Looking to retire (at least part time) abroad.
-
Hello Community. I am an American with dual citizenship with the EU. I have an Italian Passport and plan to retire (at least partially) abroad. I am working on getting the same for my wife as we are both of Italian heritage. Our natural tendency is to look at Italy first. We both speak the language rather fluently. I joined IL as I am serious about doing this within the next 2-3 years. What better place to do research? We will be going to Europe this year and want to know from the group some experiences in living in #1 Italy and where specifically and #2 anywhere else in Europe. Preferably a warmer climate like Spain or Portugal and to be by the water. By having an EU passport purchasing (or at least renting) should make things rather seamless. Would love to get your thoughts!
Many thanks!
Bob C.
PS: Although our adult children live here (FL & TX) we will always have some link back stateside. We are just so fed up with the political climate here that it is accelerating our search abroad!
-
Dear Bob, thanks so much for the question. The Pocess of owning or renting here in Italy is very different than in the US. We look at this as seemless because our culture is designed to move quickly and easily. Not so much in the EU. Part of the reason, at least here in Italy is the banks are completlely responsible for their own loans. Partially because to them we (Americans) can just pick up and move home. The forclosure and resale of a home here takes a lot longer. So, as a resullt you will find the down payment, with fees etc is usualy about 40% to 60% of the purchase price. Also mortgages end or finish at age 75. So, if you are 65 you can only get a ten year mortgage. (I have heard that age 80 is avaialble). Also your agent is not your representative here, he or she represents her or himself, and there is no MLS service. Agents compete against each other they do not work together.
I would also consider the tax implications and if you need help on that I have an excellent resourse. If you reside in Italy for less than 183 days a year you are not taxed here and that can make a huge difference in costs. Italian taxes are higher but they also give you a lot more in return. The RE taxes are paid at closing, on the first home and there are no other RE taxes beyond that. RE taxes vary from Autonomus Region to Autonomous Region but in genteral it is about 0.25%.
I would suggest that your best choice is to travel here and visit where you think you might like to live. I often suggest considering climate and topography first. You suggested water, as opposed to mountains and warmer as opposed to cooler. So I would have you look at Puglia, on the bootheal, Basilicata in the arch of the boot, Calabria, on the toe and all of Sicily. That can be a lot of explortng., but it should also be a lot of fun. Southern Italy comes under the 7% tax offer ( a Flat tax of 7% for a decade) for new legal immigrants.
This should get you started and if you would like help with taxes and Visas I can put you in touch with professionals who can make the process a lot clearer. and easier in the long run. Email me at info@thelaughingretirement.com. The one thing I would suggest, is that you plan this as carefully as possible as the biggest mistake we make when we comtemplate something like this is to think that anything will work the same way here as it does in the US.
Let me know if I can be of further assistance.
Chip Stites, Italy International LIving Correspondent, Reiti Italy. -
i am curious about the billage she lives in. I livd in lugano swyz gor 11 years and sm very familiar with maggiori