Italian Income Tax
 

I am hoping this will be my last substantial question for the group, as it's the last big issue I need to deal with. I receive two pensions, a small British pension paid into Barclays in the UK; and a much larger US pension which will be paid into my bank account here in Siracusa from 3 June onwards. That's all I have, no other complications, no other income, no property.

I need to find someone simply (a) to calculate how much tax I need to pay here in Italy, and (b) to advise me on how and how often to pay it. From my friends, I understand that's a "commercialista." But I don't want to pay a fee of hundreds of euros for a calculation and a few words of information that will take less than 15 minutes.

Do you have any suggestions? Or can anyone recommend a commercialista who will do the task cheaply: he/she doesn't have to be in Siracusa, since I can provide all the necessary information by E-mail.

Thanks for all and any advice!

Re: Italian Income Tax
 

All the main trade unions, CGIL, UIL, CISL; have offices in Siracusa, and will have a 'CAF' that sorts out these matters almost free of charge for pensioners. Might have to pay a small joining fee.
All the best,
'o nonno

Re: Italian Income Tax
 

Do you have any property, premium bonds, savings, bank account, in any other country or have you liquidated all your assets? If you pay tax at source on your pensions, then you will need someone who understands double tax treaties and its unlikely that the people at the CAF in siracusa will be able to help completely.
There is now a DIY tax form, but that runs to many many pages.
Anyway for this year you dont need to do anything. Your tax year ends 31 December, so your first tax return will be June 2018.

Re: Italian Income Tax
 

I went to the CGIL with mine and they thought about it for 8 weeks and then said they couldn't do it because they didnt have the knowledge.
It is too complicated to do yourself and you need to find someone competent. Any mistakes result in fines. You need a record of the value of all your assets held abroad on Jan 1 2017 and again on Jan 1 2018 along with any earnings during the year. Best to start now!

Re: Italian Income Tax
 

If you bought an annuity in 2017 you might be taxed on that. Italians nearly all get their pensions through INPS and private pensions are almost non existent. I am not sure what the rules are but it might be worth having a chat with an accountant straight away to see what your liabilities are for 2017.
I should think an accountant might do your tax return for less than Euro 200. Paying the tax man is the painful bit.

Re: Italian Income Tax
 

I don't have any annuities or private pensions. I don't own any property. I have no complications. My only income consists of US Social Security (80% of the total) and about half a normal British pension, because I paid in for 14 years (20% of the total). It's a perfectly adequate amount on which to live happily in Sicily. I'm going to try the CISL route: it seems fairly straightforward.

Re: Italian Income Tax
 

In most cases pensions should be paid gross and taxed where the recipient lives, and this is true even if the pension is credited to a bank account in the country where the pension is sourced. The only notable exception is for pensions paid for government service, such as a military or civil service pension. British state pensions are certainly payable gross to retirees outside the UK.

Re: Italian Income Tax
 

My pensions are paid gross and under dual taxation treaties are taxable where I live -- which since last week is officially Italy. I just need someone to tell me how much I need to pay, taking into account all permissible allowances and deductions, and when/how to pay it.

Re: Italian Income Tax
 

Ah, the perennial question. It might be an idea to sound out some other expats in your area to get a personal recommendation. Some accountants take on expats but don't really know what they are doing and it's the tax payer that ends up paying the price.

So you'll have to provide details of all the income payments you receive, and if not received in euros, the amounts will have to be exchanged. For some reason that process is exceedingly fiddly. Exchange rates for the past year are set by the central bank of Italy on a day by day basis so the exact amount received into your UK account can be calculated when the amount actually goes into your account. Actually, I do all the ground work for my accountant, but that's because I have a complicated tax return and quite a good relationship with my accountant, and he bills me less (€200 rather than €500). In the end, he "just" checks my figures and inputs them into the system!

I think you mentioned before that you have about €2,500 a month budget (sorry if I'm out, if so, let's just take that as an example). That would be around €30,000 a year, which would be in the 38% tax bracket. The balance of your UK bank account will have to be declared on the RW form and tax paid (€30-odd a year) on the fact you hold that account, which is no great shakes really and Italian accounts attract the same amount of tax. If you are lucky enough to receive interest on that account, then it will also have to be declared and tax paid on that too.

Start keeping all your receipts for medicine or just about anything else you buy at the chemist if your health number is printed on the receipt. Also if you buy any white goods with AAA energy rating because you can get money back on them too. Also, I guess there will be rebates for your home if you are renting but I don't know much about rental rebates.

I'm sure someone will correct me if I have got anything wrong .... Btw the payment deadlines are strict, maybe the end of May is the main deadline?

Re: Italian Income Tax
 

Your deductions are and will be - medicines and medical procedures, eyewear, white goods (this year) furniture (this year), accountant and compilation of your 730, veterinary bills, health insurance or most insurance/assurance payments such as INAIL, donations to charities, carers and home assistance.
If you want to see what it involves, go the agenzia dell'entrate site and download a form 730 semplificato. Then you can deicde if you are happy to pay someone.