Moving soon to Italy....not sure yet where to go......

[MarkProsser]

Originally Posted by NickZ

That's not true. The Italian tax code sets out three tests.

Registered in the anagrafe

Centre of life

Normal domicile.

If you pass any of the three tests for the majority of the year you're tax resident. There is no requirement to actually be in Italy. Not in law not in case law.

Memory tells me the 183 test is one of the last tie breakers in the standard double taxation treaty. But I can't imagine too many people get past all the other tie breakers first.

Thanks Nick, I have to say this is an area I am researching now - finding definitive answers on Italian Tax Matters is not easy - I refer to one thread I found:

"Italy Income Tax for an Individual

An individual is liable for tax on his income as an employee and on income as a self-employed person. Tax will be payable on income earned in Italy and overseas by an individual who meets the test of a "permanent resident" of Italy. A foreign resident who is employed in Italy pays tax only on income earned in Italy.

One of two tests must be passed to be considered an Italian resident: a life centered in Italy, or being registered in the Population Registry as living more than 183 days a year in Italy.

It is important to point out as regards taxable income from outside Italy, that a "tax credit" is granted for tax deducted outside Italy. In the case of income from a salary, the employer is obligated to deduct the amount of tax payable on a monthly basis. A self-employed person must prepay income tax that will be offset on filing an annual return. The advance payment is determined on the basis of the return made for the previous year. In the event of a new business, the advance will be calculated on the basis of estimates made by the owner of the business."

I am happy to receive more complete information and reference material if you have access.

Many thanks, Mark

[MaggieBuchardt]

Thank you all for your fast and informative answers. It seems I have to read a bit more to figure out how to make the temporary move as painless (financially and tax wise) as possible. I sure don't want to pay taxes in Italy just yet, so maybe we will have to stay shorter that 183 days. Didn't know about the 4-year rental rule, information is much appreciated. I have another question-how are the winters in the south of Italy-Calabria, Basilicata ? Is it rainy all the winter and gray, do we need the heating all the time, does it snow? I have some fair idea, but opinions do vary...

[NickZ]

Originally Posted by MarkProsser

Thanks Nick, I have to say this is an area I am researching now - finding definitive answers on Italian Tax Matters is not easy - I refer to one thread I found:



One of two tests must be passed to be considered an Italian resident: a life centered in Italy, or being registered in the Population Registry as living more than 183 days a year in Italy.

Outside of there being three tests there is nothing wrong with the above. Except being in the registry (anagrafe) doesn't mean you're in Italy. In theory you could sign up Jan 2nd then go on a worldwide cruise. You'd still be on the list if you didn't cancel it.

http://www.pwc.com/us/en/hr-internat...taly-folio.pdf

That's in English pg 4.

For obvious reasons most documents discussing this are in Italian.

[NickZ]

Originally Posted by MaggieBuchardt

Thank you all for your fast and informative answers. It seems I have to read a bit more to figure out how to make the temporary move as painless (financially and tax wise) as possible. I sure don't want to pay taxes in Italy just yet, so maybe we will have to stay shorter that 183 days. Didn't know about the 4-year rental rule, information is much appreciated. I have another question-how are the winters in the south of Italy-Calabria, Basilicata ? Is it rainy all the winter and gray, do we need the heating all the time, does it snow? I have some fair idea, but opinions do vary...

Simple answer is the lower the altitude the warmer.

Potenza (Italia) - Wikipedia

That's Potenza Brrr

Winter is the rainy season. Some years it's worse then others. Last year was horrid.

[MarkProsser]

Originally Posted by NickZ

Outside of there being three tests there is nothing wrong with the above. Except being in the registry (anagrafe) doesn't mean you're in Italy. In theory you could sign up Jan 2nd then go on a worldwide cruise. You'd still be on the list if you didn't cancel it.

http://www.pwc.com/us/en/hr-internat...taly-folio.pdf

That's in English pg 4.

For obvious reasons most documents discussing this are in Italian.

thanks Nick, hadn't found that PWC doc - very handy - much appreciated. You with PWC?
Best wishes, Mark

[NickZ]

Price Waterhouse Coopers. One of the worlds largest accounting firms.

[MarkProsser]

Originally Posted by NickZ

Price Waterhouse Coopers. One of the worlds largest accounting firms.

At which office are you based?

[godgie]

Maggie,
I may have an idea for you re:your long term rental request.Phine me on 0035318428662 at pm time if you wish
john fm dublin

[MaggieBuchardt]

Thanks John, will call you in the afternoon