I can be contacted via email at nancy22314 at yahoo dot com. I am always glad to hear from like-minded folks and if I can help or answer any questions please let me know.
I can be contacted via email at nancy22314 at yahoo dot com. I am always glad to hear from like-minded folks and if I can help or answer any questions please let me know.
Hi Carlo, no there is no provincial tax. We don’t pay property tax on the house. We pay a garbage tax every year. And car tax. And we pay income tax. The rates are higher here so wee don’t ever owe any US tax. Of course there is VAT but that is built into everything you buy. Like US sales tax. Even though it is 22% the cost of living is still less here than there.
But the state tax is interesting because unless you move and establish residency in ANOTHER US STATE the state considers you a resident and tax payer. They don’t recognize moving to another country as establishing residency elsewhere. There are several “hard to get away from” states. One is Virginia. I believe Colorado and California are as well. I can tell you what we did in an email sometime.
Thank you, Nancy. I just wanted to make sure you weren’t referring to some Italian Provincial “state” taxes. I figured you were not required to pay U.S. State taxes as you are not a resident of any U.S. State. I’ve always thought it’s kind of sad that you have to pay U.S taxes at all as you are not a resident of the U.S. I guess maybe you do make use of U.S. State Department and Embassy or Consulate services by holding a U.S. Passport–but you do pay fees for that. And I suppose they would help to evacuate you if it ever came to that. Fortunately, just like our experience in Germany, Italian income taxes more than offset U.S. Income Tax in form of tax credits per the tax treaty.
Carlo,
We don’t pay any state tax since we own nothing in Virginia, and they don’t have state/regional taxes here
Nancy, when you say you don’t pay “state” tax, what “state” are you referring to? Umbria?
Hello Carole, well, we’ve been here 10 years and we know lots of people and we know the real truth. You do have to pay tax in Italy on your social security if you stay longer than 183 days a year, or are a registered as a resident here. It is clear in the U.S./Italy tax treaty. The income is taxed on a sliding scale. From zero to €28,000 it is taxed at 23%. From €28,001 to €50,000 it is taxed at 38%. And above €50,000 it is taxed at 43%. We don’t pay property tax on our home. We no longer pay state tax. Medical care is very inexpensive, cost of living here is probably 1/3 of the US for high quality of life. These things balance out the tax. The taxes pay for all the things you’ll enjoy about living in Italy, so we all pay for them!
HI Nancy. I hope you have enjoyed your summer, despite the high temps! I am curious to what you have been told or learned regarding US citizens paying taxes on their SS Income in their retirement lived out in Italy. Whether a tax resident or even as a new Italian citizen (dual citizenship), what is your understanding for a US citizen who earns no money now anywhere and has zero taxes to pay in the US, and never earned income anywhere but the US during their career? I appreciate any information you have gathered along the way, which I know very well sometimes differs depending on the source! 😜. Many thanks, Nancy!!! Carole