8 Cheap Houses In Italy 🇮🇹 (Only 7% Income Tax 💰)
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- Опубліковано 27 вер 2024
- Did you know you can also retire to Italy and pay only 7% income tax?
Watch this video to see:
• Rules for 7% income tax
• The 8 regions where it's available
• A cheap house in EACH REGION
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Thanks for watching!
Tommy 😎
🏠 Property listings in the video:
🔗 Molise: www.gate-away....
🔗 Campania: www.gate-away....
🔗 Calabria: www.gate-away....
🔗 Sicily: www.gate-away....
🔗 Basilicata: www.gate-away....
🔗 Sardinia: www.gate-away....
🔗 Puglia: www.gate-away....
🔗 Abruzzo: www.gate-away....
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🔗 Here's the link for finding the population of Italian towns and villages → esploradati.istat.it/databrowser/#/it
When you find a house you like in one of the 8 regions that have the 7% tax, check to make sure they are under 20,000 population!
you have to corelate with the net income of the regions.
@@ciclurieconomice8494 I'm not sure I understand. Can you clarify? Thanks.
fantastic Italian government website to track demographics and population !!
Because my relatives live there.
outdated
Something else to remember...if you buy a house/flat/etc in Italy, you better make sure it screams resale. Because if it doesn't you will NEVER be able to sell it if you want to, there are so many properties in Italy for sale that are not really that good...the ones that can easily be resold are more like 300K and above...but that's still much less than homes in the USA....and Italian rennovation is not really an option....it could take you a long time to rennovate something--a very long time.
Thanks for your comment
Lecce is known as the Florence of the south . I love that home in Soleto , a Bargain . Thanks for posting the links to the properties . very useful .
You’re welcome!
Great video and great info! We've taken advantage of this, having moved to Campania region. We love it!
Thanks for watching!
What is the cost of living like for you?
Good afternoon Tommy thank you for having all these videos. My family lives in Lazio. I just retired from law enforcement and live with retired hubby in key west, florida, We hope to move to italy next year as the US is too expensive as far as taxes and insurance, etc.
😁
My concerns are always the hospitals in Sicily I'm from the south east coast and the best hospital is like 2 hours away and if you need something more specific like heart or needs more care you need to go up north like Milano or Rome so crazy its happened to my family in Pozzallo. Antonio
Always important to have a hospital fairly close. Thanks for watching!
This was an incredibly insightful and informative video. And the properties you found in each area are gems! Please make more!
Thank you! Will do!
One point of clarification. To qualify for this income tax incentive, you must receive some sort of retirement pension to qualify. If you meet that requirement, your other forms of income would also be taxed only at the flat rate. This means that you can also have a job and receive income from it that is only taxed at 7%, provided you're getting those pension payments, and your job income is foreign-sourced. Having a job does not disqualify you from the program.The things that disqualify you are: 1. Not having some sort of pension; 2. Locating to a town that does not qualify; and/or 3. Having been a legal tax resident of Italy at any time within the past 5 years.
What's also interesting is that if you're've spent a couple or few months in Italy regularly for the past 5 years or any length of time, really, but never stayed past the 180 day mark and never became a tax resident, then you could still decide to now spend more time in Italy, become a tax resident, locate to a qualifying town, and be eligible for the incentive.
@skranz7790, I have not seen info saying that you can still work under the 7% regime as long as you are also drawing on a qualifying pension. Do you have a source for that?
Everything I've seen says specifically all income must be passive. You CANNOT get income from working.
• Social Security
• pensions
• investment returns
• dividends
• rental income
I'm not an immigration attorney, but if you have some sort of employment income, you'd want to verify that it's okay first. I don't think it is.
Passive owner income from a business may work, but don't quote me on that!
@@traveltirement I'm 100% certain that you can shield foreign sourced business income under the 7% tax regime. UA-cam won't allow me to post a link here. But, you can search the information provided by the Italian tax firm Studio Legale Metta located in Bari, Italy, that stipulates all the different types of income that are shielded by the program as long as those are in conjunctiom with some sort of regular prnsion income as well.
In actual fact there are also other Italian tax programs that will even allow you to have a job in Italy and shield 70% of that income from taxation. Though you cannot elect to use both tax incentives at the same time.
@@thurianknight Yes. Check out the Italian tax firm Studio Legale Metta located in Bari Italy.
