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PARLIAMENT

President’s barber: €99k state snippers overpaid

The €99,000 salary offered to long-serving barbers at Italian parliament is “excessive”, a Rome barber who boasts the president as a client told The Local on Thursday.

President's barber: €99k state snippers overpaid
Domenico Lotorto first stepped in a barber shop at the age of six. Photo: Rosie Scammell

Barbers who have worked at the Italian parliament and senate are facing a pay cut, under the government’s spending review. But even after their salaries are slashed by a hefty €37,000, long-serving state-employed barbers will still be able to earn up to €99,000 a year.

Across the city, a barber entrusted with Italy's most august scalp said even the reduced salary was over the top.

“It's excessive,” barber Domenico Lotorto told The Local.

“They should earn the same as a normal worker there, with a salary based on the tariff from the national association of barbers,” he told The Local from his (privately-run) shop in central Rome.

As an early-morning customer stepped inside for his morning shave, just a stone’s throw from the Quirinale Palace, Lotorto said President Giorgio Napolitano is also a customer.

If the parliamentary system was applied to his work, he would more than qualify for the €99,000 salary. “I’ve breathed the air of a barber shop for 72 years!” said Lotorto proudly, having first stepped inside a barber’s at the age of six.

‘Unjustified privileges’

The parliamentary salaries have also been criticized by Italy’s civil servants union (Federazione Lavoratori Pubblici e Funzioni Pubblici, FLP).

Across the board salaries to parliamentary staff have been capped at €240,000, a move seen as “absolutely” justified by FLP.

The €99,000 offered to top barbers is however a sign that “unjustified privileges” will remain, Roberto Cefalo, spokesman for FLP, told The Local.

“But this is not the true Italian civil servant,” he said. “There are hundreds of thousands of people who work every day to guarantee security, services, justice and social support.”

Certain salaries may be too high, but Cefalo argued this is just one of many areas politicians needs to tackle.

The government must “transform the spending review into an opportunity for reform, not just a series of linear cuts that only hit workers,” Cefalo said.

When contacted by The Local, a spokesperson for the Italian parliament was not immediately available to comment on the salary cuts. 

READ MORE: Italy's state barbers' pay trimmed…to €99,000

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TAXES

‘How we moved to Italy and only pay tax on 50 percent of our income’

Italy’s impatriate tax scheme appeals to many foreigners planning to relocate to Italy, but how exactly does it work? One British couple who used it tell reporter Silvia Marchetti about their experience.

'How we moved to Italy and only pay tax on 50 percent of our income'

Thanks to Italy’s appealing impatriate tax scheme, John and Linda Baker, both 42, from Brighton, now pay tax on just 50 percent of their income – which is about as low as any Italian could ever dream of.

Both remote workers, John is a web designer working for UK clients, while Linda is a freelance copywriter.

In November they rented out their house in Brighton and moved to the Italian seaside resort of Amantea, in Calabria, where they bought a two-bedroom cottage in the countryside, far from the touristy coast, for €59,000.

“We applied for the impatriate tax scheme as soon as we realised we wanted to change life, quit the rat race and move to a sunny place where life was slower-paced,” John tells The Local. 

“It sounded like a great deal, paying tax on just half our income means we get to save a significant amount of money we would never have in the UK.”

This special tax regime for those moving to Italy was approved in 2019 and is available to people who move to any part of the country. Aimed at qualified and skilled foreign workers, it’s for both employed and self-employed people who become fiscal residents and reside in Italy at least 183 days per year.

READ ALSO: What is Italy’s impatriate tax rule and how is it changing?

The 50-percent tax relief on income applies for a maximum of five years and can be extended for another five.

The benefit is capped at an annual salary of €600,000, while no relief is in place for earnings over this amount. The exempt portion of income rises to 60 percent for a worker with at least one child under 18. 

The scheme has been amended over the past few years, and though it has become somewhat less appealing, it still gets plenty of interest. Italians living abroad can also apply and benefit from it. 

Italy’s government introduced the scheme mainly to lure back qualified Italian workers and researchers who had moved abroad. But those taking advantage of it are often foreigners longing to live in Italy.

The Bakers got help from an immigration legal expert in Rome, who sorted out the paperwork for them and filed their application to the Italian authorities. 

READ ALSO: If you want quality of life, choose Italy’s sunny south over the efficient north

“We could have applied directly from the UK but we thought it was better to hire an Italian professional on the ground, with deep knowledge of Italian bureaucracy and the required skills to navigate through procedures,” says Linda. 

The lowest tax band rate in Italy is 23 percent, while the highest is 43 percent. While the Bakers prefer not to disclose how much each one of them earns, they say they will be saving a lot of money, considering income tax in the UK hovers around 40 percent. The couple is confident that the two of them together could save up to €30,000 in taxes per year. 

With the extra money, the Bakers would like to buy another holiday home in Naples, so as to be closer to Rome.

READ ALSO: ‘Research and more research’: How do you choose the right part of Italy to move to?

They decided to ditch the UK due to soaring living costs, and because they wanted to live the Italian dream before they retired, while they were still actively working. 

“Usually when couples retire they start looking for a fresh start, but we did not feel like waiting until we were 60 or 70 to make the big leap and relocate to Italy,” says John. 

Amantea is relatively cheap. Dinner for two people is €35, while utility bills are among the lowest in Italy, adds Linda.

“There are also premium foods like Tropea’s red onions, Calabria’s famous chili peppers, and delicious pasta dishes which we could never even dream of back in the UK”, says John. 

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