementor-widget-heading\" data-id=\"16ee81fe\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Types of Income<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6c88aac2 elementor-widget elementor-widget-text-editor\" data-id=\"6c88aac2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>When you are a Tax Resident (in Italy more than 183 days) you will pay tax to Italy on your worldwide income. Because this guide is targeted to expats who are retired and here on an Elective Residence visa, we will be discussing only Passive Income. (Income not coming from doing work.)<\/p><ol style=\"list-style-type: upper-alpha;\"><li>Pension Income: The primary source will your Social Security. This IS taxable by Italy. [If you are a dual citizen it is ONLY taxed by Italy].\u00a0<ul style=\"list-style-type: circle;\"><li>Social Security: This IS taxable by Italy as normal income. [If you are a dual citizen it is ONLY taxed by Italy].\u00a0<\/li><li>Government Pensions: Government sourced pensions [Federal or State. Examples would be Military, Teacher, Other Federal or State Employee.] are NOT taxed by Italy. They will not be listed on your Italian tax return\u00a0<\/li><li>Other Pensions: Taxed by Italy as normal income<\/li><\/ul><\/li><li>Interest: Taxed by Italy at a rate of 26%<\/li><li>Dividends: If you have substantial dividend income [More than 2% of the voting rights or 5% of the capital in an Italian owned company OR 20% of the voting rights or 25% of the capital of a non-Italian company you will want professional assistance) Otherwise, the Italy will tax Dividend income at 26%.\u00a0<\/li><li>Rental income: This is for people who keep and rent out their homes back in the U.S. for income. <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/taxsummaries.pwc.com\/italy\/individual\/income-determination\" target=\"_blank\" rel=\"noopener\">Useful guide here<\/a><\/span><ul style=\"list-style-type: circle;\"><li><p>In particular, if the income deriving from the rented real estate owned outside of Italy is subject to foreign rental income taxes in the foreign country, the same taxable base utilized in the foreign tax return is subject to taxation also in Italy. This income is then included in the Italian ordinary taxable base and taxed at progressive tax rates.<\/p><p>In this case, the taxpayer is entitled to claim for the foreign tax credit in the Italian tax return in order to avoid double taxation (if any). The said deduction is limited to the proportion of the Italian tax corresponding to the ratio between the taxable income produced abroad (and subject to double taxation) and total income. The foreign tax credit cannot, in any case, exceed the net Italian tax due on the foreign source income.<\/p><\/li><\/ul><\/li><li>IRA and 401k: Withdrawals from these accounts are treated as normal income by Italy. If you have withholding taken by the U.S. on the withdrawal you can claim that as a credit against Italian taxes\u00a0<\/li><li>Roth IRA: Italy does not recognize the tax free nature of a Roth IRA. You should therefore be expected to pay tax on the growth\/earnings of the account. Very good record keeping will be the key here. You will be paying tax on the growth even if you do not take distributions. Basically you are paying the tax when earned and none when you take withdrawals. <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/thunfinancial.com\/home\/american-expat-financial-advice-research-articles\/expat-roth-conversions-qna\/\" target=\"_blank\" rel=\"noopener\">Here is a link to a very good source on the subject.<\/a>\u00a0<\/span><\/li><li>Capital gains made as of January 2019 will be taxed applying a flat tax rate of 26% on the whole capital gains amount. The 2018 Italian Financial Bill introduced a final WHT at 26% both to tax resident and non-tax resident individuals for capital gains deriving from a qualified and a non-qualified shareholding (starting from 1 January 2019). Applies to both Qualified and Non-Qualified shares. Don&#8217;t worry if you don&#8217;t know what this is. The rate is the same and you likely have Qualified Shares.\u00a0\u00a0<\/li><li>Post tax accounts: Such as Savings or Money market. Not taxed by Italy. HOWEVER see the section on Wealth Tax!!<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4a509746 elementor-widget elementor-widget-heading\" data-id=\"4a509746\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Wealth Tax<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-15b8f2ec elementor-widget elementor-widget-text-editor\" data-id=\"15b8f2ec\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Tax residents in Italy will pay a tax on their Foreign Assets. This is for Real Property and for Financial Products.\u00a0<\/p><p><span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/taxing.it\/197-2\/\" target=\"_blank\" rel=\"noopener\">Italy Wealth Tax<\/a>\u00a0<span style=\"color: #000000;\">&#8212;\u00a0 Link \u00a0to \u00a0Web \u00a0Page <a href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/Italy-Wealth-Tax-.pdf\"><img decoding=\"async\" class=\"size-thumbnail wp-image-3027 alignleft\" src=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/permessodisoggiorno-150x150.png\" alt=\"\" width=\"150\" height=\"150\" \/><\/a><\/span><\/span><\/p><p>For Real Property the amount is .76% of the price you purchased the property for, or the market value. (Example if you have a house worth $250,000, the amount would be $1,900) &#8212;- <strong><span style=\"color: #993300; font-size: 14pt;\">The applicable tax rate, starting from FY 2024, is equal to 1.06% (up to FY 2023, the tax rate was 0.76%)<\/span><\/strong>.