@TommySikes My pleasure.
Yes that's a nice view I like mountains and streams
Me too. Nothing better to me than a deck/terrace/patio with a view of mountains. Especially when you can watch the sunset!
I'm not an American retiree, but your video is just nice with useful description of the real estate situation in the areas you described.
Thanks for that!
Cheers from Kyiv, Ukraine
@@sydiuk 😄
Thanks for this very helpful information. I hope to move to Italy soon. This will help narrow down my options 😊
Thanks for watching!
Bonjourno, Tommy! Thank you for the informative videos. We are now considering moving to Italy with the Elective Retirement Visa (ERV). The 7% towns look good for our needs: bring a paintbrush, hammer, and trowel. Since the Portland condo market is down, we will rent our condo and visit the country in the spring. Grazie! Dean & Cindy
*Update: Italy looks too hilly for us; we are back in France.
Sounds great!
Amazing properties! My dream of moving to a small town in Italy!! Retirement is only a few years away and definitely contemplating this move. I'd like something more rural though.
I’m a fan of the countryside and mountains myself!
Same here
Think about where you want to live as you age: rural areas may not be good options if you get to a point where you cannot or would prefer not to drive.
Another very informative video. Thank you for sharing details on the 7% tax. Yes - we would LOVE to see more videos like this. Grazie mille!
Thanks for the vote! 😀
Thank you for sharing all of your knowledge. I so want to move there, permanently. I hope very soon.
Thanks for watching!
Also know that the 7% tax you pay on your US income, you can DEDUCT that amount from the total of your Fed income tax bill. So, generally, you will divide your annual tax bill between 2 countries, but pay no more that you normally would just living in the USA. Make SURE to establish residence in a tax-free US state before doing any of this, so your state will never come asking for state income tax--because they will. If you have TAX-FREE income in the USA (say municipal bonds or muni bond funds), it will be included in the income that is subject to Italian tax because Italy says if its passive and puts money in your pocket, its subject to Italian tax (unlike the USA on that). Greece has the same program, EXCEPT it applies to the entire country with no population restrictions, and is good for 15 years. The EU doesn't like any of this, because they don't want people with money moving to EU member states and saving money on taxes--that threatens the EU system of socialism. That's why a similar program in Portugal was recently discontinued--the socialist Portugal president caved in to the EU paymasters....
Thanks for watching 😎
Very well explained, my dream in 13 years. Thank you for wonderful content 👍👍👍 what is the tax percentage for non regions houses just wondering.
The regular income tax in Italy is progressive, starting at 23% (up to €28,000), then 35% (€28,001-50,000), and the top rate is 43% (over €50,000).
Great vid Tommy, i love the relevant details around tax n stuff. Top draw. I currently receive your emails
Awesome, thank you!
Love it!!! Thanks!
Thanks for watching!😎
Good intel!!
Thanks buddy! 🙏😁
Should also check the seismic zone and if there's a train station that serves the village. You really should be fluent too, if you want to assimilate.
Great ideas. Agree you should learn some language basics.
And you’ll become fluent the more time you spend there!
I agree with you regarding knowing the language outside of major Italian cities. For instance, I found that in Pisa, outside of the Leaning Tower, very few people spoke English. Fortunately, my knowledge of French helped me comprehend enough Italian to get by.
I hope you having a great day I always loved your great information thanks for taking your time and share information with us
Thanks for saying that! I appreciate your watching.
Love the last property you showed. Thanks
Hard to beat those views! 🤩
great video, man! very informative.
Glad you liked it! Thanks for watching.
Wow! Very informative video. Thank you 😀🙏👏
Glad it was helpful!
Hi Tommy, Thank you very much for your interesting contributions that help people find places to retire. I am about to retire and thinking to move over Italy, only I am not sure that since I am a widower without children it would be safe for me to make the move. I would love to learn Italian and have the opportunity to just go up and above while living in Italy, South of France or North of Spain. I am in the "search".
Depending on where you are, there are lots of American and British expats in all 3 countries.
Just like in any country there are spots that tend to have more crime. But in general these are all very safe countries in which to live.
Tommy, you're awesome. Thanks for putting all this info together. SO helpful.
