Thank you for the video. Unfortunately, I had time to understand what Ms Marciasini said. I'm hoping there will be more videos on the topic. Thanks again
It seems to me that there are tax conventions between Italy and the USA which enable USA citizens who become Italian residents to NOT be double taxed on any and all declared income. Taxes as a general rule are applied in the country of your residence. In this case if you become an Italian resident you will pay your taxes in Italy. As a general rule outside the 7% tax program, taxes in general are higher in Italy when compared to the US, however cost of living, property taxes and a number of other expenses are lower. The best tax treatment can be achieved through the 7% tax, provided that you are willing to live in a smaller town in Southern Italy, Sicily and perhaps Sardegna. In all other areas of Italy consider paying an average of 28-32% tax on taxable income up to 60,000-80,000 dollars. These are approximate % yet close to real tax cost. If you are earning a combined income of 100,000 dollars be prepared to pay $25,000 to $30,000 in tax. You may have some tax credits that will reduce that amount. For US citizens, cost of medical coverage in Italy is very low and some Italian regions (not all regions) have excellent medical infrastructure and care.
Would Christine use headphones so we don't have to listen to her as if she's in a well? and can you have the two "experts" speak in a way where they actually answer the question instead of just saying it's complicated. There is a weird sort of condescending attitude from Christine and Donald - super annoying.
Regarding the special flat 7% tax regime in Southern Italy. I had understood that the 7% tax is paid directly to Italy but that I could take this as a credit against my US taxes. Now based on this video (thank you), are you saying that I MAY not be able to take a tax credit in the US? Thank you
The audio on that lady sitting in the white room is so hard to understand. It’s digitizing and then the reverb. I had to scroll forward through it. Seems like good info, pity only about 2/3 of it was intelligible.
Are us govt pensions, such as U.S. federal govt and military retirement, VA disability compensation for disabled veterans, social security? Between military retirement and VA disability, I bring in just over $100K/yr…when my wife retires from her federal career, she will receive over $50k/yr; then she will likely receive the max Soc sec retirement and I’ll be close behind.
Following up on this. Not sure why no response yet. My question is simple. If I elect the 7% tax regime (assuming I qualify) can I apply those taxes to my US taxes as a foreign tax credit? Or does the IRS consider that regime differently and therefore not elible for credit.
Hi Loren, As mentioned by Donald and Christine in the video, there are a few tax accountants who do consider the taxes for the 7% US tax regime for the US Foreign Tax Credit, there are a few accountants who do not. Hence, it would be best if you please contact Donald or Christine regarding your situation. You can email them at donald.carroll@studiopirola.com and christine.marciasini@studiopirola.com. Let us know if you need any more help. Thank you!
This is not helpful. Does not seems like they are the experts in their fields. This was not helpful to me. Look at some videos of France taxes and see how it is done.
This is a pretty unhelpful video and it looks like there are very few follow up answers to many people’s good questions. The production level of the video is poor too. To be honest I feel like this reflects poorly on your company but thanks.
Christine is difficult to understand, and her swinging in her chair is distracting--more so because I have to look at her face to help the intelligibility.
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Thank you for the video. Unfortunately, I had time to understand what Ms Marciasini said. I'm hoping there will be more videos on the topic. Thanks again
It seems to me that there are tax conventions between Italy and the USA which enable USA citizens who become Italian residents to NOT be double taxed on any and all declared income. Taxes as a general rule are applied in the country of your residence. In this case if you become an Italian resident you will pay your taxes in Italy. As a general rule outside the 7% tax program, taxes in general are higher in Italy when compared to the US, however cost of living, property taxes and a number of other expenses are lower. The best tax treatment can be achieved through the 7% tax, provided that you are willing to live in a smaller town in Southern Italy, Sicily and perhaps Sardegna. In all other areas of Italy consider paying an average of 28-32% tax on taxable income up to 60,000-80,000 dollars. These are approximate % yet close to real tax cost. If you are earning a combined income of 100,000 dollars be prepared to pay $25,000 to $30,000 in tax. You may have some tax credits that will reduce that amount. For US citizens, cost of medical coverage in Italy is very low and some Italian regions (not all regions) have excellent medical infrastructure and care.
The sound on Christine is so hard to hear and understand
Would Christine use headphones so we don't have to listen to her as if she's in a well? and can you have the two "experts" speak in a way where they actually answer the question instead of just saying it's complicated. There is a weird sort of condescending attitude from Christine and Donald - super annoying.
Regarding the special flat 7% tax regime in Southern Italy. I had understood that the 7% tax is paid directly to Italy but that I could take this as a credit against my US taxes. Now based on this video (thank you), are you saying that I MAY not be able to take a tax credit in the US?
Thank you
Hello. I recieve monthly payments for DOD retirement and the VA for disability. Are these to incomes taxable under Italian Tax law?
The audio on that lady sitting in the white room is so hard to understand. It’s digitizing and then the reverb. I had to scroll forward through it. Seems like good info, pity only about 2/3 of it was intelligible.
Are us govt pensions, such as U.S. federal govt and military retirement, VA disability compensation for disabled veterans, social security? Between military retirement and VA disability, I bring in just over $100K/yr…when my wife retires from her federal career, she will receive over $50k/yr; then she will likely receive the max Soc sec retirement and I’ll be close behind.
are distributions taxed at 7% if you are in the 7% ctegory?
If my wife and I want to retire in lets say Piedmont, and have a combined Social Security of $4700/month will that all be taxed in Italy and in US.
I would like to know that as well. Thanks.
Following up on this. Not sure why no response yet.
My question is simple. If I elect the 7% tax regime (assuming I qualify) can I apply those taxes to my US taxes as a foreign tax credit? Or does the IRS consider that regime differently and therefore not elible for credit.
Hi Loren,
As mentioned by Donald and Christine in the video, there are a few tax accountants who do consider the taxes for the 7% US tax regime for the US Foreign Tax Credit, there are a few accountants who do not. Hence, it would be best if you please contact Donald or Christine regarding your situation. You can email them at donald.carroll@studiopirola.com and christine.marciasini@studiopirola.com. Let us know if you need any more help. Thank you!
This is not helpful. Does not seems like they are the experts in their fields. This was not helpful to me. Look at some videos of France taxes and see how it is done.
Christine is hard to understand. Please ask her to stop twirling around and to speak directly into the microphone. Also she’s in a very echoey room.
This is a pretty unhelpful video and it looks like there are very few follow up answers to many people’s good questions. The production level of the video is poor too. To be honest I feel like this reflects poorly on your company but thanks.
Too bad these experts don’t seem confident about what they know and seem unable to articulate in plain language.
vocals on the dark hair women is very eco like.
Too all over the place.
One problem with all this: Italians and how they do things.
Christine is difficult to understand, and her swinging in her chair is distracting--more so because I have to look at her face to help the intelligibility.
She is incomprehensible.