7% flat tax for people retiring to Italy...T&Cs apply

This is a fantastic piece of news for people looking to retire to Italy.  Italy has decided to follow a much admired Portuguese route to bringing more money into the country.    

As of 1st January 2019, anyone retiring in Italy will be eligible for a flat tax of only 7% on their 'redditto complessivo' (total income subject to income tax) for a period of 5 years from the date of residency. 

What's the catch? 

Well, you didn't think it would be so easy did you?   As always there is a catch. The move has been designed to attract foreign retirees and returning retired Italians back to Italy, but the main condition is that it is a drive to repopulate the South of Italy....and therein lies the catch. The move to Italy must be to one of these areas: 

• Sicilia;
• Calabria;
• Sardegna;
• Campania;
• Basilicata;
• Abruzzo;
• Molise;
• Puglia.

It must also be preceded by 5 years NON residency in Italy, and to a town/village with no more than 20,000 inhabitants. 

For anyone thinking about moving to Italy for retirement purposes, this is a fantastic opportunity.  For someone seeking the rural, quiet life, then there are some amazing places to choose from in the regions listed above. 

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Votes for Life

I have been asked a number of times recently about the possibility/progress of the removal of the rule which forbids British citizens from voting in UK elections and referendums after 15 years of non-resident status. You may be aware that a bill is passing through UK Parliament at the moment to remove this rule. I just happened to look at the official website recently which gives a very clear track of what has happened to date and the process that the bill has yet to pass through.   You can find the link below. I would also suggest signing up to any updates regarding this bill for anyone who is interested or even affected by the 15 year rule. 

On July 5th 2019 I will have been away from the UK for 15 years and will no longer be able to vote in UK elections. So, it is important to me that another Referendum, if it were to happen, is announced before this cut off, or that the 15 year limit is removed. I will add that to my list of New Year wishes. 

https://services.parliament.uk/bills/2017-19/overseaselectors.html

Market Volatility

Lastly, I want to make a quick comment about financial market volatility.  You may have seen in the last few weeks that financial markets, particularly stock markets, have started to sell off and values have started to fall.   This has been somewhat expected.    We have had multiple years of quantitative easing, which has pushed markets higher since the financial crisis, 10 years ago.   Governments around the world have now realised that this is akin to keeping a patient alive on life support when they no longer require it.    Clearly, that patient is going to have some angst about coming off life support, after 10 years on it, so naturally, panic and fear is going to set in.   However, that patient is fundamentally healthy and can survive on their own. This represents, more or less, the world economy. It has problems, but nothing that cannot be handled without the need for more life support.   But, it does mean that financial markets are likely to experience some volatility in 2019.  I will report on this more at the start of the New Year, but the message is: don't panic.   It's part of the process and there is a much more dangerous force at work than financial market movements. I will report on this in 2019.   This is the one you want to watch!
 

And on that note, have a Very Merry Christmas and a Happy New Year

I will be blessing you with more of my financial musings next year.  There will be lots to talk about, as usual.   Whatever happens, I will be here to help you drive (with your Italian registration plates!!)  through the maze of rules, regulations and turmoil ahead.