While this is not a question, it will certainly address questions which Americans may have about living in Italy.Any American thinking about living and working as a resident in a foreign country may want to read this article first.________________
FAST (Fixing America’s Surface Transportation) Act was signed into law on December 4, 2015. It affects any U.S. citizen with foreign employment/income/assets outside the United States.Passports and passport renewals may be denied to any taxpayer identified by the IRS as seriously delinquent. A seriously delinquent tax debt includes any outstanding debt for federal taxes in excess of $50,000 (indexed each year for inflation), including interest and penalties. Even if not meeting the definition of delinquent, the IRS reserves the right to deny a passport to any U.S. citizen not fulfilling their U.S. tax obligations.Passport applications may also be denied for any applicant for a passport if the applicant fails to provide a social security number or provides an incorrect or invalid social security number.____________________________________________Tips For U.S. Expats Coping With New FAST Law Affecting PassportsIf you’re a U.S. taxpayer living outside the country or otherwise have non-U.S. income or assets of any sort, don’t assume that the preparation of your tax return is easy and don’t assume that your tax preparer knows what they’re doing.If you have any of the following, you might consider your return to be some somewhat complicated: A foreign pension, non-U.S. investment funds, ownership of a foreign entity (company, partnership, trust, etc.), signatory or other authority over a foreign financial account, a foreign inheritance, expatriate benefits from your employer, stock options, earned income more than around $100,000 a year in a foreign country, foreign bank account balances over $10,000, foreign financial assets over $50,000, a non-citizen spouse, foreign life insurance, mortgage in a foreign currency, sale or rental of real estate outside the U.S., self-employment income and more.Read more:http://blogs.wsj.com/expat/2015/12/13/tips-for-u-s-expats-coping-with-new-fast-law-affecting-passports/
There are ferries which regularly travel from Naples to Sorrento, Amalfi, and Capri. It's a great way to see the coastline.Also, if you are looking for something more romantic, here's some information about renting a car and driver. One of my friends just used this service two weeks ago from Naples to Positano and back. He highly recommends it.Cost was $100 and the driver was great. It's a small business owned by Salvatore and his family [Salvatore: +39 3385451697 / Giovanna: +39 3333425902].La Mammola Car Service Transfer & Excursions [http://www.xploreamalficoast.it/sito/en/aboutus]http://www.tripadvisor.com/Attraction_Review-g194863-d2181539-Reviews-La_Mammola_Car_Service_Transfer_Excursions-Positano_Amalfi_Coast_Campania.htmlThis following method of travel is more complicated, but quite interesting if you want to add some adventure to your travels. There is a train to Sorrento from Naples. Circumvesuviana Trains run frequently between Napoli Centrale (Naples main train station) and Sorrento on the Amalfi Peninsula. Circumvesuviana is a private train company. When you get to the Sorrento station there is a bus just outside the entrance which goes along the Almafi Coast to the town of Amalfi, with stops along the way.To get to the Circumvesuviana Garibaldi Station in the Naples train station (Napoli Centrale), go downstairs. Follow the signs! Tickets for these trains (inexpensive) must be bought at a Circumvesuviana station. There are also other stops for this train line in Naples.Train time to Sorrento is one hour, seven minutes. Trains run every half hour (currently leaving Naples at 10 and 40 minutes past the hour starting at 5:10AM with last train at 22:43 and from Sorrento starting at 5:37AM from Sorrento with the last train at 22:25). There may be fewer trains on Sundays or holidays.Circumvesuviana trains also go to Pompeii, Herculaneum, and Mount Vesuvius. For Pompeii, get off at Pompeii Scavi stop, 36 minutes from Naples. BE SURE YOU GET OFF AT THE POMPEII SCAVI (excavation) STOP! Trains for Herculaneum (Ercalano) and Mount Vesuvius depart several times an hour (don't take the Sorrento line). For the Ercalano archaeological site, get off at Ercalano Scavi, 17 minutes from Naples.To get to Mount Vesuvius, get off the train at Ercolano station where you can catch a Compagnia Trasporti Vesuviani bus outside the station. Check the Circumvesuviana web site for current schedules. Private tours to Mt. Vesuvius also leave from the Pompeii Scavi train stop.