Thanks for saying that! Watch for more detailed videos like this one... 😎
Some states in US have 0% taxes on retirement income. However some other taxes in that state maybe high on side like property tax and taxes on food or products. Some states I wouldn't be interested in living or retiring in, say Iowa doesn't tax retirement income, but it maybe in middle of a corn field and nearest town to shop or medical facilities is 2hrs away . My state also doesn't tax retirement income but very expensive with everything else, so it's a balance
Thanks for watching and commenting!
You are talking about state income tax. There are several states in the that do not have state income tax, FL being one of them. What Tommy’s video suggests is that Italy’s federal income tax is only 7%. That’s totally different. In the US you are taxed on active and passive income if it’s above a certain amount. If you’re only living on SS then you’re fine in the US, but if you make $100K per year in passive income then I believe you are taxed at that specific tax bracket for short term capital gains, dividends, or rental income. I’m not retired and I’m not sure of all retired taxation, but I do have investment property income that I get taxed on now as earned income since I work full time. I’m not sure how the US would tax citizens that decide to claim residency in Italy. Obviously your passive income would be from SS, pension, and investments in the US, so you may get taxed by both the US and the 7% in Italy. I’m not an accountant, so I’m not sure.
@@jmobing3972 The 7% income tax in Italy is a break off their nomal rates, which run from 23%-43%.
So it's a significant savings if you're moving to Italy already.
The tax you pay in Italy you get a tax credit for in the US, and vice versa.
So you're not double taxed.
But as a citizen of the US you still have to file and pay anything owed in the US.
It's the US Healthcare costs that will bankrupt you in retirement. It'd ridiculous to feel you need to leave your country because of crime and the sick care system. But hey, it's Italy! Could be fun 😊
Healthcare is one of the main reasons Americans become expat retirees. Not just Italy, but all over.
It's embarrassing that the wealthiest nation on Earth has such a poor healthcare/insurance system.
I'll be making a video about this also...🎥
I've always seen different things online about the 7 percent tax rate and whether that applies to a pension. The pension is taxed in the United States where I'm from and some say you would also be taxed again in Italy. Others say your pension would not be because of no double taxation. So I never really get any clarity about it.
I know for the US, if it is taxed in Italy, you get a tax credit on your US return.
So at least no double taxation on a part.
Abruzzo is beautiful and I know it well having my grandparents' house
Wonderful! Thanks for watching.
Are we related?! Is it in L'aquila?
Just subscribed, Loved the Puglia property but wish it was in Abruzzo 😄
Thanks for the sub!
Health care varies drastically by region in Italy. I leave in Tuscany and the health care is excellent, however, that's not the case everywhere. Just a heads up to consider
Thanks. I have heard that. I know there are good medical facilities all over, but important to check about your closest hospital.
😁
I'd like to see more coastal properties if you can find them? Also what are your favorite sites for exploring real estate and rental props. Thank you~
I always start with Gate-Away.com. www.immobiliare.it/ too for rentals.
Awesome!
Thanks Marco!
Very helpful thanks
Thanks for watching!
Across from Apulia is Albania not Greece. The city you were pointing at is Vlore which has ferries to Bari as does Durres, Albania. Americans can stay in Albania for up to one year on a tourist Visa in Albania.
Thanks for clarifying!
Thanks for the information. Can you please provide me the database for various properties throughout Italy?
Thank you.
I start with Gate-Away.com to do property searches.
Yes all right what you say but you also check the - zona sismica - the earthquake risk of the zone - abruzzo is in many places like L‘Aquila in the zone 1 of high risk - there are zone 1-4 from highest to lowest - make sure to check before you buy - there is always a reason for being very cheap - the best region in that respect is the salento region of south puglia.
Yes, this is something you can check on. But don't be nervous.
You're WAY more likely to die driving to your property than in an earthquake.
And driving deaths are WAY less in Italy than the US too. Very rare.
@@traveltirement nevertheless people should consider to have a real estate insurance including floating and earthquake
@@robertoposa1120 Absolutely agree there Roberto!
In the US after I use my deductions my taxes are minimal on my social security. Why would someone move to Italy and pay 7% tax in a less desirable area with lower quality healthcare and after 10 years you’re basically stuck in that area and your taxes go up significantly. I also heard the infrastructure is terrible and road closures are very common. It looks to me that if Italy wants to entice people to move there because their population is dwindling they shouldn’t restrict where you can live to get a tax break and the tax break should be permanent. For me it is not worth the headache and hassle but thanks for the video and info you provided. It is appreciated.
