Tax comparison
Your 7% Saving: Eligible Town vs Ordinary-Tax Italy
Enter your foreign retirement income. We compare the Italian tax on the same income if you move to a 7%-eligible southern town (flat 7% substitute tax) versus a non-eligible Italian location (a northern city or a town over the population limit, where ordinary Italian IRPEF applies), and show the annual and 10-year Italian-side saving. Note: US tax on this income continues regardless of which Italian town you choose.
Italian taxable base: €43,000 (at 0.8600 EUR/USD)
USD reference: $50,000 ~ €43,000
The Italian 7% substitute tax (Art. 24-ter TUIR) applies to your foreign-source income when you register as a resident in a qualifying southern-Italian town with fewer than 20,000 inhabitants. A non-eligible Italian location (a northern city or a town over the population limit) is subject to ordinary IRPEF instead. Both columns below represent the Italian tax on the same income. US federal tax on this income continues regardless of which Italian town you choose.
Informational only. Not tax advice. US tax on this income continues regardless of the Italian town chosen. Regional and municipal surcharges (~1.5 to 3%) are excluded from the IRPEF figure shown, so the real Italian-side saving may be somewhat larger. Verify with a US cross-border advisor (US CPA or enrolled agent) and an Italian commercialista.
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This tool is informational only. It does not constitute tax or legal advice. Confirm your specific position with a qualified Italian commercialista AND a US cross-border tax advisor (a US CPA or enrolled agent familiar with the US-Italy treaty) before making any decision.