Unfortunately the money from individuals is just not significant enough for the banks. It's easier for them to simply refuse to open accounts for Americans, than to risk running afoul of US law. Too much paperwork and excessive penalties - just not worth it for the banks. Now if you have a large corporate account, that's a whole different story.
As I learn more I'll keep you posted. I'm hoping the initial closure of accounts was a knee-jerk reaction to FATCA. After banks have a chance to see what little impact it has on their operations, this issue may disappear. Please let me know if you hear of anyone experiencing a problem in Italy. Grazie mille!
I brought this discussion over from Facebook._____________________________The issue here is not about paying US taxes. This is about foreign banks refusing to allow Americans to own bank accounts of any kind because of the Foreign Accounts Taxation Compliance Act (FATCA). This law requires all foreign banks to disclose the financial information of any American with assets over $50,000 sitting in banks outside of the US. While the intent of FATCA is the US government's ability to identify tax cheats and to discourage potential tax fraud, the law is having unforeseen negative effects on US ex-pats.Even if you have less than $50,000, you are not immune from the law's effects. FATCA gives the US government far-reaching power into the affairs of foreign banks. These banks don't want the US government poking around in their business, so to avoid the possibility of excessive fines for even just one unreported account, many foreign banks are choosing to deny bank account access to all Americans.Because of this, many US dual-citizen ex-pats are being forced to renounce their US citizenship to maintain their banking privileges. Those Americans without dual citizenship can't find work abroad because FATCA is preventing them from acquiring an account with a local bank. Being unable to open and/or maintain a local bank account will prevent most Americans from working abroad legally.No one yet knows how pervasive this bank account problem will be for Americans living abroad. If the US government acts responsibly, it may become a non-issue, but that's small consolation for the Americans who have already felt compelled to renounce their US citizenship.----------(From Facebook) Armondo Ogden - Isn't there still Swiss and off shore accounts. Seems like there are plenty of options. I think people are losin their citizenship because it's not what it used to be. And would rather not be American at all----------Earl Owens' reply: The Swiss banking system has been cooperating with the Internal Revenue Service for a number of years now. Off-shore banks have continued to be a problem, but FATCA now overcomes that barrier. Note, that if you live and work in Italy, a Swiss or off-shore account won't help you. You'll need a local bank account.Foreign banks don't want the IRS meddling in their business and can still refuse to cooperate with the IRS, but if they do, the US government is now empowered to seize assets held in the United States. For every legitimate foreign bank this is a powerful incentive to cooperate. The solution for many banks, mostly those in Europe, has been to close the accounts held by Americans.----------To Armondo Ogden - I don't know your nationality, but I doubt there are many Americans who would take the forfeiture of their citizenship as lightly as you might suggest. Despite its problems, America is still the land of opportunity and the greatest country on Earth.
The $50,000 threshhold is the requirement for foreign banks to automatically report your assets to the IRS. Many banks are now refusing to deal with Americans, regardless of their total assets, because of the law's far-reaching power into the affairs of these banks. Banks don't want the US government poking around in their business, and I don't blame them. With the possibility of excessive fines, many foreign banks are choosing to avoid these problems simply by denying bank access to all Americans. While the intent of the law is the US government's ability to identify tax cheats and to discourage potential tax fraud, the law is having unforeseen negative effects on US ex-pats.I would be interested in hearing from you if this becomes a problem with any of your American friends in Florence.
Certainly that's good advice, but if an American ex-pat can't find a bank that will allow them to open and/or maintain an account, then the quality of the accountant may not matter. No one yet knows how pervasive this problem will be. If the US government acts responsibly, it may become a non-issue, but that's small consolation for the Americans who have already felt compelled to renounce their US citizenship.
While the intent of the law is the US government's ability to identify tax cheats and to discourage potential tax fraud, the law's provisions give the US government far-reaching power into the affairs of foreign banks. Because of this, many banks are now refusing to allow accounts owned by a US citizen, regardless of the amount in the account. They won't even permit joint accounts with a citizen of the country.To work legally in most foreign countries Americans must have an account with a local bank, usually in local currency, not in US dollars. Being unable to open and/or maintain local bank accounts will prevent Americans from working legally abroad, which is the primary reason so many US dual-citizen ex-pats are now renouncing their US citizenship.
