Hi, we are interested in retiring to the Puglia area with a 7% flat tax. We are watching your video Retire Cheap in Puglia, set in Trepuzzo. Can you provide more info on the second property which is large and beautifully decorated, but no info on the building, the floor any outdoor space, etc. Thank you, Greg and Janice
I would love to see one example of any foreigner who has recently gotten a mortgage in Italy. Also, if you are going to be over 70 or 75 years old at the end of the loan, you have to have a younger family member cosign for you. It’s not a realistic option.
The first reddit post that I looked at on this topic has this response in comments: www.reddit.com/r/ItalyExpat/comments/17rmx2n/getting_a_mortgage_to_buy_a_property_in_italy_as/ Highlights of this comment include “My wife and I have a mortgage and neither are residents - we also applied as (US) foreigners” “We have a mortgage loan and bank account through Banca Popolare di Sondrio. It was relatively painless to obtain.” “The difference between a resident and non resident/foreigner is that the latter needs to put at least a 40% deposit on a property.” “My wife and I are not special cases and we don't have connections within the bank. We were just referred to them by a consultant and it was off to races. We just closed on a house in Puglia a month ago ;-)” The one point that might require further consideration is that perhaps the down payment that I am assuming is still too low. I am still gathering information on this. This redditor is saying 40% is the minimum. I have seen a wide range of testimonials on this question. For the second point, it is true that banks often require a younger family member to act as a guarantor if the primary borrower is over the typical age limit. This ensures that the loan can still be repaid if something happens to the primary borrower. This point was covered in the Martina Franca video. However, it is not a law and it would be inaccurate to represent it as such.
A few questions: I should have my dual citizenship with Italy before the end of the year. What would my tax bracket be? 2) If I do have dual citizenship does the 7% rule apply to me? 3) When you talk about the total amount of money one would need, is that gross or net?
By tax bracket do you mean which country would you pay taxes to first and/or does double taxation treaty still apply given dual citizenship? You are considered a tax resident in Italy if you spend more than 183 days in the country during a tax year or if your primary place of business or interests is in Italy. So one question would be whether you have lived in Italy for more than 183 days in the year. The tax treaty between the United States and Italy provides guidelines to avoid double taxation. It allows for credits and exemptions to ensure you are not taxed twice on the same income. You can claim a credit on your U.S. tax return for taxes paid to Italy, reducing your U.S. tax liability by the amount of tax paid in Italy on the same income. For the second question, citizenship itself does not necessarily disqualify you from this 7% income tax benefit. However, your eligibility depends on your residency status and where you have been a tax resident in recent years. If you have dual citizenship (Italian and U.S.) and you meet the residency requirements (live in a region such as Puglia in which the 7% tax applies; live in a town of less than 20k inhabitants; lived in Italy for more than 183 days in the calendar year), you could still qualify for the 7% tax regime. The main point is that you should not have been a tax resident in Italy for the five years preceding your move. In regard to gross vs. net, can I assume that you mean, for example, an individual earns a salary of $50,000 per year. This is their gross income. After deducting taxes, health insurance premiums, retirement contributions, and other deductions totaling $10,000, the individual's net income is $40,000. These are made up numbers just to ensure we are defining terms the same way. If so, the $34,000 in passive, or retirement, income required for an individual and $42,000 for a couple are gross income numbers. The monthly cost of living numbers would be after taxes have been paid and therefore net income numbers.
I think that is what the 7% income tax towns are offering, although the compensation is in reduced taxes rather than upfront compensation. I have heard of countries paying ppl to move there, but I am unaware of the details.
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So informative
Your videos are so extremely precise and expertly made. I thank you for your time and dedication.
Hi, we are interested in retiring to the Puglia area with a 7% flat tax. We are watching your video Retire Cheap in Puglia, set in Trepuzzo. Can you provide more info on the second property which is large and beautifully decorated, but no info on the building, the floor any outdoor space, etc. Thank you, Greg and Janice
I would love to see one example of any foreigner who has recently gotten a mortgage in Italy. Also, if you are going to be over 70 or 75 years old at the end of the loan, you have to have a younger family member cosign for you. It’s not a realistic option.
The first reddit post that I looked at on this topic has this response in comments: www.reddit.com/r/ItalyExpat/comments/17rmx2n/getting_a_mortgage_to_buy_a_property_in_italy_as/
Highlights of this comment include
“My wife and I have a mortgage and neither are residents - we also applied as (US) foreigners”
“We have a mortgage loan and bank account through Banca Popolare di Sondrio. It was relatively painless to obtain.”
“The difference between a resident and non resident/foreigner is that the latter needs to put at least a 40% deposit on a property.”
“My wife and I are not special cases and we don't have connections within the bank. We were just referred to them by a consultant and it was off to races. We just closed on a house in Puglia a month ago ;-)”
The one point that might require further consideration is that perhaps the down payment that I am assuming is still too low. I am still gathering information on this. This redditor is saying 40% is the minimum. I have seen a wide range of testimonials on this question.
For the second point, it is true that banks often require a younger family member to act as a guarantor if the primary borrower is over the typical age limit. This ensures that the loan can still be repaid if something happens to the primary borrower. This point was covered in the Martina Franca video. However, it is not a law and it would be inaccurate to represent it as such.
A few questions: I should have my dual citizenship with Italy before the end of the year. What would my tax bracket be? 2) If I do have dual citizenship does the 7% rule apply to me? 3) When you talk about the total amount of money one would need, is that gross or net?
By tax bracket do you mean which country would you pay taxes to first and/or does double taxation treaty still apply given dual citizenship? You are considered a tax resident in Italy if you spend more than 183 days in the country during a tax year or if your primary place of business or interests is in Italy. So one question would be whether you have lived in Italy for more than 183 days in the year.
The tax treaty between the United States and Italy provides guidelines to avoid double taxation. It allows for credits and exemptions to ensure you are not taxed twice on the same income. You can claim a credit on your U.S. tax return for taxes paid to Italy, reducing your U.S. tax liability by the amount of tax paid in Italy on the same income.
For the second question, citizenship itself does not necessarily disqualify you from this 7% income tax benefit. However, your eligibility depends on your residency status and where you have been a tax resident in recent years. If you have dual citizenship (Italian and U.S.) and you meet the residency requirements (live in a region such as Puglia in which the 7% tax applies; live in a town of less than 20k inhabitants; lived in Italy for more than 183 days in the calendar year), you could still qualify for the 7% tax regime. The main point is that you should not have been a tax resident in Italy for the five years preceding your move.
In regard to gross vs. net, can I assume that you mean, for example, an individual earns a salary of $50,000 per year. This is their gross income. After deducting taxes, health insurance premiums, retirement contributions, and other deductions totaling $10,000, the individual's net income is $40,000. These are made up numbers just to ensure we are defining terms the same way. If so, the $34,000 in passive, or retirement, income required for an individual and $42,000 for a couple are gross income numbers. The monthly cost of living numbers would be after taxes have been paid and therefore net income numbers.
Do you have information on those programs where they are compensating you to move to a town where the goal is to increase population?
I think that is what the 7% income tax towns are offering, although the compensation is in reduced taxes rather than upfront compensation. I have heard of countries paying ppl to move there, but I am unaware of the details.
Does Trapuzzi have taxis or uber ?
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