Italian Taxes Explained for A US Retiree Living in Italy

One of the most common questions that come up on our channel is questions around the cost of Taxes for a US resident retired in Italy. So, in this video, I explain Italian taxes for a US retiree living in Italy.

I hope this video helps and answers many of your questions on taxes for a US retiree, living in Italy.

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[FedrickWhite-joed]

A lot of retirees who move there end up blindsided. The Italian tax system is nothing like what we’re used to. It’s not just about income tax—there are wealth taxes, inheritance taxes, and even taxes on property abroad. It’s easy to overlook something and wind up paying way more than you should.

[nickrugg]

Your videos are great! Thanks so much! And I hate to be “that guy”, but Bari has the emphasis on the Ba, not the ri…. 👍🏻😁

[pifferaio]

Greetings Chip. Stumbled on your channel and enjoy your talks. I am an Italian, who left and lived in the USA for 28 yars and now returned home to Italy and am so happy. I agree on everything you are experiencing. Maybe we'll cross paths some time! Ciao!

[JeffreySlough]

Thanks so much for this. You have a gift for making things make sense!

[EricOnYouTube]

Oh, I've been wanting to see this topic popup.

[secretariatgirl]

I may be contacting soon as I may go to Italy as a dual citizen rather than a resident...fingers crossed as my case is now under final preparation! I'm heading to age 73, single (female)..

[latinhellas]

I had heard of this scheme before and I was not convinced, and after watching this video I am still not convinced, perhaps even more unconvinced.

[Freddels]

Distributions from ROTH IRA's are taxed in Italy. Also, if you are taxed at the 7% rate in Italy, then you get that as a credit on your U.S. taxes but you'll still have to pay the difference to the U.S.

[DeanRamser]

Bonjourno, Chip!
Grazie! Dean & Cindy

[KashEnglishTeacher]

Thanks for this video! I’m not of retirement age, but I’m a US/ Italian dual citizen and I’m living in Italy now. It’s very interesting information!

[carlosballi]

Thanks for your great info, we are Carlos and Alice Balli from Victoria Texas we would love to retire to Italy next year if possible

[Kenny-bjzq]

Excellent video looking at retiring in 5 years to never to early to start learning and you brought a lot of useful information as Taxes is one my concerns the other is Hospital care.

[ginalyons]

It is my understanding that a portion of social security may be taxed based upon your income (there is a formula to determine what if any needs to be reported as income and taxed).

[jaimehidalgo]

im new to your channel. looking fwd to adding Italy as one of 2 final destinations for my retirement. thanks for all the helpful info. Im looking at 6-7 yrs before I retire so I have some time. thanks again

[adrinehbarghi]

Thank you very much for the information

[O-uq]

As an early retiree who lives off of investments, but not a pension (for another 15 years) this is disappointing. Even if it did, kicking the can down the road, so 45% taxation hits when I’m 10 years older and less flexible feels like a poor decision. By treaty, France doesn’t tax US pension/capital gains/rental income, which is hard to beat. Health care costs in Europe are so low, even if paying out of pocket, that it’s only really relevant as a tax offset if your income is fairly low.

[kamankat]

Thank for all these amazing information

[ariesescudero]

Great info I’m still undecided between Spain or Italy I was stationed on both places as US Navy in Sicily to be exact I visit Italy every summer I’m retired military and covered by Tricare anywhere in the world it all comes to taxes

[myrealtorphil]

Thanks you . This is amazing information sooo helpful

[susiefedele]

I do not see the 7% as a low number unless you don’t have much income and the 7% incentive is an incentive to live mostly with expats because Italians left those Towns, so what’s the point? The 43% on $100k thereafter is extremely high even for someone making $100k so even if you pay the difference between 22 or 28 % paid in the US, you’ll pay the difference to Italy under the tax treaty. This incentive is geared more favorably for those who don’t have many assets. For the most part, the US doesn’t have a wealth tax on your after tax assets. My advice is to live where you want and never stay 183 days.