I'd suggest you consult an Italian accountant, though I have found they are quite expensive compared to many other countries (probably because the Italian tax code is so complicated). I would also approach your employer for advice. Sweden may have a double taxation agreement with Italy that would allow you to reduce your Swedish tax obligation by the amounts paid to Italy.For example, U.S. citizens taxed abroad may qualify for foreign earned income and foreign housing exclusions and the foreign housing deduction. If you are a U.S. citizen living abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation ($97,600 for 2013). In addition, you can exclude or deduct certain foreign housing amounts.Sweden may have a similar tax rule, making it important that you talk to a tax professional._______________________________________________Who is liable to pay income tax in Italy?http://www.justlanded.com/english/Italy/Italy-Guide/Money/Income-Tax-LiabilityTAX GUIDE FOR FOREIGNERS (2009)http://www.agenziaentrate.gov.it/wps/wcm/connect/e9b729004289338f9c11ffe4308d5f44/guida+stranieri+eng.pdf?MOD=AJPERES&CACHEID=e9b729004289338f9c11ffe4308d5f44Living in Italyhttp://internationalliving.com/countries/italy/taxes/_______________________________________________Foreigners in Italy hit by tax changeshttp://www.thelocal.it/20131008/foreigners-in-italy-hit-by-tax-changesForeigners will now have to declare all assets, which would usually include property, shares and savings accounts, regardless of their value, after the €10,000 threshold was scrapped.Though they won't be charged any extra tax on smaller assets, they face stiff penalties for failing to declare the assets and will likely have to undergo more cumbersome reporting procedures, Gareth Horsfall, a financial planner at Spectrum IFA Group in Rome, told The Local.“A new internal team of the Guardia di Finanza (finance police) has also been set up to monitor transactions taking place abroad for Italian residents,” Horsfall said.“This is in line with European and G20 guidelines regarding a free share of tax and financial information.”In 2012, Italy introduced new taxes on foreigners who have homes overseas (0.76 percent on the rateable value if the property is in Europe and on the market value if it is outside Europe). In addition, they are also taxed on non-property foreign assets at a rate of 0.15 percent, Horsfall said.Still, foreigners will get some relief after IMU, the controversial property tax, was scrapped in August. It will be replaced next year with a service charge, which is expected to include all local taxes such as waste collection.“From 2014, it will no longer be the IMU we have known so far,” Italian Prime Minister Enrico Letta said in August.“It will have a new name, TASER or tax on municipal services.”The service tax is expected to combine all present local taxes, such as waste collections, in one bill. While calculated on a national basis, it should allow more autonomy for municipal authorities to set the tax rates.Italy's Deputy Economy Minister Pier Paolo Baretta confirmed that IMU will be superseded before the end of this year by the service tax.This could spell bad news for expats who rent property in Italy or are provided with accommodation by their employer. Under the IMU regime, the tax was payable by the property owner, not the tenant. With the service bill, however, the burden shifts to the occupant.Currently, tenants are only liable to pay rent, condominium charges, and a refuse tax. Alex Gomez, a British student living in Rome, said: “Italian taxes are really confusing and this year even more so. But it looks like tenants will have to pay this service tax on top of the other expenses or be fined.”
The area north of the Roma Ostiense station is very nice, though you'll probably pay more for an apartment. While the area south of the station doesn't have as much eye appeal, it is not a bad area at all. In places it has an old, worn look making it seem less attractive, but there is so much housing available in the area south of the station, you'll probably get some great bargains compared to the rest of Rome!Ostiense doesn't have the same exciting, well-known night spots like the historical center of Rome, but there are lots of wonderful local places to soak in the culture without the tourist prices.LUSPIO is only about 2.5km from Piramide Metro Station and the Porta San Paolo and Roma Ostiense train stations, making it possible to easily get anywhere in Rome, or Italy, using public transportation. Garbatella Metro is even closer (about 1.5km). There are also several bus routes near the school making it very easy to access the Metro and train stations.Based on crime statistics, Rome is one of the safest cities in Europe and by far safer than all major US cities. Pickpocketing is the one crime where Rome outranks most others, so plan accordingly when you're out.Read about Ostiense: https://www.airbnb.com/locations/rome/ostienseGood luck!
