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AMERICANS IN ITALY

Americans in Italy: How to vote from abroad and getting professional help with taxes

How can you vote as an American living abroad, and should you seek out professional help with your taxes? We explore in our latest Americans in Italy newsletter.

When and how can you vote in the upcoming presidential elections?
When and how can you vote in the upcoming presidential elections? Photo by Hannah Peters / Getty Images via AFP.

Welcome to our regular look at everything you need to know about life in Italy for The Local’s readers from the US. This newsletter is published monthly and you can receive it directly to your inbox before we publish by going to newsletter preferences in ‘My Account’ or following the instructions in the newsletter box below.

As the primaries start up across the United States, Americans in Europe are taking steps to make sure they’re set up to vote in the 2024 presidential elections.

All registered US citizens can vote in the November 5th election, but to vote in the primaries, you’ll need to find out whether you’re eligible for an absentee ballot for the state where you last lived in the US.

Each state’s rules and processes are slightly different, but luckily there are plenty of groups that offer help to Americans abroad in getting registered, such as the nonpartisan US Vote Foundation.

When it comes to requesting an absentee ballot, the earlier the better: you can download the full voting calendar for 2024/2025.

How Americans in Europe can vote in the US primary elections

A US flag flutters in Deauville, northwestern France (Photo by LOU BENOIST / AFP)

More and more Americans living abroad have renounced their US citizenship over the past 10 years.

That’s not just because the US is one of the only countries to tax on the basis of citizenship rather than residence, but because after the passage of the Foreign Account Tax Compliance Act in 2010, many non-US financial institutions closed their doors to US clients.

“FATCA effectively turned all of the world’s non-US banks and financial institutions into agents of the US Internal Revenue Service,” one Europe-based American told The Local.

Now, some US citizens are campaigning to put an end to citizenship-based taxation.

“We believe that the key concerns of Americans who choose to live abroad can be best addressed by severing citizenship from tax residency,” said Doris Speer, president of the Association of Americans Resident Overseas.

Why more and more Americans in Europe are renouncing their US citizenship

Filing taxes in two countries can be a headache for Americans based in Italy. Getty Images via AFP.

In the meantime, many Americans living in Italy who’ve held on to their citizenship have to navigate filing annual tax returns in two different countries.

Readers in this situation often tell us they turn to professionals ensure they comply with the rules and aren’t overcharged. But is this a service worth paying hundreds (if not thousands) of dollars for?

“Yes, IF they know what they’re doing!” said one reader.

“Hire tax professionals in both countries, your life will be much easier,” says Eija Trees in Collepasso.

William Searles in Puglia says he fills out his own forms using TurboTax “as our financial situation is simple,” but adds that he would seek out professional help “if we had more complex issues.”

Americans in Italy: Is it worth paying for professional help with your taxes?

Have your say: If you’d like to share your opinion or tell us about an experience you’ve had while living in Italy, please leave a comment below this article or get in touch by email.

And if you have any advice for other American readers who are considering moving to Italy, or questions of your own, you can add them to our ongoing survey here.

Thanks for reading and please get in touch with us by email if you have any feedback on this newsletter.

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AMERICANS IN ITALY

How much money do Americans need to become residents in Italy in 2024?

If you're a US citizen who's looking to move to Italy on a retirement or digital nomad visa, here’s how much money you need to be allowed to live in the country.

How much money do Americans need to become residents in Italy in 2024?

From Edith Wharton to Gore Vidal, a number of famous Americans down the decades have fallen in love with the Italian lifestyle and made Italy their second home.

Though Italian immigration policies are stricter than they once were, US citizens can still obtain residency in Italy, even if you don’t have family ties or a job offer.

As of 2024, Italy has more than one visa available to self-employed or remote workers from outside the EU, and others for retired people and investors.

What you will need for each of these is a minimum annual income sufficient to reassure the Italian authorities that you can support yourself financially without the assistance of the Italian state.

Here’s what those thresholds are in 2024.

Elective residency visa

Often known as Italy’s retirement visa, the elective residency visa, or ERV, is for people who don’t need to work (you’re not allowed to work on this visa), and can support themselves on a passive income.

The government’s official minimum threshold is €31,000 per person or €38,000 per married couple plus five percent per dependent minor.

However, as Italian immigration experts have told us in the past, individual consulates have the power to raise this limit much higher than this.

READ ALSO: Five expert tips for getting your Italian elective residency visa approved

Giuditta Petreni at Mazzeschi Legal Counsels says that in her experience it’s “typical” for consulates to require three to four times the official threshold.

Digital nomad visa

As of April 2024, Italy finally has a digital nomad visa along the lines of those offered by countries like Spain and Portugal.

The decree doesn’t provide a number, but says that an applicant’s annual income must be no less than three times the minimum amount that would exempt them from paying for healthcare.

According to multiple immigration experts, that amounts to just under €28,000

Nick Metta from Studio Legale Metta notes that the decree doesn’t specify that this income has to be from work, meaning that in theory it could come “from any source, for example, rental income, corporate dividends, etc.”

READ ALSO: Q&A: Your questions answered about Italy’s digital nomad visa

As with the ERV, he cautions that “each Italian Consulate might apply its own interpretation about qualifying sources of income and might require a higher amount as well.”

Investor visa

As you might expect from the name, an investor visa requires the largest outlay of any of these permits.

The scheme allows Americans and other non-EU citizens the right to live in Italy if they meet the key requirements, namely a minimum investment of €250,000 to €2 million in certain start ups, companies, charities or government bonds.

Unlike other Italian visas, the investor visa doesn’t require the holder to make Italy their primary place of residence.

You also don’t need to spend the money at the outset; according to Giancarlo Ostetto from the Italian office of Lexidy Law Boutique, “the Italian investor visa is considered a safe option as you pay the investment three months after you get your visa rather than beforehand.”

Self-employment visa

According to the Italian consulate in London, Italy’s self-employment visa requires an annual income “higher than the minimum level provided by the law for exemption from participation in medical and health public assistance” – that is, €8,500.

You might be wondering why anyone would choose to apply for the new digital nomad visa over the self-employment visa given how much lower the income threshold is for the latter.

The answer is that unlike the digital nomad visa, Italy’s self-employment visa is subject to annual quotas that hover around 500 per year.

This, combined with the fact that consulates tend to be very hesitant to approve the visa without proof of a stable and substantial income, makes the self-employment visa notoriously difficult to obtain in practice.

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