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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.

Published: 22 June 2023 16:08 CEST
Updated: 24 June 2023 08:41 CEST
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

TRAVEL NEWS

Can I use my American Express card in Italy?

If you are travelling to Italy with an American Express card, there are a few things you ought to consider beforehand.

Published: 11 June 2024 14:27 CEST
Can I use my American Express card in Italy?

While many European establishments do accept American Express cards, outside of the US they are significantly less common and many businesses, especially smaller ones, refuse them. 

Why are American Express cards not accepted?

According to Forbes, it has to do with the fact that American Express is known for charging “higher merchant fees than other credit card networks.

“In other words: It’s more cost-efficient for many businesses (especially low-margin ones) to take Visa or Mastercard instead.”

The business magazine also noted that American Express credit card transactions made up just 4.61 percent globally, whereas Visa and Mastercard transactions were significantly more common – making up 38 percent and 24 percent of the market share respectively.

READ ALSO: Can I drive a friend or relative’s car in Italy?

What should I do if I have an AmEx card?

Travel blogs often recommend that AmEx holders bring along a Visa or Mastercard as well, in case they run into issues.

You can also consult American Express’s interactive map, which shows the businesses in Italy that definitely accept the card.

However, the map may not show every business that accepts AmEx, so feel free to ask (‘accettate l’American Express?’) before sitting down for a meal or making a purchase. 

You can also look to see whether the store displays an AmEx sticker in the window. 

Generally, American Express cards are less likely to be accepted in small businesses – neighbourhood restaurants, cafés or independent shops – due to the reasons outlined above. You have a better chance of your AmEx card being accepted in larger companies and chains.

AmEx is also accepted by Trenitalia and Italo, Italy’s two national rail companies, and is also accepted as payment by Rome’s public transport operator, Atac, to tap on and off the city’s buses, metros and trams.

Any other things to consider?

Contactless payment (often colloquially known as contact – as in, pago con contact) is becoming much more common in Italy, albeit only for lower-value purchases. If your AmEx card does not have the chip that allows you to tap and pay, then you may want to take cash out or bring another card along. 

If you still have an old-style card that requires swiping and signing, be aware that most smaller Italian businesses do not have this payment option.

ATMs should accept your AmEx card, so you should not have any issues being able to put in your PIN and take out cash, though there may be fees.

You’ll also want to look into the transaction fees associated with your card. Some AmEx cards offer the benefit of no foreign transaction fees, while others still charge them.

Finally, while AmEx no longer requires cardholders to inform them ahead of time if they will be travelling abroad, they still recommend “keeping your contact information updated in case we need to contact you while you’re away” and “downloading the Amex mobile app to conveniently manage your account on the go.”

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