Moving to Italy might have become one of the top choices for expats, especially for high net worth individuals. This seems to be the case since the introduction of the Flat Tax System in 2017. An investment adviser who is dealing with expats in Italy can advise you on the financial impact your move to this sunny and beautiful country can have. This can be from both a tax and income perspective. Before you make any decision, it is important that your financial situation is thoroughly analysed taking into account the current financial environments.
Tax situation in Italy
For best tax planning strategies it is important you seek the advice from a local tax adviser. International investment advisers will be able to tell you about the general and overall tax situation in Italy. For more complex queries a local tax adviser is recommended.
The Flat Tax System is attracting more wealthy individuals. This is an intriguing fiscal regime set up for new Residents only who are non-domiciled. With this regime, you are exempt from Italian tax on foreign income if you pay a fixed amount of €100,000 a year. You also need to have lived out of Italy for the last 9 years. No tax will have to be paid on the value of real estate and financial investments.
The Italian government spotted an opportunity following on from Brexit and following on from the success of other countries who adopted a similar model. These countries include Cyprus, Malta and Ireland. Italy is just looking to attract some of these wealthy investors. With Brexit on the horizon, the non-domiciled living in the UK for more than 15 years might no longer benefit from current tax privileges. Italy is looking to benefit from this opportunity. Due to the current uncertainty post Brexit, an investment adviser in Italy will be able to advise if relocating your tax domicile to Italy is suited based on your personal circumstances.
Advantages of retiring in Italy
Compared to your current country of residence, Italy might well provide a lower cost of living with affordable property prices so you can buy the house you have always dreamed of. I don’t even have to mention that Italy has amazing weather, stunning landscapes and natural beauty. There are great art, historic and cultural cities so you will never have a dull moment.
Italian retirement visa
Have you decided to retire to Italy but are unsure how to proceed? Have you already looked at your retirement and is it in line with your financial goals? Are your savings sufficient? Do you require pension consolidation and flexi-access? Have you looked into applying for the Italian retirement visa? There are a lot of articles on the Elective Residency Visa. You can find several ones online so do some research on this. It does tend to be a tedious and long process. Inform yourself on all the required information. You will most likely have to get in touch with an Italian Consulate closest to you and begin the process. Furthermore, you will basically have to prove that you can sustain yourself in Italy from your savings provisions. If you have one or several UK pensions which you would like to consolidate and have access to we can assist you with this. We have recently written an article on pension transfers to Italy so you can read this for further information.
What are the next steps?
If you require help with your retirement choice and don’t know how to start the process it is best you look for advice from an independent financial adviser. If you are looking to have a durable and personal relationship with your adviser, it is best you search for a small independent financial advisory firm. Whomever you decide to go with, make sure they are authorised to offer advice in Italy for better pension, education and savings plans. It is important to remember that banks have limited product offerings. They will never search for the entire market for bespoke client solutions. Get in touch with Harrison Brook today and see how we can assist.