Making a move to Italy and exhibiting the true embodiment of “La Dolce Vita” is a dream for many, especially digital nomads. Not just the rich history, world-famous food and wine, and beautiful landscapes, Italy also offers attractive tax incentives for people looking to relocate.
In this blog post, Nico, an experienced Italian tax advisor and immigration attorney, divulges key insights on Italy’s tax incentives, the cost of living, and important things to consider when planning to live in Italy as a digital nomad.
Italy offers enticing tax breaks for those considering relocating there. Some schemes involve waiving 70% to 90% of income tax depending on where you live – North or South. This means that if you earn €100k in Milan, you may pay only around €5000 to €6000 in taxes annually.
For high-net-worth individuals, Italy offers an option to pay a one-time tax of €100,000 on all foreign income and live in the country for 15 years. There is also a 7% pensioner scheme for those in retirement who plan to live in Italy, irrespective of their income type. These various tax options are designed to cater to different income levels and lifestyles, aiming to make Italy an attractive destination for residents around the globe.
Claiming your tax break and moving to Italy is the first step; ensuring you have the right documentation and residency status is an important next stage. Holders of EU passports can easily register as residents. However, non-EU citizens need to acquire a long-term D-type visa to acquire a residence permit. You can maintain this residency permit by showing a minimum income of €12,000 annually.
The cost of living in Italy varies based on your location. Major cities like Rome and Milan are more expensive, likely costing between €1200 to €2500 per month for a comfortable lifestyle. However, areas in the South and smaller towns offer a more economical cost of living. It’s crucial to remember that as an Italian tax resident, you are also entitled to free healthcare services.
Moving to Italy doesn’t mean that you should transfer your business there. If you are a digital nomad with an online business, consider choosing one country to incorporate your business and another for your banking relations. Keep your business structure flexible enough to wrap up quickly should you decide to leave Italy.
When planning to make Italy your home, it’s crucial to make informed decisions about your taxes, residency, and business structure. Aside from these practical considerations, remember to get the most out of your life as a digital nomad in Italy – explore the country, enjoy the delicious food and wine, and don’t forget to immerse yourself in the rich cultural experience that Italy has to offer!
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