Can someone clarify this?
How Can a U.S. Expat Retiree Qualify for Special Italian Tax Treatment?
Individuals who qualify under the Article 1 (273-274) of Law N.145/2018 (so-called Legge di Bilancio 2019) may reap the benefits of this tax regime for 10 years. The exemption begins in the year in which the tax residence is transferred to Italy and the following nine years there-after. In order to qualify for the tax incentive, an individual must be a non-resident of Italy (regardless of nationality) who receives a non-Italian pension (public or private sector) and meets the following basic criteria:
Has not been a tax resident of Italy for the last 5 years.
Transfer their tax residence to the South of Italy in a qualifying municipality with a population of 20,000 or fewer residents. The qualifying regions are Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, and Puglia. Bear in mind to qualify as a tax resident you must spend at least 183 days within the country.
Previously been a resident of a country that has a tax treaty arrangement in place with Italy.
Individuals who meet these requirements may qualify for the special 7% Italian flat tax regime. Remember that this special tax rule does not apply to all of Italy and only the specific regions mentioned above. A move to other parts of Italy will require more sophisticated tax planning.
How Can a U.S. Expat Retiree Qualify for Special Italian Tax Treatment?
Individuals who qualify under the Article 1 (273-274) of Law N.145/2018 (so-called Legge di Bilancio 2019) may reap the benefits of this tax regime for 10 years. The exemption begins in the year in which the tax residence is transferred to Italy and the following nine years there-after. In order to qualify for the tax incentive, an individual must be a non-resident of Italy (regardless of nationality) who receives a non-Italian pension (public or private sector) and meets the following basic criteria:
Has not been a tax resident of Italy for the last 5 years.
Transfer their tax residence to the South of Italy in a qualifying municipality with a population of 20,000 or fewer residents. The qualifying regions are Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, and Puglia. Bear in mind to qualify as a tax resident you must spend at least 183 days within the country.
Previously been a resident of a country that has a tax treaty arrangement in place with Italy.
Individuals who meet these requirements may qualify for the special 7% Italian flat tax regime. Remember that this special tax rule does not apply to all of Italy and only the specific regions mentioned above. A move to other parts of Italy will require more sophisticated tax planning.
