A London couple in their forties who recently moved to Italy will now have to pay just 10% of their income, thanks to a special scheme for expats launched by the country’s government.
In October, Martin and Joanne Bell (not their real names) sold their two-bedroom apartment in London and moved to Trapani, a fishing village in western Sicily known for its rich red wine, salt flats and fine pink sand And famous.
They bought a four-bedroom cottage in the surrounding countryside for €75,000 (£64,000), which was approved in January after applying for the Italian tax scheme in November.
The special system approved by the Roman government in 2019 is called “emigration plan”. Aimed at attracting qualified and skilled foreign workers, it is available to employed and self-employed persons who are fiscal residents and reside in Italy for at least 183 days per year.
“We’re really lucky,” Ms. Bell said I. “It will require 10% of taxable income until 2023, but following changes made by Parliament last year, Taxable income increased to 50% this year. We were successful in getting our old taxes because we filed in time for the end of 2023. “
She is an interior designer working remotely for several UK and European clients, while her husband is an agent. He monitors the stock exchange using a laptop and seven wall-mounted clocks showing the time around the world.
With the help of a leading immigration law expert in Milan, the Bells were able to use the transition period to offer tax benefits to those who obtained residency before 31 December 2023 Southern Italy accounts for 10% of income, richer north 30%.
In the poorer South, taxes are lower, making it more attractive to encourage foreigners to relocate and revitalize sparsely populated towns. The Bell family will enjoy the lower tax rate for five years, which can then be extended for another five years.
“You really need a local legal expert who knows how to navigate the Italian system and use it to the client’s advantage,” Mr Bell said.
Paying just 10% of income is the lowest tax Italians can pay. Ms Bell said the couple would save significant money compared to the UK. With extra money, the couple wanted to buy a holiday home on the beautiful island of Marettimo, off the coast of Trapani.
“I earn around £70,000 a year, which means I only pay £7,000 in tax, which under the lowest tax band is €1,725 (£1,479). My husband earns £150,000 a year, give or take, Taxes are around €6,500 (£5,600) (top tier). It’s fantastic,” she added.
The Bells decided to leave the UK because the cost of living had soared after Brexit (they voted to remain) and they wanted a simpler lifestyle. However, the tax system is the main temptation.
“We are really looking for some changes and want to find a place where we can be holiday makers and workers at the same time and pay as little tax as possible,” Mr Bell said.
“We are tired of working remotely in the UK and losing the joy of life due to the usual fierce competition and crazy inflation. In Trapani everything is incredibly cheap.”
Dinner for two at the seaside restaurant costs around €40 (£34) and they say fresh fish from the market is virtually free. “We made a big plate of frittata (mixed fried seafood) for €10 (£8.60), which is always slightly above our budget in London and we can afford it once a week. But in Special Rapani, almost every morning I jog to the port to buy the best fresh fish from the fishermen’s nets,” Ms Bell said.
“We are living the dream at such a low cost and know how lucky we are to be one of the last beneficiaries of the 10% taxable income scheme.
“Now, foreigners applying for the scheme will pay tax on 50% of their income – that has a huge impact.”
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