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FAST (Fixing America’s Surface Transportation) Act was signed into law on December 4, 2015. It affects any U.S. citizen with foreign employment/income/assets outside the United States.Passports and passport renewals may be denied to any taxpayer identified by the IRS as seriously delinquent. A seriously delinquent tax debt includes any outstanding debt for federal taxes in excess of $50,000 (indexed each year for inflation), including interest and penalties. Even if not meeting the definition of delinquent, the IRS reserves the right to deny a passport to any U.S. citizen not fulfilling their U.S. tax obligations.Passport applications may also be denied for any applicant for a passport if the applicant fails to provide a social security number or provides an incorrect or invalid social security number.____________________________________________Tips For U.S. Expats Coping With New FAST Law Affecting PassportsIf you’re a U.S. taxpayer living outside the country or otherwise have non-U.S. income or assets of any sort, don’t assume that the preparation of your tax return is easy and don’t assume that your tax preparer knows what they’re doing.If you have any of the following, you might consider your return to be some somewhat complicated: A foreign pension, non-U.S. investment funds, ownership of a foreign entity (company, partnership, trust, etc.), signatory or other authority over a foreign financial account, a foreign inheritance, expatriate benefits from your employer, stock options, earned income more than around $100,000 a year in a foreign country, foreign bank account balances over $10,000, foreign financial assets over $50,000, a non-citizen spouse, foreign life insurance, mortgage in a foreign currency, sale or rental of real estate outside the U.S., self-employment income and more.Read more:http://blogs.wsj.com/expat/2015/12/13/tips-for-u-s-expats-coping-with-new-fast-law-affecting-passports/
There are ferries which regularly travel from Naples to Sorrento, Amalfi, and Capri. It's a great way to see the coastline.Also, if you are looking for something more romantic, here's some information about renting a car and driver. One of my friends just used this service two weeks ago from Naples to Positano and back. He highly recommends it.Cost was $100 and the driver was great. It's a small business owned by Salvatore and his family [Salvatore: +39 3385451697 / Giovanna: +39 3333425902].La Mammola Car Service Transfer & Excursions [http://www.xploreamalficoast.it/sito/en/aboutus]http://www.tripadvisor.com/Attraction_Review-g194863-d2181539-Reviews-La_Mammola_Car_Service_Transfer_Excursions-Positano_Amalfi_Coast_Campania.htmlThis following method of travel is more complicated, but quite interesting if you want to add some adventure to your travels. There is a train to Sorrento from Naples. Circumvesuviana Trains run frequently between Napoli Centrale (Naples main train station) and Sorrento on the Amalfi Peninsula. Circumvesuviana is a private train company. When you get to the Sorrento station there is a bus just outside the entrance which goes along the Almafi Coast to the town of Amalfi, with stops along the way.To get to the Circumvesuviana Garibaldi Station in the Naples train station (Napoli Centrale), go downstairs. Follow the signs! Tickets for these trains (inexpensive) must be bought at a Circumvesuviana station. There are also other stops for this train line in Naples.Train time to Sorrento is one hour, seven minutes. Trains run every half hour (currently leaving Naples at 10 and 40 minutes past the hour starting at 5:10AM with last train at 22:43 and from Sorrento starting at 5:37AM from Sorrento with the last train at 22:25). There may be fewer trains on Sundays or holidays.Circumvesuviana trains also go to Pompeii, Herculaneum, and Mount Vesuvius. For Pompeii, get off at Pompeii Scavi stop, 36 minutes from Naples. BE SURE YOU GET OFF AT THE POMPEII SCAVI (excavation) STOP! Trains for Herculaneum (Ercalano) and Mount Vesuvius depart several times an hour (don't take the Sorrento line). For the Ercalano archaeological site, get off at Ercalano Scavi, 17 minutes from Naples.To get to Mount Vesuvius, get off the train at Ercolano station where you can catch a Compagnia Trasporti Vesuviani bus outside the station. Check the Circumvesuviana web site for current schedules. Private tours to Mt. Vesuvius also leave from the Pompeii Scavi train stop.