Thanks for watching!
What about the other tax rates? I guess there are tax for your property as well?
Yes there are taxes when buying the property. I'll do another video on that.
The % rate depends on various factors. Keep watching!
Beautiful properties
Thanks for watching!
Agnone receives quite a lot of snow.
Thanks for that. I had heard the mountain areas of Molise can get quite a bit! ❄️☃️
Can you send the information on the Puglia property and area? Thanks!!
The property listing should be below the video in the description.
You’ll see the agents info there.
Thanks for watching!
I have retired last year and dream to live in Italy. I got my social segurity $2,400 monthly.Are you thinking I would live in Italy in one of those town with less than 20.000 people. Really, love it. I speak English and Spanish and learning Portuguese at this time. Please can you answer me. Thank you for this video. God bless you. ❤❤❤❤😊😊
The income requirement is €32,000 euros, so that would be about $2,920 per month. So you're close!
Hi Tommy:
Please send me the list of areas providing 7% Italian income tax.
Also....do you know what is the benchmark minimum passive income is required to obtain residency as an Expat retiree?
LUV YOUR VIDEOS !!!
The Elective Residency Visa income requirement is €32,000 per year for a single person. €38,000 for a couple.
The 8 regions for 7% tax are:
Abruzzo
Molise
Puglia
Basilicata
Campania
Calabria
Sicily
Sardinia
Then a couple dozen individual towns in Lazio, Umbria, and Marche.
@@traveltirementThanks for the informative video! and you get right to the point; no beating around the bush. You just mentioned some towns in Lazio, Umbria and Marche. I love Urbino, and was there for a summer. How can i find a list of these towns more central and north? I am just starting a possible search; have been to Italy many times. Many thanks.
@@josettepiacenti1165 The towns are listed in this tax law:
www.gazzettaufficiale.it/eli/id/2016/10/18/16G00205/sg
Scroll down the left side to "Allegato 1".
You'll see the individual towns listed there.
@@traveltirement thanks so much. I just came across your channel yesterday.
Sardinia is excluded from seismic towns.
Thanks for adding that info.
I plan on moving my family when i retire in about 5 years. Looking to move to Sicily.
Sicily is very affordable! 👍
@@traveltirement what about the gun laws and self defense?
@@ellmiller2013 Firearms laws in Italy are very strict. You need to apply for a firearms license before moving to Italy. All firearms must be registered and licenses renewed on a regular basis.
I would encourage you to NOT take your guns to Italy.
@@traveltirement not moving there if that is an issue. I will do my due diligence. But, if it is an issue i’ll stay here in the US.
@@ellmiller2013 Probably a good idea. Europeans don't want Americans bringing their gun culture to Europe. They think it's crazy that we can just go buy guns at a "gun store". Which it is.
This was incredibly helpful. Thank you so much. I am interested in Abruzzo, Sardinia and Sicily. I have a teacher's pension and a rental home in Portland, OR. I should qualify for the 7% income. I will be visiting southern Italy in May of 2025. I have a friend in Rome who will hopefully be able to drive with me to the east coast. I would like to check out the Abruzzo region first. Do you recommend renting an apartment near the region one is most interested in before buying property to make sure you like it enough to live there?
Absolutely. If you can, rent so you can really get the feel for a region.
It can also give you time to find the right property.
Thanks for watching!
I keep reading “you have to receive a pension” everywhere. So what is it? Can I use this if I am not retired, but I have a passive income (dividends) from a US website? Or it’s exclusively for retirees? Thanks!
I’m not an immigration lawyer, but my understanding is that you have to have “passive income” from outside Italy.
• Social Security
• investment income
• rental income
• pension
But there’s no box to check that says “Are you retired?”
I know of folks who retired early on passive income without a true pension.
Italy just wants to know you’re self-sufficient and can bring money in to be spent locally.
very informative and insightful! question, am i correct in assuming that if choose one of the 8 regions offering the 7% flat tax, any city with population less than 20,000 would qualify? or does it have to be certain identified cities within each of the 8 regions? also, does the 7% flat tax (national), also diminish in like the municipal and regional income taxes?
Any municipality with less than 20k.
