My husband and I are planning to retire next year and move to Italy. I've been OCD on researching every aspect but still have many questions. Sounds like this forum has a lot of collective knowledge that will be extremely helpful.
We will be 60 next year, rent our home in California about a month after we are done working.. We have a reservation on Cunard's QM2 with our 90 Lb chocolate lab. For July 20, 2018
so here's question 1:
There's been a lot of discussion on taxes in Italy. Based on my research, I'd like feedback confirming whether are not my assumtions are correct.
1. Tax on world wide real estate- since our property taxes are more than 1.2%, no additional tax paid to Italy.
2. Since we will be living off non retirement earnings, dividends, and assets, only dividends and capital gains will be taxed in Italy. Confirm dividends and Gains from Ira or Roth accounts are not taxed if reinvested in same accounts
3. Tax on world wide investments. This includes non retirement investment accounts, IRAs and Roth IRAs - please confirm
4. If we wanted to roll IRA funds into Roth IRAs, would the IRA be taxed as income as it would be in US? Or just taxed in US?
5. Since we would not arrive in Italy until next August, we would not have to file or pay any Italian taxes for 2018. Less than 183 days in Italy.
6. Tax on SS is not an issue as we won't start that until we are 67 or 70 and would likely be back in US by then.
7. Rental income- can property taxes, insurance, HOA dues, property Mgt fees be deducted from gross rental income? So we pay tax as income only on net rental income?
Thanks in advance for any feedback.
We will be 60 next year, rent our home in California about a month after we are done working.. We have a reservation on Cunard's QM2 with our 90 Lb chocolate lab. For July 20, 2018
so here's question 1:
There's been a lot of discussion on taxes in Italy. Based on my research, I'd like feedback confirming whether are not my assumtions are correct.
1. Tax on world wide real estate- since our property taxes are more than 1.2%, no additional tax paid to Italy.
2. Since we will be living off non retirement earnings, dividends, and assets, only dividends and capital gains will be taxed in Italy. Confirm dividends and Gains from Ira or Roth accounts are not taxed if reinvested in same accounts
3. Tax on world wide investments. This includes non retirement investment accounts, IRAs and Roth IRAs - please confirm
4. If we wanted to roll IRA funds into Roth IRAs, would the IRA be taxed as income as it would be in US? Or just taxed in US?
5. Since we would not arrive in Italy until next August, we would not have to file or pay any Italian taxes for 2018. Less than 183 days in Italy.
6. Tax on SS is not an issue as we won't start that until we are 67 or 70 and would likely be back in US by then.
7. Rental income- can property taxes, insurance, HOA dues, property Mgt fees be deducted from gross rental income? So we pay tax as income only on net rental income?
Thanks in advance for any feedback.