Unfortunately the money from individuals is just not significant enough for the banks. It's easier for them to simply refuse to open accounts for Americans, than to risk running afoul of US law. Too much paperwork and excessive penalties - just not worth it for the banks. Now if you have a large corporate account, that's a whole different story.
As I learn more I'll keep you posted. I'm hoping the initial closure of accounts was a knee-jerk reaction to FATCA. After banks have a chance to see what little impact it has on their operations, this issue may disappear. Please let me know if you hear of anyone experiencing a problem in Italy. Grazie mille!
I brought this discussion over from Facebook._____________________________The issue here is not about paying US taxes. This is about foreign banks refusing to allow Americans to own bank accounts of any kind because of the Foreign Accounts Taxation Compliance Act (FATCA). This law requires all foreign banks to disclose the financial information of any American with assets over $50,000 sitting in banks outside of the US. While the intent of FATCA is the US government's ability to identify tax cheats and to discourage potential tax fraud, the law is having unforeseen negative effects on US ex-pats.Even if you have less than $50,000, you are not immune from the law's effects. FATCA gives the US government far-reaching power into the affairs of foreign banks. These banks don't want the US government poking around in their business, so to avoid the possibility of excessive fines for even just one unreported account, many foreign banks are choosing to deny bank account access to all Americans.Because of this, many US dual-citizen ex-pats are being forced to renounce their US citizenship to maintain their banking privileges. Those Americans without dual citizenship can't find work abroad because FATCA is preventing them from acquiring an account with a local bank. Being unable to open and/or maintain a local bank account will prevent most Americans from working abroad legally.No one yet knows how pervasive this bank account problem will be for Americans living abroad. If the US government acts responsibly, it may become a non-issue, but that's small consolation for the Americans who have already felt compelled to renounce their US citizenship.----------(From Facebook) Armondo Ogden - Isn't there still Swiss and off shore accounts. Seems like there are plenty of options. I think people are losin their citizenship because it's not what it used to be. And would rather not be American at all----------Earl Owens' reply: The Swiss banking system has been cooperating with the Internal Revenue Service for a number of years now. Off-shore banks have continued to be a problem, but FATCA now overcomes that barrier. Note, that if you live and work in Italy, a Swiss or off-shore account won't help you. You'll need a local bank account.Foreign banks don't want the IRS meddling in their business and can still refuse to cooperate with the IRS, but if they do, the US government is now empowered to seize assets held in the United States. For every legitimate foreign bank this is a powerful incentive to cooperate. The solution for many banks, mostly those in Europe, has been to close the accounts held by Americans.----------To Armondo Ogden - I don't know your nationality, but I doubt there are many Americans who would take the forfeiture of their citizenship as lightly as you might suggest. Despite its problems, America is still the land of opportunity and the greatest country on Earth.
The $50,000 threshhold is the requirement for foreign banks to automatically report your assets to the IRS. Many banks are now refusing to deal with Americans, regardless of their total assets, because of the law's far-reaching power into the affairs of these banks. Banks don't want the US government poking around in their business, and I don't blame them. With the possibility of excessive fines, many foreign banks are choosing to avoid these problems simply by denying bank access to all Americans. While the intent of the law is the US government's ability to identify tax cheats and to discourage potential tax fraud, the law is having unforeseen negative effects on US ex-pats.I would be interested in hearing from you if this becomes a problem with any of your American friends in Florence.
Certainly that's good advice, but if an American ex-pat can't find a bank that will allow them to open and/or maintain an account, then the quality of the accountant may not matter. No one yet knows how pervasive this problem will be. If the US government acts responsibly, it may become a non-issue, but that's small consolation for the Americans who have already felt compelled to renounce their US citizenship.
While the intent of the law is the US government's ability to identify tax cheats and to discourage potential tax fraud, the law's provisions give the US government far-reaching power into the affairs of foreign banks. Because of this, many banks are now refusing to allow accounts owned by a US citizen, regardless of the amount in the account. They won't even permit joint accounts with a citizen of the country.To work legally in most foreign countries Americans must have an account with a local bank, usually in local currency, not in US dollars. Being unable to open and/or maintain local bank accounts will prevent Americans from working legally abroad, which is the primary reason so many US dual-citizen ex-pats are now renouncing their US citizenship.
