Relocating to Italy as an elective resident can be a rewarding experience, but it requires careful management of bureaucratic and tax aspects to ensure compliance with Italian laws.

This guide provides a structured checklist based on the main areas:

Residence permit requirements.

Tax declaration.

Monitoring of foreign assets.

Integration opportunities.

This guide is designed to assist foreigners, especially non-European Union citizens, in understanding and navigating the process of obtaining a residence permit for elective residency in Italy.

Whether you are retirees, individuals with independent financial means, or simply captivated by the Italian lifestyle, this guide will provide all the necessary information to live legally in Italy without the obligation to work.

This guide will explain specific requirements, necessary documentation, timelines, procedures, opportunities, as well as the challenges and common issues you may encounter along the way.

The guide is intended for:

• Non-EU foreigners interested in settling in Italy for personal or quality-of-life reasons;

• Retirees and individuals with independent incomes who wish to reside in Italy for extended periods;

• People who, although not intending to work, want to have a legal residence in the country.

November 2024 Edition

105 pages - 10 $ Only

Practical Cases and Frequently Asked Questions

Income from Investments and Foreign Capital

An American couple with an elective residence permit receives dividends from U.S. stocks and interest from bonds. They primarily need clarification on declaring and taxing this income in Italy.

• Problem: The couple wonders if double taxation on dividends and interest can be avoided and how to report this income in their Italian tax declaration.

• Solution: The tax treaty between Italy and the United States allows for a reduction or avoidance of double taxation. Dividends and interest earned in the U.S. must be declared in Italy at a standard rate of 26%, but the couple can obtain a tax credit for taxes already paid in the U.S., reducing the overall tax owed in Italy.

Practical Tips:

Use the RW form to declare income from foreign investments and request a tax credit, specifying taxes already paid in the U.S.

Annually monitor foreign investments to declare any capital gains and take advantage of tax benefits provided by treaties.

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Owner of Foreign Property

A British citizen residing in Italy with an elective residence permit owns a rental property in London. Rental income is already taxed in the UK, and the resident wonders if they must declare this income in Italy as well and how to avoid double taxation.

• Problem: The citizen worries about having to pay taxes twice on the same rental income.

• Solution: The tax treaty between Italy and the UK allows income from foreign properties to be taxed in both countries, but Italy permits a tax credit for taxes already paid in the UK. In addition to rental income tax, the resident is subject to IVIE (Tax on the Value of Real Estate Located Abroad), amounting to 0.76% of the property’s value.

Practical Tips:

Consult a tax expert to calculate IVIE based on the property’s cadastral value in the UK and ensure deductions are correctly applied.

Check if the UK allows deduction of property management expenses and report the same information in the Italian tax declaration.

Updated November 2024 Edition

105 pages - 10 $ Only

Practical Cases and Frequently Asked Questions