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LIVING IN ITALY

Are English speakers more likely to be targeted by scams in Italy?

There's no shortage of stories about tourists or new residents being ripped off in Italy. American writer Mark Hinshaw in Le Marche asks how common such scams really are and whether English-speaking foreigners are more likely to be targets.

Are English speakers more likely to be targeted by scams in Italy?
A tourist scam or harmless fun? Rome has now banned people from dressing as Roman centurions and asking tourists for money. Photo by Alberto PIZZOLI / AFP

Another foreign resident here in Italy recently related to me a tale of woe from one of her friends who was taken advantage of by a local contractor. She felt she was significantly overcharged for work done and wondered if others had similar experiences. Facebook expat groups are filled with stories of visitors and residents being ripped off, with the reader possibly inferring that this must be a common occurrence.

Obviously, it’s hazardous to make generalizations. Regions differ. Cities and towns differ. People differ. In any country or culture, one is going to encounter people who are scammers, petty thieves, or just plain dishonest.

For many hundreds of years, the Italian peninsula has been inundated by waves of tourists and newcomers from countries that are seen as wealthy. Indeed, it was a prime destination for men and women from aristocratic families on a continental Grand Tour. For the past six decades, young people from wealthier countries have been doing their own low-budget version of this rite of passage, with roving backpackers in shorts and hiking boots seen in every city, large and small. 

Whenever newcomers are seen displaying money – paying for a coffee with a credit card, buying expensive watches or shoes, and eating in overpriced, tourist-oriented restaurants – someone is going to view them as easy pickings. 

There is certainly no shortage of scams at all scales. There are the minor annoyances like the guys in Rome dressed as gladiators who are eager to take pictures with you, only to then insist upon ten euros for the privilege. There are also the listings online of houses that don’t reveal the extent of earthquake damage and want a top-drawer price. Warning: “Caveat emptor.”

READ ALSO: How to avoid hidden traps when buying an old property in Italy

Tourists are the easiest of marks. Thieves and scammers know they are likely to get away before being discovered. Or the victim won’t know how to find the police and report it. Or worse, the police will respond but with shrugged shoulders. 

One episode in the Netflix series, Master of None, captured such an interchange beautifully: the carabinieri were more interested in a fragrant dish made by the thief’s mamma than in solving the crime.

But when someone chooses to live in an Italian town, the dynamic is different. Many Italians are used to foreigners coming during certain seasons to escape undesirable weather in their own country, then disappearing for months. 

In our region locals even have a specific, mildly derisive word for such people: pendoli, like pendulums that swing back and forth. It took us a full year for our neighbors to be convinced that we were staying put.

One obvious problem that generates ill will and a suspicion of being cheated is being unfamiliar with different practices. 

For example, it is not common for a contractor to clean up a work site once a project is completed, as part of the primary contract. This is common practice in the US, but in Italy, that is handled through another separate contract sometimes with another company. So if a foreigner is expecting the service and it doesn’t happen, he can feel that he was tricked into paying more.

Cheap Italian properties aren’t always what unsuspecting buyers hope. Photo by Ehud Neuhaus on Unsplash

Another problem, as I see it, is that many English speakers choose to only develop relationships with other English-speaking expats. Worse, some exhibit a sense of entitlement or even superiority toward service workers, bureaucrats, and shopkeepers. The word gets out fast, especially in small towns.

READ ALSO: From bureaucracy to bidets: The most perplexing things about life in Italy

There’s also the fact that – almost unavoidably  –  foreigners are wealthier than locals. Having a second home in Italy is a sign of wealth. Certainly, a big holiday home with a large pool and gated entry is a dead give-away. Again, the word gets out fast, sometimes to criminals. We have a friend who went on vacation only to return to find his house in the country had been stripped of everything, including the heating system. The thieves pulled up with a big truck and went to town unimpeded. 

It’s vitally important for newcomers to establish relationships with locals. Of course, that means learning the language. Not necessarily all the conjugations of verbs but enough to make social connections. On our little lane with a dozen houses, everyone looks after each other. It would be very difficult for a stranger to pull something off.  

In our five years of living in this village of 1400 people, we have never felt that we were taken advantage of.

We know that we are perceived as the ‘wealthy Americans’ in town. We cannot avoid it. We live in a house that used to hold two big families. We have a panoramic view that everyone remarks on. We receive many packages, with delivery people asking shopkeepers and passersby where we live. They all know.