I'd suggest you consult an Italian accountant, though I have found they are quite expensive compared to many other countries (probably because the Italian tax code is so complicated). I would also approach your employer for advice. Sweden may have a double taxation agreement with Italy that would allow you to reduce your Swedish tax obligation by the amounts paid to Italy.For example, U.S. citizens taxed abroad may qualify for foreign earned income and foreign housing exclusions and the foreign housing deduction. If you are a U.S. citizen living abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation ($97,600 for 2013). In addition, you can exclude or deduct certain foreign housing amounts.Sweden may have a similar tax rule, making it important that you talk to a tax professional._______________________________________________Who is liable to pay income tax in Italy?http://www.justlanded.com/english/Italy/Italy-Guide/Money/Income-Tax-LiabilityTAX GUIDE FOR FOREIGNERS (2009)http://www.agenziaentrate.gov.it/wps/wcm/connect/e9b729004289338f9c11ffe4308d5f44/guida+stranieri+eng.pdf?MOD=AJPERES&CACHEID=e9b729004289338f9c11ffe4308d5f44Living in Italyhttp://internationalliving.com/countries/italy/taxes/_______________________________________________Foreigners in Italy hit by tax changeshttp://www.thelocal.it/20131008/foreigners-in-italy-hit-by-tax-changesForeigners will now have to declare all assets, which would usually include property, shares and savings accounts, regardless of their value, after the €10,000 threshold was scrapped.Though they won't be charged any extra tax on smaller assets, they face stiff penalties for failing to declare the assets and will likely have to undergo more cumbersome reporting procedures, Gareth Horsfall, a financial planner at Spectrum IFA Group in Rome, told The Local.“A new internal team of the Guardia di Finanza (finance police) has also been set up to monitor transactions taking place abroad for Italian residents,” Horsfall said.“This is in line with European and G20 guidelines regarding a free share of tax and financial information.”In 2012, Italy introduced new taxes on foreigners who have homes overseas (0.76 percent on the rateable value if the property is in Europe and on the market value if it is outside Europe). In addition, they are also taxed on non-property foreign assets at a rate of 0.15 percent, Horsfall said.Still, foreigners will get some relief after IMU, the controversial property tax, was scrapped in August. It will be replaced next year with a service charge, which is expected to include all local taxes such as waste collection.“From 2014, it will no longer be the IMU we have known so far,” Italian Prime Minister Enrico Letta said in August.“It will have a new name, TASER or tax on municipal services.”The service tax is expected to combine all present local taxes, such as waste collections, in one bill. While calculated on a national basis, it should allow more autonomy for municipal authorities to set the tax rates.Italy's Deputy Economy Minister Pier Paolo Baretta confirmed that IMU will be superseded before the end of this year by the service tax.This could spell bad news for expats who rent property in Italy or are provided with accommodation by their employer. Under the IMU regime, the tax was payable by the property owner, not the tenant. With the service bill, however, the burden shifts to the occupant.Currently, tenants are only liable to pay rent, condominium charges, and a refuse tax. Alex Gomez, a British student living in Rome, said: “Italian taxes are really confusing and this year even more so. But it looks like tenants will have to pay this service tax on top of the other expenses or be fined.”
The area north of the Roma Ostiense station is very nice, though you'll probably pay more for an apartment. While the area south of the station doesn't have as much eye appeal, it is not a bad area at all. In places it has an old, worn look making it seem less attractive, but there is so much housing available in the area south of the station, you'll probably get some great bargains compared to the rest of Rome!Ostiense doesn't have the same exciting, well-known night spots like the historical center of Rome, but there are lots of wonderful local places to soak in the culture without the tourist prices.LUSPIO is only about 2.5km from Piramide Metro Station and the Porta San Paolo and Roma Ostiense train stations, making it possible to easily get anywhere in Rome, or Italy, using public transportation. Garbatella Metro is even closer (about 1.5km). There are also several bus routes near the school making it very easy to access the Metro and train stations.Based on crime statistics, Rome is one of the safest cities in Europe and by far safer than all major US cities. Pickpocketing is the one crime where Rome outranks most others, so plan accordingly when you're out.Read about Ostiense: https://www.airbnb.com/locations/rome/ostienseGood luck!