<\/p><p>For Financial Products the amount if .2% of the following types of assets.\u00a0<\/p><ul style=\"list-style-type: circle;\"><li data-wpview-marker=\"https%3A%2F%2Ftaxsummaries.pwc.com%2Fitaly%2Findividual%2Fincome-determination\">Equity investments in foreign companies (but only publicly traded shares, not shares in private companies);<\/li><li data-wpview-marker=\"https%3A%2F%2Ftaxsummaries.pwc.com%2Fitaly%2Findividual%2Fincome-determination\">Investments in government and corporate bonds;<\/li><li data-wpview-marker=\"https%3A%2F%2Ftaxsummaries.pwc.com%2Fitaly%2Findividual%2Fincome-determination\">Unit trusts, funds and certain types of with-profit insurance contracts;<\/li><li data-wpview-marker=\"https%3A%2F%2Ftaxsummaries.pwc.com%2Fitaly%2Findividual%2Fincome-determination\">Foreign currency contracts;<\/li><li data-wpview-marker=\"https%3A%2F%2Ftaxsummaries.pwc.com%2Fitaly%2Findividual%2Fincome-determination\">Precious metals;<\/li><li data-wpview-marker=\"https%3A%2F%2Ftaxsummaries.pwc.com%2Fitaly%2Findividual%2Fincome-determination\">Derivative contracts.<\/li><li data-wpview-marker=\"https%3A%2F%2Ftaxsummaries.pwc.com%2Fitaly%2Findividual%2Fincome-determination\">A recent change introduced by the Italian Budget Law for FY 2024 increases the IVAFE rate to 0.4% if the financial assets are held in states or territories deemed with privileged taxation identified by the Ministerial Decree of the Ministry of Economy and Finance of 4 May 1999 and subsequent amendments. (Unlikely for most people)<\/li><\/ul><p>Common banking accounts are taxed at a flat amount of 34.20Euro<\/p><p>Occupational Pension Accounts are exempt. (This would seem to include IRA&#8217;s)<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5398087e elementor-widget elementor-widget-heading\" data-id=\"5398087e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Seven Percent Tax Program<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-76e255f7 elementor-widget elementor-widget-text-editor\" data-id=\"76e255f7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>What does the special tax relief consist of?<\/h2><p>A 7% flat tax on all income for all pensioners (regardless of nationality) who:<\/p><ul style=\"list-style-type: circle;\"><li>Have been tax resident outside Italy for at least five (5) years prior to the year in which they become Italian tax resident;<\/li><li>Transfer their tax-residence to the South of Italy, to a municipality (comune) with a population of fewer than 20,000 inhabitants<\/li><li>Have previously been resident with which Italy has in place arrangements for administrative co-operation (which includes any EU member state and a large number of other countries).<\/li><\/ul><p>The regions are: Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, Puglia<\/p><p>Additionally people who use this program are exempt from the wealth taxes. The program will last for ten years.\u00a0<span style=\"color: #993300;\"><a style=\"letter-spacing: 0px; background-color: #ffffff; color: #993300;\" href=\"https:\/\/theslowtourist.com\/theslow1\/wp-content\/uploads\/Flat-Tax-for-pensioners-coming-to-live-in-the-South-of-Italy-%E2%80%93-10-years-at-7-%E2%80%93-Italian-Tax.pdf?6bfec1&amp;6bfec1\" target=\"_blank\" rel=\"noopener\">CLICK FOR PDF<\/a><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Taxes for Expats Information and links to help you understand and plan for Italian taxes. 7% Tax Program There is a program for expats moving to Italy who receive pension and other passive income to only pay a 7% tax. It lasts for a ten year period. No catches, this is an excellent program. Click [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5319,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"elementor_header_footer","format":"standard","meta":{"editor_plus_copied_stylings":"{}","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3,84,335],"tags":[154],"class_list":["post-5219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-perpetual-expat","category-documents-and-registrations","category-taxes","tag-taxes"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/posts\/5219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/comments?post=5219"}],"version-history":[{"count":115,"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/posts\/5219\/revisions"}],"predecessor-version":[{"id":11419,"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/posts\/5219\/revisions\/11419"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/media\/5319"}],"wp:attachment":[{"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/media?parent=5219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/categories?post=5219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theslowtourist.com\/theslow1\/wp-json\/wp\/v2\/tags?post=5219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}