Question about Italian taxes? Here's the answer.
This week, meet an Italian tax expert, find the support you need to make your life in Italy a reality, celebrate the iconic Topolino, and more.
DIY a move to Italy or seek help?
DIY projects have a special place in my heart. Holiday crafting, mending a torn shirt, installing a closet system? Give me 10 minutes with YouTube and a quick trip to my local hardware store and I’m all in.
Even though I’m pretty confident in my ability to go it alone, I think I’ve finally met my match: the Italian citizenship application.
When I first commenced this journey, I did my due diligence so I knew the nature of the challenge ahead. Still, I felt like I could do it. Then I ran head first into a brick wall when attempting to obtain my grandfather’s birth certificate from his small comune in Abruzzo. Unanswered emails and letters were followed by fruitless phone calls, and the clock was ticking down to my consulate appointment. I finally realized that I needed help.
Hiring a service to secure this vital document made the process so much easier and reduced my stress level.
Moving forward, it’s obvious that my DIY days are numbered. The further I go down the path to Italy, the more I realize the need for help (or at least support), and there’s no shame in that. It can be a tough process, but it should also be enjoyable.
If you’re wondering where to find support, checking in with Italy Per Te and Smart Move Italy every week is a great start. Here you’ll find encouragement, resources, and helpful information to help make your life in Italy a reality.
When it comes to taxes in Italy….”It depends.” 🤷 ❓ 💴
The decision to move to Italy could be one of the most exciting you’ll ever make. Like dominoes lined up on a kitchen table, this decision also sparks a chain reaction that leads to a myriad of other questions. Where exactly will you live? How will you be able to stay? When is the best time to launch this new plan? What does this mean for my tax situation?
The answer to this last question is a resounding, “It depends.” Perhaps this isn’t the answer you want, but sometimes reality bites.
Wondering if your pension or social security is taxable in Italy? Guess what? It depends…on several factors including your citizenship, where you live, how old you are, and whether the accounts were funded publically or privately.
Given the complexities and possibly severe penalties, navigating tax issues without professional help is definitely not advisable. Members of our private Your New Life in Italy community recently participated in a Q&A with our Italian tax expert, Paolo Rigo of Studio Rigo. Paolo will be the first to tell you that every situation is unique so it’s impossible to give blanket advice but there is one piece of universal guidance:
“In my almost 17 years of experience, I see that being proactive is the best way to stay out of trouble. Declaring everything, finding the best ways to be compliant first and then, only after that, looking for good alternatives for tax savings is the best strategy.”
Paolo is just one of many experts inside of the Your New Life in Italy community sharing their knowledge on topics like obtaining citizenship, purchasing property, learning the language, and renovating. Inside the community, you’ll find a group of like-minded people from all over the world helping each other move to Italy faster, easier, and stress-free.
Does this sound like a movement you’d like to be a part of? Enrollment is now open so come join us!
Location Spotlight: Bergamo, Lombardy
This week, we feature a breathtaking, historic city in northern Italy, Bergamo. Given its location near Milan, Lake Como, and Switzerland, Bergamo is sometimes overshadowed by its neighbors but it is truly a city that can stand on its own merit.
Bergamo’s geography creates a terraced city. The older part of the city, Città Alta, sits on the top of a hill and is enveloped by over 3.5 miles of Venetian walls erected in the 1500s when Bergamo was part of the Venetian empire. The walls are almost perfectly intact and are now designated a Unesco World Heritage site.
The lower part of the city, Città Bassa, is full of amazing shopping, cultural landmarks, and incredible Neoclassical architecture. Even more impressive is Bergamo’s public transportation options. The city is extremely well-connected with a train station, regular bus service, and an airport. There’s even a cable car that offers easy transport between the lower and upper parts of the city.
A visit (or a permanent move) to Bergamo is not complete without enjoying the local cuisine. I can’t recommend Casoncelli alla Bergamasca enough. This hearty pasta dish is stuffed with veal, pork, cheese, garlic, parsley, and sometimes pieces of fruit (like raisins or pear). It’s typically served in a butter and sage sauce. Yum. For dessert or an afternoon pick-me-up, you must try Polenta e Osei. Don’t expect polenta though. This divine, sweet treat is actually a yellow sponge cake usually filled with hazelnut cream with a marzipan bird on top.
Can’t decide whether you want to wander through the cobblestoned maze of narrow streets of Città Alta or enjoy the more metropolitan energy of Città Bassa? Understandable, and you have to enjoy both to appreciate the unique charm of Bergamo. This beautiful city offers visitors and residents a 2-for-1 package that can’t be missed.
