Passive Income?

[Sally Schlegel]

Hello –

Wondering how Italy taxes passive income, including:
a) social security
b) pensions
c) distributions from 401k/IRA/TSP – both traditional and ROTH

Thank you!

[Chip Stites]

Hi, Sally and thanks for your question.
1. social security is taxed unless you worked directly for the US govt, or a State.
2. Pensions are taxed.
3. distributions from IRAs, 401ks, and TSPs are taxed as are withdrawals from Roth IRAs as Roths are not recognized as tax free by Italian tax law. But, I am not a tax espert and I suggest you consult a “Commercialistda” the equivalent of a CPA. I know a person who is a Commercialista and a CPA in italy who also speaks excellent English, His name is Christian Gulizzi. His email is christian.gulizzi@gulizzi-consulting.com. He is very busy and hard to get to. He does offer a US/Italian tax comparison and I would approach him this way.
4. SEnd him an email and tell him what you need.
5. Ask him if he does this?
6. Ask him what he charges for this and tell him that Chip Stites send you to him!
7. Tell hime you are willing to pay and as what the necessary down payment would be.
8. I would also ask him if he can do both your US and italian taxes – he does!
9. The other thing I would mention is that yoou would like a US/italian tax comparison.
10. That should help. Be patient.

Finally, send me a requaest for the 7% flat tax provinces and towns. Send the reqest to info@thelaughingretirement.com and I will send you the list. That will lower your taxes a lot. Chip Stites, IL Italy Correspondent.

[Sally Schlegel]

thanks! will be a government retiree. have heard Sweden taxes Roth, but hadn’t heard Italy does too. think i need to find a tax advisor who can compare a couple of countries for me, to help me make a decision.

[Chip Stites]

Sally, first, unless you are a government employee or the employee of a state or municipality your SS is taxed! Pensions are taxed as well and distributions from a 401k, IRA, or TSP are taxed. Distributions from Roths are not recognised by the Italian governement as tax free, so are taxed as well. I am not a tax expert but I do know someone who is! His name is Christian Gulizzi and his address is christian.gulizzi@gulizzi-consulting.com. He is a US CPA, an Italian Commericalista and a German tax expert as well. I don’t know what they call them in Germany. He speaks excellent English and Italian. He does my taxes. Please send him and email and use my name “Chip Stites” and tell him you came to me through IL and then to him. He can answer your questions and I wouild suggest you have a US/Italy tax comparison done. Chip Stites, IL Italy Correspondent.

[Chip Stites]

I just sent you the US/ITALY tax advisor I use. Christian Gulizzi. christian.gulizzi@gulizzi-consulting.com. I hope this helps. Chip Stites, IL Italy Correspondent.

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