Here’s a good article on the 7% tax regime:
www.relocate.world/en/articles/Italy-tax-for-pensioners#
Correct me if i'm wrong but I understand in order to own property in italy. Thank you i'm very interested in buying property possibly the end of the year. I'm a widow and I am in the process of selling my home in texas.
To buy property in Italy you do not need to be a citizen or a tax resident.
But to stay more than 90 days at a time, or to retire there, you have to apply for a long stay visa.
I keep getting those these mixed up. Should I contact the Italian consulate in houston texas before I leave and get that extra visa? ?? I asked that because I'm selling my house and I'm praying that it sells before I leave for Italy. If so, i'd wanna stay longer.
@@kcaso92009 You must apply for your Italian visa in the US. NOT in Italy.
If you don’t have it before you go, you’ll have to come back to get it.
👍
What IF I have enough 💰 to purchase a home outright with enough 💰 to live on? Unemployed in Italy and in the US. My passion hobby is what would keep me busy full time.
That would work as long as you meet the passive income requirements of the Elective Residency Visa. There are other visas also.
You have to apply and be accepted. It's not automatic.
Property tax is 1% right?
If you mean annual property taxes, they usually range from 0.4-0.7%.
That’s what I’ve read.
You mention in the video having a list of all the qualifying municipalities in these regions for the 7% tax rate. Could you please share that with me? TIA
It’s actually a database.
HTTPS://esploradati.istat.it/databrowser/#/it
Can you tell me what the income level is per year to qualify ? I love the last house that you showed and would be extremely interested. Is it 7% taxes on your annual income and how are the utility cost for one person per month approximately ? How many taxes are there, what are the amounys of property tax and any other taxes ? Italy is my heart, I love Florence. I am retired and I am somewhat elderly. I want to live and die in Italy. I would be grateful for any information you can give me. Thank you
There a lot of information, but the short answer is:
• Italy taxes on your worldwide income
• You would still file in the US (if American) and get a tax credit for what you paid in Italy
• There are taxes when buying a property (like 4% or 9% depending on residency status)
• If the house is your primary residence, you pay ZERO property tax
Subscribe to the newsletter for more info as I make it available: traveltirement.com
It is my understanding that there are some villages in Lazio, Umbria, and Marche that also qualify. Do you know if this is accurate?
Yes this is correct. They are smaller towns that suffered earthquakes many years ago.
Nobody calls Puglia "apulia" in Italy. If you were here during the Roman times, perhaps.
Thanks for watching!
I am interested the property in campania : St Pietro. thank you Enzo
Here's the listing with the agent's information to contact:
www.gate-away.com/properties/campania/caserta/san-pietro-infine/id/628129
Thanks for watching!
Which is the most northern, biggest town that would qualify? Do you need to buy a place or can you rent?
You can rent but you must have a signed lease or rental contract.
No hotels or AirBnb.
I live 40 minutes (by car) from Milan, in a small town called Robbio, which has fast internet in 5G and a train station to go everywhere. I have two farmacies, two supermarkets, a post office and 4 banks in a radius of 1km, and I paid my house 35.000$, renewed. A 80m2 with two bedrooms, a big sitting room, a living kitchen, a big bathroom, a porch, a car box and a 18m2 cellar.
I'm not saying to drop agencies like Realestate, but if you check the internal italian selling site/agencies you could find good deals.
I don't even have a car, I reach Milan in 1 hour and 5 minutes by train, with a 5 euro ticket, if I need to go to a big city.
Thanks for sharing. What Italian sites can you find deals like this?
@LightMovies Thanks for this.
Would you be up for chatting about your experience?
@@traveltirement Do you mean "live", or just here in the comments?
Do you know if they would tax disability payments from veterans affairs? It is not taxable in US
If it’s a replacement of income, then yes.
If it’s reparations from an accident, then no.
At least that’s my understanding.
Curious to find out if they would tax disability income.
If it's from Social Security, I'd guess yes.
OK, I have passive income from Germany, and I am residing in the United States. I don’t think you ever said how much that passive income has to be? What kind of visa do I have to have to live in Italy for 6 or 7 months? That part really didn’t become clear to me.
For 2023, the Elective Residency Visa has an income requirement of €31,000 for a single person, or €38,000 for a couple. That's per year.
You can live in Italy for 6 months (180 days) on just a passport/tourist visa.
You would just have to split it into 2 x 90 day periods with 90 days in between.
Otherwise you'd apply for a long-stay visa (the ERV above is just one type).
