In reply to A newbie all over again! by Annec
HiYou will not be entitled to permanent residency as US citizens. With your Permesso di Soggiorno you will be allowed residency on certain criteria - in your case probably elective residency. However, as residents you will be subject to IVIE and IVIFE which measn you will pay the Italian govt 1% of your world wide patrimony in tax per year - that is private and business - which will mean you will probably want to revise your plans. You will need a rental contract or a registered house purchase to gain reidency and proof that you will not be aburden on the Italian state, so you will also need to show you have a certain annual income and health insurance.