Wantingaway

One couple early sixties running one car, internet, 2 mobile phones all taxes with no mortgage or rental payments. In those circumstances what would we expect to be an average cost of living per month?
I would be grateful for all answers for any commune anywhere in Italy.
Thank you.
Angus.

Geordieborn

Ha! At least you give some information…Car – small punto, one weekly trip to shops and perhaps 5-6 more per month elsewhere, never far = €150 Mobiles 7-8 each

Internet, depend on usage 10-20Taxes – guess you mean house, assuming resident nothing but rubbish tax which depends on the size of the house, ours 230sqm x2 people roughly 20. Income tax is 23% on anything (no allowance) up to about 15000, 27% up to 28000… and up and up, let me know if you want full details. There was talk of this changing, but…Supermarket, heating, electric and water really depends on what you buy and how you live, but with this and the above items we would budget for circa 1500. However our circumstances may be very different e.g. we can spend 2-3 months in the UK, we don’t do much in the way of entertainment e.g. no tv, restaurants probably less than a dozen times per year. But it does include things like an amount per month for maintenance , travel, medical etc…

Wantingaway

Thank you Geordie born.
Your info has been really helpful. Do you mind if i contact you in future for other info?
Wantingaway.

Geordieborn

Glad it was of some help, of course, ask away...

Wantingaway

Hi again.
Trying to work out our tax on income at moment.
We want to retire to italy on the following basis.

a married couple
All savings kept in uk and transferring 1500 pounds to italy per month.
What is our tax liability on that?
Do we pay tax on the 18000 per year or do we pay tax on the difference between tax paid in uk and italian tax demand?
do we declare to italian tax our total uk savings and pensions or just what we transfer to italian bank?
does italy consider our uk savings and pension our income or just the money we would have in an italian bank?
All and any info welcome.
Angus.

Serrano

You pay tax in Italy principally on income, not capital, so all UK interest would be considered as income to be taxed in Italy - and then against that they would offset the tax you've already paid in England. Note that all income (earned and unearned) in the UK would be treated in accordance with Italian law. Thus for example earnings that are tax-free in the UK (ISA interest, Premium Bond winnings etc) would be liable to tax in Italy
You have to DECLARE in Italy all your world-wide assets. That doesn't mean that they will be taxed, but you do not have to declare them. There are stringent penalties for not doing so. While the money in a UK bank is not taxed as such, be aware that you will be charged a small amount (something like €35-€50 per year) for each account with more than a minimal amount of money in it.
Answered above

Wantingaway

Got it t, i think.
So, as examples, if i have a monthly pension income of 750 going to an italian bank, plus a further transfer of 750 per month from uk savings account, all money from one uk bank account. What am i being taxed on by italy?
Angus

Wantingaway

Serrano, i have no idea what your post was. Please send again.

Geordieborn

Note, all tax in Italy will be done as individuals, no “married couple” aspect for tax.
Okay, in the UK x2 people on £9000 per year is no tax, quite simple as the UK tax allowance would wipe it out.
Italy (equal in pounds), 9000x23% = £2070. So total tax there for the couple for the year would be £4140.
This is assuming a pension income of £9000 each without and other income from savings interest, UK rental income, dividends etc.
Yes, in a case where you did have UK tax paid, you would be liable for any higher difference in Italy based on their calculation under Italian law.

Serrano

It doesn't really matter which accounts are used. As I said, you are taxed on income, not capital. Movements from one account to another are capital movements (as are for example currency conversions), in no sense are they income. So in your example, the "monthly pension income" is, guess what, income, therefore you will be taxed on it. Doesn't matter what account it's paid into in what country, it's income.

So to make it (hopefully) crystal clear, the 750 pension is income and will be taxed. The other 750 is a capital transfer and won't be taxed.

In that case we're quits. I have no idea what the above means

Wantingaway

As you said. Crystal clear, thank you very much. Fairly sure ill be back in touch if you don't mind.
Angus

Serrano

No, I don't mind at all. While I'm on, there's one thing, I've just noticed in an earlier post (#6).

When I wrote:
"You have to DECLARE in Italy all your world-wide assets. That doesn't mean that they will be taxed, but you do not have to declare them. There are stringent penalties for not doing so."
it should have been:
"You have to DECLARE in Italy all your world-wide assets. That doesn't mean that they will be taxed, but you do have to declare them. There are stringent penalties for not doing so."
I think the grammar of the paragraph should have made that clear. I'll try to go back and correct the original, in case anyone sees it in future ...
EDIT - looks like I can't change the old post. Oh well, ...

Wantingaway

If you don't mind may i ask about land taxes.
Is the tax value of land based on cadastral value of the property on it or purely on the land itself?
So, if i had land of say 2000sqm, which i would not work but only keep in order with no animals or crops the tax would be payable annualy on the type of land or the use of the land?
angus.

Geordieborn

Type of land shown in the deeds...

Wantingaway

Thank you.
Would it be paid annually?
Angus.