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AMERICANS IN ITALY

Americans in Italy: Consulate backlogs and what Italian citizenship means for your tax bill

Applicants for Italian citizenship via ancestry in the US face long waits for an appointment, plus what are the tax implications of dual citizenship? We explain in our latest Americans in Italy newsletter.

How can those applying for ancestry-based Italian citizenship get around the ever-increasing backlog?
If you're applying for Italian citizenship, there's a lot to consider. Photo by Vincenzo PINTO / 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.

A large number of The Local’s readers tell us that they have, or are planning to apply for, Italian citizenship.

Most say that they’ll be applying via the ancestry route, which is especially common among our American readers, whether they live in Italy, the US, or elsewhere in the world.

There are plenty of benefits to becoming an Italian citizen – and therefore a dual national – and few possible drawbacks. 

But it’s not an easy process. And it’s certainly not cheap, with some readers from the US telling us they’ve spent $15,000 or even more in total between apostilles, translation fees, consulting fees, flights, accommodation in Italy, and hiring local consultants on the ground.

It doesn’t always cost that much, but even those who face lower costs often report that getting all the required documentation together feels like an uphill battle.

So, particularly if you already have Italian residency, is having Italian citizenship worth the trouble and expense?

To help make it easier to decide whether dual nationality would be right for you, we’ve outlined the pros and cons to having Italian citizenship and how this differs from simply being an Italian resident (although you can, of course, be both).

What are the benefits of having Italian citizenship vs residency?

One common question we get from readers considering applying for Italian citizenship, via ancestry or any other route, is whether and how this could impact their tax obligations. Is getting Italian citizenship such a good idea from a financial point of view?

There is a common misconception that having dual nationality would make you liable to pay tax in both countries – or, at the very least, more Italian tax than you are currently paying. 

The good news is that in Italy, unlike in the US, taxation rules are not based on your citizenship.

Becoming an Italian citizen doesn’t necessarily mean becoming familiar with the Italian tax office. (Photo by ANDREAS SOLARO / AFP)

The Italian tax and citizenship experts we spoke to were clear that obtaining Italian citizenship in itself should not affect your tax obligations in Italy.

If you become an Italian tax resident, however, you need to pay Italian taxes regardless of your nationality. Find the details in our article below:

Will Italian citizenship mean I have to pay tax in Italy?

Once you’ve decided that Italian citizenship would be the right choice for you and you’ve begun the application process, the time this takes varies enormously depending on how you apply and where you file your application.

Readers in the US filing applications via ancestry at their local consulate have told us there’s a common problem: increasingly long wait times for an appointment to become available.

This has been an issue for years at some consulates. But some applicants tell us booking a slot is now “next to impossible”, and immigration lawyers say this is an issue they’re seeing more and more often in the US, as well as in South America and the UK.

Debi Holland, a dual US-Italian citizen in Chicago, said the city’s Italian consulate “is booked for two-plus years”.

She told us how she “tried for months to get an appointment and gave up” before ultimately travelling to Italy to complete the process.

Another reader reported: “The Los Angeles consulate has a SEVEN year waiting list for applications.”

“Don’t waste your time; hire an attorney in Rome,” they advised.

We looked at the issue of backlogs at Italian consulates abroad and how applicants are getting around the problem:

‘Next to impossible’: How backlogs are delaying applications for Italian citizenship

If you have a question about life in Italy as an US national, or any tips to share based on your own experiences, get in touch with either one via our short 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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For members

AMERICANS IN ITALY

Americans in Italy: Six hard facts about moving to Italy and the lowdown on Naples

What do you need to know about relocating to the US from Italy and what's it like to live in Naples as a US citizen? We explore in our latest Americans in Italy newsletter.

Americans in Italy: Six hard facts about moving to Italy and the lowdown on Naples

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.

From the food to the culture to the climate, there’s a long list of positives that come with a move to Italy from the US – but if you’re thinking of taking the plunge, there are certain practical considerations you’ll need to bear in mind.

Work, taxes, visas, healthcare and driver’s permits are some of the less glamorous aspects of life you’ll have to engage with if you’re serious about relocating.

Unfortunately, the US doesn’t have a reciprocal driving license agreement with Italy, meaning that after 12 months of residency, you’ll need to resit your theory and practical tests – in Italian – if you want to continue driving.

And while you might assume that being resident in Italy gives you instant access to free universal healthcare, the reality is a little more complicated, with some foreigners now subject to a minimum annual charge of €2,000.

Tax filing obligations, work opportunities, visas and residency requirements round off the list of factors to take into account if you’re set on moving to Italy.

Six hard facts Americans should be aware of before moving to Italy

Here’s what you need to know about moving to Italy as a US national. Photo by Who’s Denilo ? on Unsplash

With some of the highest crime rates and car insurance premiums in Italy, Naples tends to get a bad rap, despite its increasing popularity as an international tourist destination.

Americans interviewed by The Local about their experience of living in the southern city, however, had mostly positive things to say.

“People, ninety nine percent of the Neapolitans will give you the shirt off their back. They particularly like Americans, and they love kids,” says Thomas Braden, a New Jersey native who moved to the coastal city several years ago.

“I have made some amazing life-long friends here in Naples,” says Amy, who relocated from the US for a job.

“The thing about Neapolitans is that they either love you or hate you, there is no middle, and I admire that.”

‘They particularly like Americans’: What life in Naples is really like for foreigners

A view of the city of Naples and the Vesuvius volcano

A view of the city of Naples and the Vesuvius volcano. Photo by GABRIEL BOUYS / AFP

If you’re planning a summer holiday in Italy or are preparing to move, you may be wondering whether you can use your American Express card to pay for goods and services.

The answer is yes – to a limited extent.

While larger providers and chains typically will take AmEx, many smaller Italian businesses won’t accept the card due to high merchant fees.

It’s generally recommended to bring along a back up card such as Visa or Mastercard, then, if you want to avoid running into issues.

Can I use my American Express card in Italy?

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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