bvlenci

The US allows you to have citizenship in other countries without renouncing your US citizenship. I'm a citizen of the US and Ireland by birth, and of Italy by adoption.

bvlenci

Italy and the US both want to tax all your income, but both allow you to deduct the amount of taxes you paid to the other country. In effect, this usually means you pay the Italian tax rate, which is higher than the US rate. The exception is Social Security income, which by tax treaty is only taxed in Italy if you reside in Italy.

scrb11

What about retirement income like pensions, dividends, interest and capital gains?

swandav2000

Thanks for that clarification, bvlenci!!

s

Alec

<I>What about retirement income like pensions, dividends, interest and capital gains?</I>

They are taxable in both countries, but because of tax treaty you can deduct the amount of tax you've already paid or deducted at source from the other country's liability. What this means in effect is you pay overall the higher of the two tax rates applicable in US or Italy. So for example if US levies 10% for a taxable income whereas Italy does 20%. So you can deduct 10% from Italy's liability, and you end up paying 10% to each country.

scrb11

How long do you have to stay to be liable for taxes in this country?

If you get any kind of visa that lets you stay over the 90 days in Schengen countries?

Alec

Usually more than half the time in any tax year, which varies from country to country. UK is 6 April to 5 April.

TDudette

Gracious, WoinParis, your feelings for Pisa aren't very deep....

DH and I loved it. As mentioned upthread, away from the field of miracles, it is a nice city. We only stayed there 2 times and never caught colds.

annw, we loved Perugia also--so hilly though. It was a problem for my asthma.