For Danish expats: the 7% tax scheme in southern Italy

Hi and welcome Søren

Yes, you are correct, there is a 7% tax. I am no expert, its from what I have found in research on the matter, so you will need to contact the Embassy as well. But from my understanding, it applies only to certain areas.

1. You must move to a municipality with fewer than 30,000 residents in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, or Puglia
2. You must not have been a tax resident in Italy for the last five years
3. You must receive a pension from a foreign country (Denmark, in your case)

Register for an Italian tax code (Codice Fiscale) and move your official residence (residenza anagrafica) to that municipality

Apply for the special 7% tax rate in your first Italian tax return. It's recommended to hire an Italian tax consultant (commercialista) to manage this, as they can guide you through the process.

Have a read of this > https://taxing.it/7-per-cent-flat-tax-f … outh-italy

I hope this is of help.

SimCityAT

Expat Team

@sja121063

Hi, Be aware of all the criteria by which you would be affected / subjected especially as far as your finances, savings, stock market portfolio, number of bank accounts you maintain and ensure no average balance exceeds Euro 5000.

I made the mistake of moving to Calabria in 2016

I would like to think the knowledgeable people (locals and professionals) would advise against deciding to relocate to Italy - especially for a retiree. For me it was the worst decision I ever made back in 2016. I have Pensions and Life Assurance Policies, Stock Markets Shares and other specialist financial products and a couple of foreign bank accounts.   In financially civilized Europe for which neither Italy nor its supposed official Tax  Office qualify, to have a couple of bank accounts is called organization - for the Agenzia Delle Entrate it is one way of screwing people for EUR 34.20 per account per year, screwing people for 26% of their interest income on any of those additional accounts, screwing people for 26% of their Dividends on their hard studied stocks and shares, screwing people for a small extra percentage of their remaining income for the embarrassing quality of local road surfaces (craters), screwing people for the same local charges for non existent services such as reliable local travel infrastructure. My advice is to do what the locals do and keep your cash under the mattress. No wonder the country is bankrupt - it is the Italian rules that are breaking the country.

- Comments on Sarah article

- The cause of dying towns and villages in Italy is caused by its own Government.

- The money is allocated in the north where Milan is the financial capital.

- Due to corruption and other back-handers the money runs out after it has reached Rome.

- This explains to the tourist why the hard shoulder and 3 lanes on the autostrada reduces to 2 lanes and perhaps a hard shoulder.

- There is no realistic welfare state in Italy so unless you have family you die.

- Taxation in Italy is an archaic dinosaur dreamed up by people who obviously have no financial acumen, experience or vision. They excel however in driving the country's currency under the blanket.

- Taxation in Italy is causing the country to go further  into economic decline / bankruptcy

- The Tax "authority" in Italy is named Agenzia Delle Entrate

- The hours of business and contact terms of this agency compared to other countries is less than poor.

- If you are lucky enough to be answered within a few hours your call will possibly grant you an qappointment for a later date.

- Employment in Italy is seemingly at capacity. That is how it appears but when you scratch below the surface all types of conditione d upon the workgiver....Italian Red Tape.

- People working in black probabaly account for 50% of the able population