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MOVING TO ITALY

Moving to Italy: Five things to do on arrival in Italy and hiring an accountant

Moving to Italy, a country infamous for its red tape, can seem like a daunting task. Our new newsletter is here to answer your questions - this time we're looking at what you need to do when you make it to Italy and whether it's worth using a professional accountant.

Moving to Italy: Five things to do on arrival in Italy and hiring an accountant
You'll have to sort out some bureaucratic tasks before relaxing and soaking up the sun as an Italian resident. Photo by Alberto PIZZOLI / AFP.

Here at The Local we’re an international team living in Italy – which means we’ve either grown up navigating Italian bureaucracy or been through the simultaneously exciting and nerve-wracking process of moving countries.

Our new newsletter is aimed at people who are in the process of moving, have recently moved and are still grappling with the paperwork or perhaps are just thinking about it – and we’ll share a regular selection of practical tips. Our team is also available to answer questions from subscribers to The Local.

Five things to do when you move to Italy

If you’re a non-EU citizen who’s been through the process of applying for permission to move to Italy, getting your visa can feel like the final chapter in a long and arduous journey.

But there are several steps both EU and third country nationals need to take on arrival in Italy to make sure you’re fully registered with the authorities – some of which need to be completed within a relatively tight timeframe.

New residents need to apply for an Italian codice fiscale (tax code) and register as a resident with their town hall’s anagrafe within 90 days of moving to Italy.

Those coming from outside the EU must also apply for a permesso di soggiorno, or residency permit, within just eight days of arriving in the country. 

We compiled a guide to these and other essential tasks you’ll need to complete once you’ve relocated to Italy.

New residents of Italy will need to sign up for an Italian tax code. Photo by ANDREAS SOLARO / AFP.

Hiring an accountant for your Italian taxes

As Italy’s tax deadlines approach, new Italian residents will need to familiarise themselves with the country’s notoriously complex tax rules, which Prime Minister Giorgia Meloni recently described as “illogical and vexatious… and quite useless too.”

If you’ve always filed your own tax returns at home, you might think you’re just as capable of doing so in Italy – but it’s something the The Local’s readers tend to advise against.

“There’s not a chance I would file my own taxes in Italy,” said self-employed British reader Greg in Lombardy. “The rules keep changing, it becomes very time-consuming.”

As well as knowing how to navigate Italy’s labyrinthine tax system, an Italian commercialista can assist in applying for government bonuses and refunds, ultimately saving you money. Here’s what our readers had to say about their experience of using an accountant in Italy.

Meanwhile some of our American readers who are required to file taxes in both Italy and the US told us they recommended using the services of a professional accountant in both countries

Separately, we recently explored Italy’s special tax rate for foreign retirees and whether the country’s flat tax rate for freelancers could be right for you.

Questions

The Local’s Reader Questions section covers questions our members have asked us and is a treasure trove of useful info on all kinds of practical matters. If you can’t find the answer you’re looking for, head here to leave us your questions.

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For members

RETIREMENT IN ITALY

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

Italy's flat tax rate of just seven percent for people who choose to retire in the sunny south of the country has garnered a lot of interest worldwide - but how many people are really able to take advantage of it?

How many people successfully apply for Italy's flat tax for pensioners?

Since 2019, Italy has offered a special seven percent tax rate to those who retire in certain peaceful, sunny, and usually very affordable parts of the country with a foreign pension.

Understandably, this offer has generated a lot of interest from people around the world who are considering a move to Italy for their retirement.

Q&A: What to know about Italy’s flat tax rate for pensioners

While it may sound like the low tax rate would be immensely popular, the scheme has quite a few requirements which mean many would-be applicants find it’s not the right fit for them.

Firstly, you must settle in a qualifying town or municipality with fewer than 20,000 inhabitants. Almost all of these are in the southern regions of Abruzzo, Basilicata. Calabria, Campania, Molise, Puglia, Sardinia, or Sicily.

You must receive a foreign-sourced pension, and you can’t have been a legal resident of Italy at any time in the previous five years.

If you meet all the requirements, you’ll need to be able to prove it when filing your first Italian tax return in order to benefit from the low tax rate.

The scheme is now in its fifth year, but the latest data reveals that fewer than 500 people in Italy are taking advantage of the seven-percent tax rate.

READ ALSO: Retirement in Italy: What you need to know about visas and residency

A total of 474 people declared a foreign pension income under the scheme according to figures from the Department of Finance, published at the end of April, on tax returns filed in 2023.

They declared a total pension income amount of 19 million euros, which works out at 40,210 euros per person on average, according to financial newspaper Il Sole 24 Ore, and a total income from all foreign sources of 28.7 million euros.

This resulted in just under two million euros in tax paid to the Italian state, according to the data.

The flat tax represents a substantial saving, as Italy’s usual Irpef (income tax) rates are between 23 and 43 percent depending on income bracket.

If you’re interested in using the scheme yourself, you can read more about the requirements in a separate article here.

Please note that The Local is unable to advise on individual cases. Find more information about Italy’s flat tax rate for retirees on the Italian revenue agency (Agenzie delle Entrate) website here (in Italian only) or speak to a qualified tax advisor.

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