Retiring in Italy in 2025: Top 7 Benefits
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If you are considering retirement in Italy, the taxes also come into play. But, when will you be counted as a tax resident in Italy? Here are the general rules:
- If you stay more than 183 days per year in the country
- If you are officially registered as an Italian resident
- Have a habitual residence in Italy or have established Italy as the center of your economic or social life, such as through family or business.
If the criteria above apply to you, you qualify as a tax resident and Italy will impose tax on your worldwide income, including your retirement income, social security benefits, or retirement funds from the US.
Income tax rates are stated below:
- Up to EUR 28,000: 23%
- From EUR 28,001 up to EUR 50,000: 35%
- Above EUR 50,000: 43%
In addition to income tax, you can also pay regional taxes ranging from 1.23% to 3.33%, and regional taxes up to 0.9%. This may change depending on where you reside. However, there is also a special tax incentive for investors for Golden Visa holders. According to this, you have to pay an annual tax of €200,000 on your income. Apart from that, if you live in low-density areas, you can benefit from a reduced 7% flat tax rate.
