# living in Sicily - specific issues?



## suiko

Considering Sicily as an option. 

I would hope to find some work at first as an EFL teacher, and then buy a house after a couple of years or so and retire there. Leaning towards the SE corner.

I was wondering if anyone on here might have specific experiences of living in Sicily. Naturally I've visited a number of times, but living is of course a very different business.

Many thanks


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## NickZ

While we wait for one of the few Sicilian locals to reply.

Work will be harder to find.

That's the main problem. Depending on what you mean by retire you may have other issues to consider.


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## suiko

Thanks, Nick.

I don't need to work full time. Obviously I'm aware that the economy in N Italy is a lot more buoyant. I have some income from rentals in the UK and will have a pension within a few years.

My plan is to find some work teaching English and to continue doing some freelance work online.

What would the "other issues" be?


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## NickZ

Like I said it depends on what you mean by retirement.

Some people want to travel around Europe. That's easier if you're near one of the bigger Italian airports (Rome or Milan). Obviously it's easier to take a train around the country if you're already on the mainland.

Other people may have interests that might be easier someplace else. You'll see many people that start out in a more or less rural location before figuring out it's not the best choice for them. 



None of these issues apply to everybody. Some people just want to sit in their garden. Or spend time in their local town.


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## GeordieBorn

If you are living in Italy more than half the tax year (Jan-Dec Italy), then tax is a problem as its high and there is no allowance as in the UK. Income from rentals abroad i.e. UK would be subject, as well as your pension unless it is government derived e.g. civil service, army pension etc.


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## suiko

GeordieBorn said:


> If you are living in Italy more than half the tax year (Jan-Dec Italy), then tax is a problem as its high and there is no allowance as in the UK. Income from rentals abroad i.e. UK would be subject, as well as your pension unless it is government derived e.g. civil service, army pension etc.


Thanks! As I don't want to be in the UK at all, then I would need to be resident somewhere else, and maintain two houses? Really can't afford to be paying 40% tax on what is going to be about €15,000 pa anyway!


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## NickZ

There are various basic allowances. I say various because the exact amount depends on which group you fall into. worker,retired, and older retired all have different allowances.

The problem might that allowance gets clawed back the more your income goes up.


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## suiko

So assuming my income is 30% work within Italian tax system and 70% rental income from UK, how would that work?


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## NickZ

You need to pull up the tax treaty. I don't know that section of the UK/Italy treaty but IIRC standard treatment would be the UK would take your rental income.


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## suiko

NickZ said:


> You need to pull up the tax treaty. I don't know that section of the UK/Italy treaty but IIRC standard treatment would be the UK would take your rental income.


Thanks. I can't imagine that would be the case, though, if I'm not resident in the UK?


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## NickZ

No property is almost always taxed in the location of the property. 

https://assets.publishing.service.g...ent_data/file/498371/italy-dtc_-_in_force.pdf

Article six


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## suiko

Thanks. That looks OK, then.

How come pension would be taxed?


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## NickZ

That's the agreement. That's the simple answer.

The longer one is you can't just move a building. It's the building that is really earning the income.


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## GeordieBorn

The DTC between the two is here. My understanding is that any allowance in Italy is in the form of a credit and not like the UK whereby upto a certain amount you don't pay tax. I've never been able to confirm allowances in Italy. Apart from which I understand any difference in tax paid in one ****ry, if less, can be due in the other. I've always thought this would be by way of calculating the amount due in one and in the other. Italy being a lot higher you will be liable!


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## NickZ

https://www.altalex.com/guide/irpef-scaglioni-aliquote

I can't find the official source at the moment but it's there



> 8.145 euro per i lavoratori dipendenti;
> 8.125 euro per i pensionati under e over 75 anni;
> 4.800 euro per i lavoratori autonomi.


I can't find it at the moment but I think those numbers shrink with income.


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## suiko

Does anyone have any experience of having a (private work) pension taxed in Italy? I'm trying to get a rough idea of how much of it I might expect to lose in tax.


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## GeordieBorn

NickZ said:


> https://www.altalex.com/guide/irpef-scaglioni-aliquote
> 
> I can't find the official source at the moment but it's there
> 
> 
> 
> I can't find it at the moment but I think those numbers shrink with income.


Yep I've seen those or similar figues before, but never any information on how it works...


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## GeordieBorn

suiko said:


> Does anyone have any experience of having a (private work) pension taxed in Italy? I'm trying to get a rough idea of how much of it I might expect to lose in tax.


Last I looked the rate of tax started at 23%. But they were talking about some positive changes, no idea how far they got.

I just did a search on "income tax rate italy" and a few interesting results come up, including this Wiki link which has the rates Nick mentions. You might want to look at a few others. Like I've said I've not looked at this subject for a while, but seeing those rate rings bells like if you are over these amounts you pay on the lot. My worry was always the knock on the door and having to deal with these people in Italian! A friend had that very thing happen at around 5 in the morning with a number of them banging on her door... 
:juggle:


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