I wanted to share the following information that I have received. My husband and I are trying to ascertain our tax liability once we are living in Italy full-time, so we can plan our annual budget.
I have been in touch with an American tax attorney in Rome who has provided me with this information below in response to my questions.
"The ordinary tax rates that would be applicable to, for example, pension and social security income, are as follows:
from up to rate
0,00 15.000,00 23,0%
15.000,00 28.000,00 27,0%
28.000,00 55.000,00 38,0%
55.000,00 75.000,00 41,0%
75.000,00 over 43,0%
There are additional regional and municipal taxes that are due on top of the above.
As a general matter, a flat tax rate of 26% is payable on investment income but it would be necessary to look at the sources of income to determine whether that would be the case for your income. Also consider that there is a wealth tax due by tax residents on foreign financial accounts and foreign real estate.
Note: Italian annual tax returns must be filed by individuals. Joint returns are not available.
The tax rates are applied to each individual taxpayer. Any joint assets are attributed 50% to each person. Any joint Italian taxes would be creditable 50/50 against Italian taxes (assuming that a foreign tax credit would be available pursuant to Italian law)."
I have been in touch with an American tax attorney in Rome who has provided me with this information below in response to my questions.
"The ordinary tax rates that would be applicable to, for example, pension and social security income, are as follows:
from up to rate
0,00 15.000,00 23,0%
15.000,00 28.000,00 27,0%
28.000,00 55.000,00 38,0%
55.000,00 75.000,00 41,0%
75.000,00 over 43,0%
There are additional regional and municipal taxes that are due on top of the above.
As a general matter, a flat tax rate of 26% is payable on investment income but it would be necessary to look at the sources of income to determine whether that would be the case for your income. Also consider that there is a wealth tax due by tax residents on foreign financial accounts and foreign real estate.
Note: Italian annual tax returns must be filed by individuals. Joint returns are not available.
The tax rates are applied to each individual taxpayer. Any joint assets are attributed 50% to each person. Any joint Italian taxes would be creditable 50/50 against Italian taxes (assuming that a foreign tax credit would be available pursuant to Italian law)."
