Moving to a foreign country can be daunting, especially when it comes to navigating through legal and tax systems. Italy, a dream destination for many digital nomads and travelers, is no exception. In this podcast episode, Nico guides you through what is needed to obtain the Italy nomad visa for any digital nomad, and how you can save money via Italy’s various tax incentive schemes.

Table of Contents

Understanding the Italian Tax System

Nico, an Italian tax advisor and immigration attorney, provides insights into navigating Italian’s tax law landscape. He understands from personal experience the complexities of living in more than one country, particularly regarding personal tax affairs, as he was born and raised in Italy but also spent some time in the U.S.

Having returned to Italy and begun working in taxes and accounting, Nico discovered that many expatriates live in Italy. He delved deeper into the topic and got certified from Italy and the United Kingdom. He also developed immigration services to help people move to Italy as the country has introduced some interesting tax breaks.

Attractive Tax Break Schemes & Italy’s Nomad Visa

Italy might not be your first thought when considering tax optimization locations, mainly because it is known for its high tax burden on taxpayers alongside a high social security. However, it’s noteworthy that a high tax burden also parallels good-level welfare services which may be more appealing to some people.

If you’re considering Italy for tax reasons, it’s important to know that Italy has introduced new tax breaks. These breaks make it possible for persons earning above 50K to only be taxed at a 43 percent marginal rate. There are three main types of tax breaks if you relocate to Italy:

70 percent or 90 percent Tax Break – This scheme allows you to waive 70 percent of your income tax if you live in the north of Italy or 90 percent if you live in the south.
High Net Worth Individuals Tax Break – For high net-worth individuals, you can pay a one-off tax of 100,000 Euros on all your foreign income and live in Italy for 15 years. You can also add family members for an extra 25,000 Euros.
Pensioner Scheme – This scheme is particularly for people retired, where all your foreign income is taxed at a flat 7 percent rate with no cap.

With these tax incentive programs in place, Italy definitely is a competitive option for digital nomads looking to optimize their taxes.

Making the Move to Italy and Things to Consider

Moving to Italy requires some prerequisites, one of which is getting an Italian tax code. Once in Italy, you will need to renew your residence permit every year. The immigration process can take three to six months depending on your circumstances. One important point to consider when planning your move, whether for an Italy nomad visa or otherwise, is the date for tax purposes.

Cost is major thing to bear in mind when thinking of relocating to Italy. The cost of living could range from as low as 1,200 Euros to as high as 2500 Euros a month depending on your lifestyle. This adds to a comfortable lifestyle in a beautiful European country.

However, it’s always smarter to get some consultation before making a decision.

Final Thoughts

Making a move to Italy or to any foreign country is a big decision with many consequences. Therefore, it is advisable that before making that leap, you reach out to tax and immigration experts to guide you through the journey, making sure your decision does not put you in a position where you might face unwanted consequences later on.

Whether Italy is your final destination for tax purposes or you’re just looking for a beautiful country with good food and wonderful destinations to continue your nomadic lifestyle, planning ahead and getting your documents together should be a priority. With the right information and team of experts on your side, the Italy nomad visa or a new life in Italy can be yours!

You can find more about the tax services rendered and information on making the move to Italy by emailing us at hello@workwealthandtravel.com, and we would be happy to put you in touch with Nico directly.

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00:47 Understanding Tax Issues for Expats
01:31 Exploring Italy’s Tax Breaks
02:12 Tax Optimization for Digital Nomads in Italy
03:15 Understanding Italy’s Tax Brackets
04:10 Tax Schemes for High Net Worth Individuals
05:21 Tax Benefits for Pensioners in Italy
06:28 Italy’s Attractiveness for Digital Nomads
07:10 Understanding Residency Requirements in Italy
14:51 The Process of Moving to Italy
21:26 Understanding Italy’s Tax Code
34:01 Cost of Living in Italy
39:11 Final Thoughts and Advice

Learn More

If you want to learn more about becoming a digital nomad, creating a business you are passionate about, global taxes, and entrepreneurship, check out the links below:

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