According to ISTAT, the medium income for Italian households is barely more than 30,000 euros per year. And that is very often with more than one person working. Accordingly, by Italian standards, we ARE wealthy, even though we do not consider ourselves to be. (In the US, our income would be considered close to poverty level in some places.) So, relatively wealthy Americans cannot help but stand out.

READ ALSO: ‘How I got an elective residency visa to retire in Italy’

Although we have never been victimized (knock on wood), I have no doubt that foreign residents in other towns have been. 

It may be more common in parts of Italy with seasonal hordes of tourists. Foreigners can be seen as easy marks, as they don’t understand the language and sometimes are careless when it comes to showing signs of wealth. 

Some people seem to fall for scams. I once watched, from an upper-story window, tourists being repeatedly robbed of their money by a shell game.

It was like a bizarre theatrical performance, with shills planted in the audience who would ‘win’ their game. Within minutes, with lightning-fast shuffles, hundreds of euros were taken from unsuspecting players.

A mocked-up ‘shell game’: one way unsuspecting tourists are parted from their money in Italy. Photo: Mark Hinshaw

Unfortunately, as an expat, one can be both welcomed by some people and taken advantage of by others. But that’s happened to me in New York, San Francisco, and Chicago – places I know well in my own country. One cannot always be vigilant. Or paranoid.

Mark Hinshaw is a retired city planner living in Le Marche with his wife. A former columnist for The Seattle Times, he contributes to journals, books and other publications.

Member comments

  1. As a tourist people tend to make themselves targets, with being burdened with too much luggage, wearing way too much jewellery and not doing research beforehand with regard to surroundings. Tourists become stupid when on holiday, why on earth would you even play the shell game, you are never going to win and eating in high tourist spots, you are always going to pay high prices. We have been to Italy numerous times and never been targeted with scams or pick pocketed, or felt ripped off and always felt safe, no matter what region we have been in. There are opportunists in every country, looking to scam tourists, it is up to the individual they become a victim or not, just use common sense and be aware of surroundings.

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TAXES

The bumper Italian tax guide for 2024

From filing deadlines and rules on foreign income to second homes and tax breaks, these are the things you need to be familiar with as Italy's tax season gets underway.

The bumper Italian tax guide for 2024

With income declarations now open in Italy, there are several details of the Italian tax system that you need to know, especially if this is the first time you file.

From deadlines to rules on foreign income and assets to second homes, here is our guide to the 2024 tax season.

2024 tax deadlines

Late spring is generally the busiest time of year for Italian taxpayers as that’s when the window to file the yearly income tax declaration (or dichiarazione dei redditi) opens.

Barring some rare filing exemptions, anyone who’s considered an Italian resident for tax purposes (or fiscal resident) is required to file income taxes in Italy.

But even if you’re not an Italian tax resident, you may still have to file and pay Italian taxes on any income generated in Italy.

Depending on your personal tax situation and income source, you’ll have to file one of two forms, whose official deadlines for this year you can find HERE. The window to file either form is open as of May 20th. 

It is strongly advisable to keep the main income tax dates in mind as the Italian taxman shows little in the way of leniency when it comes to late filing and failure to file.

Besides income tax deadlines, there are two other dates you need to be mindful of if you own property in Italy. The first instalment of Italy’s tax on second homes IMU (Imposta Municipale Unica) is due by June 16th, whereas the second instalment is due by December 16th. You can find these and other key tax dates for 2024 in our calendar.

First-timers

If this is your first time declaring tax in Italy, your first task will be to request a codice fiscale (a personal identification number similar to an American Social Security number or a British National Insurance number) if you don’t already have one. Find a guide to doing that HERE.

The 2024 income tax declaration covers the 2023 tax year, which runs from January 1st 2023 to December 31st 2023. As a result, if you moved to Italy after January 1st 2024, you will not have to complete the declaration until next year.

On the other hand, IMU payments are always relative to the year when you make the payments – in this case 2024.

Online v paper

Most people in Italy file their tax declarations and make payments using the personal profile area (area riservata) of the Italian tax office (Agenzia delle Entrate) website. 

This is also where taxpayers can find a pre-compiled version of tax return form 730 (or modulo 730) – which is the income tax declaration form generally used by employees and retirees in Italy. 

Though most tax declarations can be filed online, there are provisions for people who don’t have internet access or are not comfortable completing tasks online. In this case, you can visit or call your local tax office and request paper versions of the forms, which you can then submit at the same office or, in some cases, at local post offices. 