Can Canadians take advantage of the 7% income tax? I've heard there's a problem and Canadians do not qualify. How can I find more details on this?
I would consult with a knowledgeable attorney.
I know Marco Permunian and he know his stuff.
italianrealestatelawyers.com/
maybe someday
Just takes some planning and commitment 👍😎
Thanks...
You're welcome!
What does “flat” tax mean: eg means on net income or gross income?
It means whatever your taxable income is, you'd pay 7% in tax. As opposed to Italy's normal progressive tax brackets, which start at 23%.
I hope that helps!
Can I get the list to the database please (town under 20k)
The database is structured by
• North Italy vs South Italy
• Regions
• Provinces
• Comuni (towns) ← This has to be under 20k
Here's the link:
esploradati.istat.it/databrowser/#/it/dw/categories/IT1,POP,1.0/POP_POPULATION/DCIS_POPRES1/IT1,22_289_DF_DCIS_POPRES1_24,1.0
I think you really need to do some research before making statements. Rome to Pescara is at least 3 hours, exceeding the speed limit.
Google maps says 2 hr 11 min. Sorry if I was off!
Thanks for watching!
Do you need to buy or can you rent ?
Can income come from Board of Directors compensation ?
You can 100% rent.
You’re supposed to have a pension or “passive income”, but all additional income will also get the 7% treatment.
Hey there! I've got a question about what qualifies as "passive income". Are you available for a consult? Thanks!
I’m not a tax professional, but my understanding is things like:
• pension income
• Social Security
• rental income (from outside Italy)
• investment income
• dividends
• passive business income
There may be more than that.
Thanks for the question!
@@traveltirement It's that "passive business income" thing that I'm curious about! Thanks for the info!
It’s probably fuzzy. Obviously if you’re doing work inside of Italy, that won’t work.
But if you have a website making money in the US, that can be justified as passive income.
A good accountant will know how to approach it.
@@traveltirement thank you!
If I buy a property in Italy and only live there 5 months out of the year my subject to income tax on my pension?
Not if you’re not a tax resident. Time spent there is only one factor in determining whether you are.
My mother gets social security. Can she bring me with her? I'm disabled but not able to get disability in the states even though I have a handicap sign.
I believe each family member requires an extra 20% of income. And you may need to be a dependent.
So, after 10 years at 7%, the tax rate returns to Italy's standard rates (23%-43%) ?
Yes, that’s correct 👍
US expat health care cost to apply to retirement visa?
Usually a few hundred dollars. Maybe more.
Still having trouble with that website gate-way. I'm coming to Italy April 2, touring Northern cities 3 weeks, then going south along the coast. I'll be in italy for a total of 3 - months. Want to see 7% tax homes near the coast? I'm a pretty independent retired senior. I'm in the process of selling my house here in Texas.
My budget is 75,000E . Can you direct me to someone or yourself?
Copy this link into a browser:
www.gate-away.com/properties?min_price=20000&max_price=100000¤cy=USD
You should get a list of properties under $120k all over Italy.
Zoom in on the map to the places you will visit. You just have to browse and sort based on what you want. Like number of bedrooms, terrace, etc.
Then you can contact the agent on any properties you like and set up a visit to see the properties.
So I would have to pay income tax from my social security?
Yes you have to pay tax on Social Security benefits.
But the cost of living is quite low, so you might have a better lifestyle even after paying tax.
Does this apply to Italian citizens abroad?
Yes. As long as you haven’t been a resident the previous 5 yrs.
Are you still subject to the wealth tax though? That's the biggest downside of moving to Italy if you have significant investments.
The wealth tax in Italy is very low.
Real estate = 0.76%
Financial/bank assets = 0.20%
This is based on worldwide assets.
I am a retired police officer. I do have some firearms i plan on bringing with me to Sicily. Any issues here with bringing them with?
You cannot bring guns to Italy unless for a sporting event.
Italy is much safer that the US because there are fewer guns.
Hello . Very usefull video. Thx. I am from România and I would like to Invest în a house în italy. I dont need something big and expensive from the bigining but I dont know what to do to purchese a house. If you can help I would be gratefull. Thx
I'm making a course about finding and buying a home in Italy. Keep an eye out!
do the apartments also have monthly fees like maintenance, co-op, HOA?
Depends on the individual apartment. No simple answer. Sorry.
