# Income Taxes



## TerriBradley (Aug 9, 2011)

I've read on line that if you stay/live in Italy for more than 183 days, you're considered an Italian resident, and as such are obligated to pay income tax. At the highest bracket income, including capital gains, is taxed at 43%! As a retiree, that is a big bite.

But I've also read that Italy doesn't have a means to confirm the amount of income from other countries... Is this common practice?

Understanding that none of you are tax attorneys, what has been your experience and what is your opinion?


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## Bevdeforges (Nov 16, 2007)

If you're from the US and you retire in Italy, you are also going to have to continue filing your US tax returns from Italy. There is a tax treaty between the US and Italy to keep you from being taxed twice on the same income - and to define exactly who taxes which kind of income and how between the US and the country you are living in.

I am told that the US can and occasionally does compare tax returns filed by Americans living overseas with those filed in their country of residence (and they share the information with the host country) - however this seems to be more common after the death of an American overseas (i.e. when a US estate tax return or final income tax return is filed). 

Just as a point of reference, US social security benefits are normally taxed by the US (to the extent they are taxed at all) and exempted (in some manner or other) by the country where a US citizen is resident. 

You may want to check IRS publication 54 (for Americans resident overseas) for information from the US side on how these treaty matters work. They also give information in this publication about the specific treaties with Italy and other countries.
Cheers,
Bev


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## TerriBradley (Aug 9, 2011)

Hi Bev~
Thanks for taking the time to repsond, and for the helpful information! I appreciate it.


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