I am dual citizen who plans to relocate to Italy for the 7% tax regime for pensioners who reside in southern Italian comune with less than 20,000 population. With my circumstances and Italian citizenship, it suits me well. I've already consulted Italian tax expert and understand the details. I have minor freelancer business income so that's not big factor for me. I have OK place to live. I would be content with the deal and not try to evade. (For those interested, the 7% rate applies to all foreign income including capital gains, but Italian-source income is taxed at normal rate. Also, the regime exempts︀ qualifying persons from the requirement to declare worldwide assets and pay wealth tax. Note: this︁ is complete separate program from the flat tax or other special Italian tax programs.)
My question is whether there are major disadvantages I'm not considering, such as:
(1) Italian tax︂ Agenzia delle Entrate can be fiercely irrational years in the future when one must pay︃ whatever they demand. BUT I assume the Agenzia has incentive to be somewhat fair in︄ order to attract more persons to live in Italy under this regime. My competent Italian︅ tax advisor tells me to keep good records and not worry.
(2) The government may︆ change the terms in the future. BUT either persons already under the regime may be︇ grandfathered, or I'm prepared to leave Italy if necessary.
(3) Business services performed by me︈ in Italy for foreign clients may be considered Italian-source income and therefore incur normal tax︉ rate and various bureaucratic hassles. BUT I can live with that, or leave if it︊ becomes onerous.
I'm not asking if Italy is a good place to live generally, which︋ is a separate question I've already answered for myself without romantic notions. Plus, I will︌ visit other countries sometimes. Thank you.
My question is whether there are major disadvantages I'm not considering, such as:
(1) Italian tax︂ Agenzia delle Entrate can be fiercely irrational years in the future when one must pay︃ whatever they demand. BUT I assume the Agenzia has incentive to be somewhat fair in︄ order to attract more persons to live in Italy under this regime. My competent Italian︅ tax advisor tells me to keep good records and not worry.
(2) The government may︆ change the terms in the future. BUT either persons already under the regime may be︇ grandfathered, or I'm prepared to leave Italy if necessary.
(3) Business services performed by me︈ in Italy for foreign clients may be considered Italian-source income and therefore incur normal tax︉ rate and various bureaucratic hassles. BUT I can live with that, or leave if it︊ becomes onerous.
I'm not asking if Italy is a good place to live generally, which︋ is a separate question I've already answered for myself without romantic notions. Plus, I will︌ visit other countries sometimes. Thank you.