Income tax brackets 

Italy’s income tax Irpef applies to employees, many self-employed workers (regular partita Iva holders, but not those on the flat tax rate) and pensioners.

The Italian government cut the number of available tax brackets from four to three last December, but the change only applies to income generated from January 1st 2024. 

This means that your 2023 income will be taxed based on the four-bracket system below:

  • Up to 15,000 euros: 23 percent
  • Between 15,001 and 28,000 euros: 25 percent
  • Between 28,001 euros and 50,000 euros: 35 percent
  • Over 50,000 euros: 43 percent

Like income taxes in many other countries, Italy’s Irpef is a progressive tax, meaning that you only pay the higher rate on the portion of your income that is over the relevant threshold (for instance, 43 percent on the portion of income exceeding 50,000 euros).

Foreign income 

It’s not unusual for foreigners in Italy to have some or all of their income coming from outside Italy – whether that is a pension paid from an overseas country, remote working for a non-Italian company or rental income from a property outside of Italy.

If you’re an Italian tax resident, you’ll be required to declare your global income – that is income generated not just in Italy but anywhere in the world. 

It’s important to note though that declaring your foreign income does not necessarily mean you will have to pay tax on it. 

Italy has dual taxation agreements with most countries, including the UK and US, meaning that if you have already paid tax on your income in another country, you won’t be taxed on it again – though you’ll still have to tell the Italian taxman about it. 

Foreign assets and bank accounts

Italian tax residents who hold financial assets abroad – this includes real estate, financial investments, unit trusts, and even foreign bank accounts – are required to declare them by completing the foreign assets section of their yearly tax return form (section W of form 730 and section RW of form Redditi PF).

Depending on the types of assets you own abroad, you may have to pay Italy’s tax on foreign real estate (IVIE) and/or a tax on foreign financial activities (IVAFE).

It’s worth noting that retirees who’ve opted for Italy’s special seven-percent flat tax rate are exempt from the requirement to declare (and pay IVIE and/or IVAFE on) foreign assets.

READ ALSO: How many people successfully apply for Italy’s flat tax for pensioners?

You can find further info about declaring foreign bank accounts HERE.

Tax breaks 

Italy has a number of tax breaks to help taxpayers, especially those with lower incomes, reduce their tax bill each year.

These are generally divided between tax deductions (deduzioni fiscali), which lower your taxable income, and tax reductions (detrazioni fiscali), which lower your final tax bill. 

Tax reductions for 2024 apply to anything from rent to public transport to education expenses, and include a 19-percent tax break on medical expenses applicable to amounts exceeding 129.11 euros. You can find a full list (in Italian) of tax reductions and deductions here

It’s also worth noting that Italy offers a number of favourable multi-year tax regimes for residents – these include the so-called ‘impatriate’ tax scheme and the seven-percent flat rate for foreign pensioners – as well as a number of home renovation bonuses.

Tax for second-home owners 

If you live outside of Italy but you own property in the country which you use as a second-home or holiday home, there are a few things to be aware of, with the first being whether or not you are an Italian tax resident. 

If you use your Italian property just for holidays then you probably won’t be. But if you tend to spend a significant amount of time in your Italian property, you should keep in mind that Italy’s tax office will consider you a tax resident if, for at least 183 days a year, you are registered with Italy’s National Registry of the Resident Population (or Anagrafe) or have your place of “residence or habitual residence” in Italy.

The other thing to consider is whether you have any Italian income through renting out your property, including on Airbnb. If you do, you will need to declare this income in Italy.

Finally, even if you’re not an Italian tax resident and don’t generate any income in Italy, you’ll still have to pay Italy’s property tax IMU (Imposta Municipale Unica), which is owed by all owners of second homes. You can find this year’s IMU deadlines HERE.

Getting help

If you’re completely daunted by the Italian tax system, don’t panic: help is available.

If you have a fairly simple tax situation (e.g. you have a single employer and no other sources of income) and speak some Italian, you may be able to get the assistance you need at one of Italy’s tax support centres (Centri di Assistenza Fiscale, or CAF).

READ ALSO: What is an Italian commercialista and do you really need one?

If, however, you are self-employed, are starting or operating a business, are earning income in multiple countries, or simply find the whole process too difficult, you may need the help of a chartered tax accountant, or commercialista in Italian. 

Please note that The Local is unable to advise on individual cases. Find more information on the Italian tax office’s website or seek independent advice from a qualified tax professional.

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