7 Percent Tax Regime In Italy : Not For Everyone
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- เผยแพร่เมื่อ 2 ธ.ค. 2024
- The 7 percent tax regime for retirees in Italy may not be suitable for all individuals due to variations in income sources and financial circumstances.
Different taxpayers may have diverse sources of income beyond retirement pensions, such as investments or rental properties, which could be taxed differently.
Implementing a one-size-fits-all tax plan risks overlooking these complexities and may not adequately address the diverse needs and situations of taxpayers.
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Studio Rigo T&A
60 Via Aeroporto Angelo Berardi
37138 Verona (VR) - ITALY
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Host: Paolo Rigo
Producer: Studio Rigo - Media Division
Cinematographers/Editors: Studio Rigo - Media Division and Marketing Division
Two things I wonder about. Is there an age requirement to be considered retired? Also, what if I have a holiday home in northern Italy and want to spend several months there. How much time do I need to spend in my main domicile in a qualifying region to stay compliant with the tax regime?
Good questions! No age requirements, as long as you can consider yourself retired officially. And the latter, more than 183 days registered to the Anagrafe of the city in the South
Ask yourself 2 questions:
1. What is going to happen after the 10 years of 7% taxes ends? Then, you will be subject to Italy's regular rates, as much as 45% on income of, say, 100K. That's not how you plan "retirement." You'll be forced to NOT become a tax resident, which means you cannot stay there more than either 180 days or 90 days. You cannot live there full-time after that.
2. What happens if Italy decides, in the future, to end the program? Well, you'll still be in the 7% bracket for the remainder of your 10 years. BUT after that, nobody will want to move to Italy for the tax break, which means the house you bought to "retire and live the good life" will be worth MUCH LESS because there will be no buyers. And you'll still need to not become a tax resident, which means you cannot live there full time anymore.
The sad but plain fact is that the EU doesn't NOT want any member states to become tax havens. So, it will end if the EU has its way, and that is more likely than not.
Thank you. How does this tax regime deal with other taxes such as wealth hand inheritance taxes?
Inheritance tax remains the same, limits and tax free areas too. Wealth tax is out, one of the big benefit of the 7 percent is getting the free ticket from that annoying tax
Excellent video!
Great video, i already knew (i am a Dane) that spending more than 6 monthes in Italy a year and having an adress there, do can make me eligble for taxing only in Italy (Denmark has a tax agreement with Italy)
Good , informative video. Thanks! I have a conceptual problem with this regime. The whole idea is to re-populate certain regions/towns of Italy, yet the regime is over after 10 years. So, does the government expect those that use the system to remain in the small villages out of sheer love for the communities? I'd consider such an important change in my life IF AND ONLY IF it is a permanent benefit, otherwise I pass.
The other issue that surfaced for me out of this video is the potential for double taxation. As a foreign investor in the USA, I get taxed with 30% on dividends/interest. Currently, many countries, including Italy, have treaties with USA to avoid double taxation. It seems like this is not the case for this regime. So, in my case it'd be 30+7. If I live anywhere in Italy I'd pay 26% on my US based dividends with the potential to avoid the double taxation.
My father was one those Italian that migrated to America after WW2 and I'd always been in love with my father's land, but after many trips and my son leaving there it pains me to accept that italian politician are pretty useless. This regime is one such example. It would be great to know how many people have enrolled in the 7% regime.
Again, thanks for the video.
Excellent advice. Paying 7% is wonderful, but living in many of the qualifying towns/villages might not be. Happiness is not just a tax rate.
This regime looks very good and we are seriously considering moving to Puglia after my retirement. However, I am not sure how the double taxation agreements would work in my case:
- I will receive a pension from Sweden which will be subject to a tax-at-source.
- I will receive another pension from Norway, also subject to source taxation in Norway.
- I reside in Switzerland where I will also receive a pension. As long as I am a Swiss tax resident, I will be able to withdraw the taxes paid in the other two countries and pay only the Swiss taxes.
- In addition, I receive dividends from shares in Swiss companies which are subject to a 35% withholding tax.
How would the 7% system work in my case? Will I be able recover the withholding taxes paid in Norway, Sweden and Switzerland and then pay the flat rate of 7%? Or would it be more convenient to keep my tax residence in Switzerland?
We're sorry we cannot provide such an answer here. Generally speaking, the 7 percent is something you apply on gross amounts, no foreign credit given
very good information but your sound is very low and hard to hear
I’ve been very serious about a move here, visits, house views etc. uk pension. Money in uk bank, 2rentals. And I believed I’d be a non resident for tax purposes. But it would seem, after due diligence and glad I did that all is not what it seems. Id be taxed in uk at 40% of rental income as just over the threshold. Then have to pay 7% gross on this rental income from uk. So 47%.
No credit given. And then if buy house in area to assist/repopulate, and help italy in 10years, have to review my position. Higher tax. On uk, and income, a wealth tax that’s just increased, and stuck with house I probably can’t sell as no one will want to buy it as not fiscally prudent. So is deterring me from doing this as be paying more. Unless there is a solution? Or other way to relocate under this scheme?
Bring no money in?
Sell houses in uk?
Invest in other counter or avoid EU all together?
How can we answer that?
Another good video! If I understood correctly, to qualify for the 7% rate, a person could either rent or purchase a place to live as long as it was in one of the southern regions and the town has a population of under 20,000?
Correct, buying is not necessary
We want to sell our house and stop working in June 2025. At which point we would move to a 7% tax town. If we move before July 1 will we pay 7% on our Canadian income, house sale and pension or would it be best to move after and start the tax year in 2026?
And if the 7 percent won't be there in 2026? Also we're not sure you have to pay something for the big sale. When did you purchase the property? Less or more than 5 years so?
@@StudioRigo Yes, we have owned the house for 8 years.