Does it apply for Italian citizens born abroad who decide to go to Italy?
Yes, as long as you haven’t been a tax resident for the past 5 yrs.
Grazie mille 👍
Hi Tommy, does passive rental income from properties in Italy qualify for the 7% taxation or is it only foreign passive income that qualifies? I’m interested in buying vacation rentals in a couple of the regions you highlighted and retiring there. I’ve renovated and flipped multiple homes in the US and would love to do it in Italy.
99% sure it has to be foreign sourced income. So rentals in the US would qualify, but not rentals in Italy.
There are some special tax rules that can reduce income tax in Italy on Italian sources.
That will be another video 🎥
Good luck renovating here. Research the requirements for low tax.
Hi Tommy
Does selling your company fully qualify for this passive income as you can take out the cash over time?
I would say yes. You just need to demonstrate you can produce income without working.
The Italian gov't think in terms of "pensions", so you need to frame any income(s) in that way. Doesn't need to be a true pension though.
I hope that helps!
Could you please send me a link for appropriate residences in Abruzzo. I will qualify to retire in Italy and would like to settle in a village that allows me to pay 7% tax. I will have about €150 000 to spend on a house. Thank you. Greetings from Australia.
It's a database. You need to search the 8 regions mentioned in the video, then look for towns/villages under 20,000 population.
Here's the database: esploradati.istat.it/databrowser/#/it
@@traveltirement Thankyou for the database. Regards Anne from South Australia.
Hi , what would be the income requirement should I retire to italy after living most of my life in Canada , I hold a italian passport and was born in italy also but never resided in italy ever? I would appreciate your input thank you
For the Elective Residency Visa, the minimum passive income requirement is €31,000 (or €38,000 for a couple).
Please note that the Italian consulate in your home country may have discretion on this amount. It's not that you automatically qualify with this amount of passive income.
That income can be from: pensions (public or private), Social Security, investment returns, dividends, interest, rental income, etc.
It just can't be money sitting in a bank that you spend down.
I hope that helps!
@@traveltirement Hi thank you for your answer , so even if I am a citizen I would still have to apply for a visa ?
@@larino66 No, sorry. If you have citizenship you just need to register as a tax resident in the local comune.
You may not need a certain income as a citizen.
I just don't know much about the citizenship situation!
@@traveltirement Thank you so much 😊
7% doesn’t seem that inexpensive. What percent would it be if you aren’t in one of these areas? More?
Income tax rates in Italy run from 23% to 43%.
So 7% is much lower.
Hi Tommy am 55 and plan to retire asap will i still be able to retire or am i to young ,also the passive income how much does it need to be ,great video
The 2023 passive income for the Elective Residency Visa is €32,000 or about $33,650 USD as of this writing.
So a little over $2,800 per month USD.
And that’s for an individual. For a couple it’s €38,000.
Abruzzo. The house for 55,000 EUR 2 bedroom with nice views. Is this property taken?
I think it is! The property listing is in the description area below the video.
Here's the agent's site if you want to browse more in Abruzzo:
www.abruzzoruralproperty.com/
And what happens when they Pull the Rug mid term
like Portugal ????
You’d be grandfathered in for the remaining years 👍
@@traveltirementMaybe. Socialism is on the march worldwide.
After the 10 years, how much is the tax on your SSA?
Progressive rates from 23%/35%/43%
@@traveltirement Now I understand why people are not chomping at the bit to move to Italy. I'm sure the taxes are on par for living in Europe but it's expensive. It's bad enough that Social Security only gives $2600 per month. ($400 to Medicare) To be taxed on that amount of money after the 10 years would be crazy expensive. As I remember, when I was living and working in Rovigo Italy, my company paid my taxes. It must have been crazy expensive. Still, there is something about Italy that gets under your skin. The place becomes better than Disney Land. And, when you add up the cost of living in the United States, even if you do pay 20%+ in tax after 10 years, Italy is still more affordable.
@@jroar123 Yep. It's a combination of low cost of living, relaxed lifestyle, great food and wine, and more historic sights than almost any country.
That being said, you do need a certain level of income and/or assets to live a good life and not worry about money. Especially if you're paying the progressive rates.
Also, for early retirees, they can save $1,000-$2,000 per month in health insurance costs by being on the Italian public system
Not for everyone, but perfect for some.