Curious about the cost of living in Bergamo? Check out this graph comparing it to Atlanta, Georgia:
Last Sunday’s Vendita newsletter featured this ⬇️ amazing property in Bergamo. Can you believe this location? It’s perfect. Did you miss it? Be sure to subscribe via email, or join our Telegram channel. It’s completely free!
ASA (Ask Samantha Anything)
Email us at sophia@smartmoveitaly.com to submit your questions.
Dear Samantha: I am very interested in buying a property in a 7% town but would like clarification on one thing: Since the tax benefit lasts for 10 years, what happens after that point?
Dear Ryan: Great question! A 7% town (for those who are scratching their heads) is a town with a population under 20,000 people, and that is in one of the southern regions, Abruzzo, Puglia, Campania, Calabria, Molise, Basilicata, Sardinia, Sicily. If you collect a pension and retire to a qualifying town, you can opt for a flat tax of 7% on all foreign income. This can be a very good deal for many retirees, however, this benefit is only for ten years.
After ten years, you will go back to the regular Italian tax system which is a graduated tax starting at 23% to 43% depending on your income. So it is best to plan for your income and assets to move to the country within this time.
Iconic Italy - The Fiat 500 🇮🇹 💕 🚗 🐭
There are many ways to describe Italians but passionate seems most accurate. This passion spills over into all aspects of life, especially when it comes to food, fashion, and cars.
Italy’s automotive lineage runs deep and includes internationally recognizable brands such as Ferrari, Lamborghini, Maserati, Pagani, De Tomaso, Dallara, and Ducati. Even with this impressive lineup of high-performance machines, one of the most iconic designs is also one of the most unassuming: the Fiat 500.
Back in the 1930s, Designer Dante Giacosa wanted to create a car that would be accessible to all Italians and conserved both fuel and steel (which were at a premium) without sacrificing performance. Nick-named the Topolino (little mouse or Mickey Mouse), the centrocinque was manufactured from 1936 to 1955. Early versions were generally 2-seaters (a third person could squeeze in when the canvas top was open) and came without bumpers, which could be ordered separately.
Today, the Fiat 500 has a bit of a cult following as more and more people, in Italy and around the world, painstakingly restore their vintage Topolinos.
This little car has a personality all its own and has evolved tremendously over the years to reflect updated technology and performance standards. Many versions of the 500 have been introduced since that first model, proving that the simple, classic design can stand the test of time. In fact, Fiat recently launched the newest version, an electric 500. Long live Italian automotive ingenuity.
Have you had a chance to drive a Topolino? Let us know in the comments.
Facciamo una passeggiata. 🚶🏽♀️🚶🏽♂️
Are you familiar with the Italian tradition of passeggiata? This evening stroll is a lovely ritual that promotes a sense of community, fosters relationships, and gives neighbors and chance to catch up on the daily gossip. When living in an Italian town, passeggiata is often the highlight of your day.
Share your passeggiata experience in the comments.
The Schengen Shuffle - Not a Dance Move, but Maybe It Should Be 💃 🇮🇹 🌎
The first step in planning your relocation to Italy is to figure out how to stay in Italy. For some, this means pursuing citizenship or a visa, but if you don’t qualify for either, all is not lost.
Recently, Sam addressed this issue in the Smart Move Italy bootcamp. She explains that, although you may not have a dance floor handy, the Schengen Shuffle may soon become a part of your rhythm.
What are the details of this dance? It’s simpler than the hokey-pokey but does take a bit of practice, at least when it comes to planning. You basically have a Schengen clock that starts ticking the moment you enter a Schengen country (like Italy). You can stay in this zone for 90 days, at which point, you must exit for 90 days to reset the clock. Rinse. Repeat. That’s what it’s all about.
Some may find this plan inconvenient but it really is a practical option for those who would otherwise not be able to stay in Italy for an extended period of time. Plus, on the bright side, the Schengen Shuffle allows you to explore other parts of the world or keep a familiar home base.
The penalties for overstaying really aren’t worth the risk so maybe the Schengen Shuffle is in your future. If you’re a shuffling pro, we’d love to hear your tips. Feel free to share them in the comments.
What do you love most about Italy? 🇮🇹 💗
We have something in common: a love for all things Italia. What it is about the Bel Paese that draws you to its bustling cities, hilltop towns, long stretches of golden beaches, or green swaths of fertile fields? Let me know in the comments.
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