Shades of Blue

Dear Expats
could you share your thoughts on the financial and tax aspects of retiring in Italy. Before i jump.
My pension will not be massive and I am starting to fear that overall cost of living is actually higher than in the UK once the higher taxes are counted.
what's your experience?

modicasa

Obviously it depends where you go and what lifestyle you are accustomed to. And it depends on how big your pension is. Give us a hypothetical and people will jump in to help.

Shades of Blue

The idea is £ 2000 net a month spending
living in a coastal small tourist town on the Adriatic
owned flat no mortgage
with a uk pension pot of 300k and another 200k savings. They need to last 30+ years
uk income tax worked out 1500 a year
Italian income tax alone comes to 4500 a year
Big difference.

scrubbedexpat077

For starters, you're asking an easy question, aren't you?
Sorry being blunt, but do a bit of homework, Most prospective expats think Italy is 3rd world cheap country where their meagre pension will grant luxurious lifestyle, but it's not so. Parts of Italy can be quite expensive. If you're used to cheap and nasty UK supermarket food, you'll find that food is overall more expensive in Italy; at least it was for me a few years ago, although now you have more rock-bottom so called "hard discount" stores targeted at low income immigrant population than when I lived there. Then bear in mind that there is a tax for just about everything and if you want to be on the safe side of the law, you'd better pay it.

Not cheap

Ok.

Is this before or after buying the flat?

Geordieborn

The tax difference alone would put us off, but we did find the quality of life there much better than here in the UK. For us it was also cheaper living there, but that depends on your lifestyle, we spent most time in the garden. Coming back to the UK after spending almost 10 years in Italy oddly enough was a revelation in as much as we discovered there was a great deal we liked here. However we do miss Italy and will look at the possibility of a long term rental without being there permanently (if such can be had). The cost of doing so has to be balanced against the cost to visit and/or taxation. I’m sure with you being Italian there will be many more considerations than we would have, best of luck whatever you decide.

Shades of Blue

Thank you
After

Shades of Blue

Thank you.
there is much i like of the uk too even before considering my uk born children.
Italy is to enjoy the last years of my parents and the sun 🌞.
maybe keeping my uk flat and dipping in and out would work better. Shame about the italian sea front flat though. That wouldn't fit in

Listen Very Carefully

Firstly have you found out whether or not you will get a visa-you now need one to move to any country in the Eu
https://visa.vfsglobal.com/gbr/en/ita/apply-visa
Will you meet the income requirement Will you be able to afford the private health insurance in order to get the visa and until you can join the state health system? Have you researched if you can join and whether or not you will be making payments? What about the Anglo Italian tax agreement? Have you checked that you can keep your UK bank account open and if not will your pension provider pay into an EU bank account which if so will cost you There are so many "hidden" costs of moving to another country but the biggest one of all is the exchange rate If the pound goes belly up your just about managing pension becomes a problem
These are all things you need to consider

Listen Very Carefully

I see from another thread that you are a returning Italian so no need for the visa etc but obviously the health questions and exchange rate matters will still apply

Shades of Blue

Thank you LVC
will check about the bank account, would hope will find one if I lose the Barclays one, or is that not easy?
for the currency issue, I would move some of the portfolio out of UK and US stocks/bonds into more European stocks/bonds. or even into euro denominated funds. in general diversification of the portfolio protects you a bit from currency fluctuation anyway. I guess need to live with it as I won't cut all ties with my "father" country
which uk banks give you an account if you live abroad?

Margaret M

HSBC do.

scrubbedexpat077

Then you have a solid ground to build on.

Serrano

Having been through this loop only a few months ago, I can confirm that HSBC do, and are really the only bank that I could find (apart from Barclays, who gave a very vague "maybe, but we're too busy, Covid and all that, to make a decision at the moment") that did so. And so far I'm very happy with them.

Margaret M

We have always been with HSBC, but a friend transferred to them after Barclays closed his account, so you probably would get a "NO" from Barclays these days.

Listen Very Carefully

The other option is something like a borderless account with Wise