@@traveltirement I totally agree with you on the costs of living in Italy compared to the States. There are financial tradeoffs between the two and Italy stands on top for many reasons. Everyone thinking about Italy should always do their homework. Sit down with a pen and paper. Compare the two in all aspects (as you mentioned). I have decided that it would be a good move. I know that money dictates the style of life you can live but not the quality. I have the skills to turn a cheap place that needs renovation into a high-quality place. Of course, location is important as well. I wouldn't suggest anyone move to the south side of Chicago or the Fith Ward in Houston, Texas. I'm sure Italy also has areas that are not desirable.
So I pay 7% and thousands of boat migrants get all for free. And after 9 years I pay the high taxes of some 45%. This looks like a trap and not like an honest invitation. But your video is excellent as it shows the need of countries to change something. I just do not want to pay for it.
I’m glad you have your mind made up.
INTERESTED IN PROPERTIES
Check out Gate-Away.com and you can search all over Italy 👍
I've never self reported my income in the US, why would I tell Italy what I make?
You won’t get to stay with an ERV unless you disclose it all and can price it. 😮😮
The US and Italy tax citizens on worldwide income, not just that made in the country you currently live.
They also have bilateral tax treaties, so you can avoid most double-taxation.
Do you need to get a permanent visa?
Yes, you need a visa if you plan to stay more than 90 days every 180 days.
The Elective Residency Visa is likely the one you would apply for. It’s known as the “Italian retirement visa”.
Yes if you want to stay more than 90 days in the EU. not just in Italy! So you can’t go for a month to Spain or anywhere else. You must exit after 90 days for 90 days
If you plan on living in southern Italy think about climate change, average summer temperatures can reach well over 30 C and last year over 40C. Many people are moving North. Perhaps that's why these houses are cheap in the South.
Yes, climate change is real and something to think about. I personally prefer seasons, so I'd look at a place in the mountains where there may be a little snow.
I think a coastal town would be decent too, because you'd have the sea to keep temperatures moderate. And maybe a nice constant breeze too.
Most people who have migrated north over many decades have done it for work. But climate may have had an effect also.
Those Temps are nothing new, they have always had them. The houses with thick stone walls help to control those extremes just like in Portugal, Greece, North Africa, etc. A nice split AC system run off of a few solar panels also does wonders during those extreme days with lots of sunshine....
@@angelomasciantonio Thanks for adding that!
@angelomasciantonio Temperatures go up and down. In the 1970s it was colder than normal and so- called experts were predicting global ice age by 2000. Then, in the late '80s through part of the '90s it was really hot (global warming). Temps cooled in the 2000s, comparably so. New term climate change covers both conditions. Genius.
@jk-califkid5017 couldn't agree with you more. Climate changes from sun activity or other events are too massive to be controlled by anything we do. If we get into a warming stage, everyone in world could probably stop burning carbon fuels and it wouldn't make much of difference in what is going to happen....
If it was as big an issue as some big lobbyists want you to believe, they would stop flying around the world in their private jets making pronouncements on climate change and living in their mega monster 25000+ square foot mansions. Bet their green energy stock portfololios are doing well though ....
7 percent is to much
Really? The normal income tax range in Italy is 23%-43%.
So it's incredibly low.
Where do you live if you pay less?
Why move to Italy and pay an income tax? There are plenty of countries which are far less expensive and there is zero income tax.
Because it's Italy! 🇮🇹 🙌 🥳
Some folks want to live in amazing places and are fine paying taxes. I would never live somewhere just because of the taxes.
Like in the US, the most millionaires live in CA and NY, two of the highest tax states. 👍
Like where?
@@delaslight In the 8 regions in the video, the income tax is just 7%.
That's amongst the lowest in the world.
Plus a lot of people are fine paying tax and living in the place of their dreams.
@@FotosLostnFound Many countries in central and south America have no income tax (I believe).
I‘m not sure if you don’t have to pay also taxes in the US after moving to Italy
Great video. Italy is on our potential list of long term retirement locations. Thanks for the info.
Any time!
thanks for the info... that place in Puglia was incredible. All I was thinking while you were describing the apartment was that place is probably gone already. there is no way that thing is available. what a beautiful apartment
Yes, I was blown away. There are a lot of places like that in a similar price range. Crazy!
UA-camrs are pushing up the prices, it seems