SHARE
COPY LINK
For members

US

‘What I wish I’d known’: An American’s advice on getting residency in Italy

Moving to Italy as an American retiree was "exhausting and relentless", writer Mark Hinshaw tells us. Here's his account of the process.

'What I wish I'd known': An American's advice on getting residency in Italy
Finding you way through Italy's bureaucratic maze is a challenge - but it can be done. Photo: AFP

Most Americans visiting Italy will never need to go through what we went through. An American passport allows you to spend up to 90 days in any 180 day period, happily exploring the country and the culture.

An American can even buy property In Italy. But you are held to a maximum stay of 90 days, which works for people with summer homes.

FOR MEMBERS: The ultimate guide to getting residency in Italy

However. Wanting to live in Italy as a legal resident is a whole different story. 

Over a two-year period, we counted 168 discrete steps: I would compare it to being in a maze, with dead ends, blind corners, and confusing circuitous paths.

We wish we had been mentally prepared.

For those wishing to live in Italy longer or permanently, we offer three cautionary notes:

1. Everything will take longer. Much longer. Likely double or triple anything you guess.

2. There will always be another form required. Something not on any list you find online.

3. Eventually, it will come down to your dealing with a real person behind a glass-fronted counter. If you have an entitled attitude, they will quickly see that. I guarantee that person will find a rule that says no to you.

These are the three big permits you'll need, along with my experience applying for them.

1. The visa

To get one of these glued into your US passport, you'll probably need to fall into one of the following categories: a student with proof of enrolment, a worker with a signed job contract, a dependent of someone else with the legal right to be in Italy, or a person who doesn't plan to work and has a sufficient pension or savings to support themselves.


Photo: DepositPhotos

You apply to the Italian consulate that serves your region in the US. They will require a long list of documents. You will also need to get an appointment for a personal appearance, which you can get online.

This step is where Cautionary Note #3 is crucial. We came with the attitude of being supplicants. Every document they asked for we had in a tabbed file.

While we were waiting, we saw a student turned away in tears because she did not have a copy of her degree curriculum. Two acquaintances were rejected because they wanted to live near their son who was stationed in Italy.

They will want bank records, a rental or purchase agreement, health insurance and an FBI background check (a whole other process!). You also have to prove your ability to live with a certain income. (The amount varies by region.)

Approving a visa application will take several months. Meanwhile, a visa is usually only valid for a year from the date of application. That gives you enough time – but just barely – to complete the next steps.

2. The permesso di soggiorno

Essentially this allows you to stay longer than 90 days. You can only apply for it once you are in Italy: it necessitates going to the regional police headquarters, where they will want everything you gave the consulate, plus more. You will be finger-printed and checked by Interpol.

It took us several false leads to realize that the Questura (police headquarters) was even the right place. Our British-Italian real estate agent misled us, saying “Oh, your local city can handle it”. Not true.


Photo: DepositPhotos

We heard about a non-profit agency that offers assistance. We found ourselves waiting in tiny room packed with refugees. But the agency did help us fill out forms and send them electronically. After two hours, they handed us a thick stack of completed forms and told us to mail them from a nearby post office. They said: “Keep the receipt.” (Spoiler alert: VERY IMPORTANT!)

Two months later we received a notice to appear at the Questura, located in a city an hour away. We were given a specific time – 9:00 am. This turned out to be only the time they opened the office.

As we walked in the door, we again found ourselves in another tiny waiting room. With 50 other people. Standing up. For three hours.

Only after standing two hours did we realize we had to put a form in a box near a door. There was no sign saying to do this.

FOR MEMBERS: 'How Little Britain helped me deal with Italian bureaucracy'

After getting called, we were told we had to attend an Italian civics class before we could receive a permesso. They gave us a date for the class, which we assumed was there. Not so. We showed up only to be told it was in another city. An hour away. 

And, because we were in the wrong place, we missed the class. And there was no available date for the class for two more months.

Finally, we received a text message to pick up the permesso – a full five months after we first applied. Same waiting room. Another 50 people standing for three hours. I was the next to last to be called. Before me, a couple was called up to the window. The clerk asked, “Where is your postal receipt?” They had not kept it. So they were rejected.

In the ensuing discussion, the clerk slapped a receipt onto the glass window. I saw it. And I realized I had it!

Two minutes later I had my permesso.

3. The identity card

Everyone in Italy must carry this card at all times. It is as important as a driving licence in the US. The electronic version has key information on it required by banks and even some stores when you make large purchases.

FOR MEMBERS: How to survive bureaucracy in Italy: the essential pieces of Italian paperwork


Photo: DepositPhotos

The place to apply for your ID card is the anagrafe, or registry office. Book your appointment online via the Interior Ministry website to stand a better chance of finding someone there.

Good luck and don't let the crazy process get to you!

Mark Hinshaw is a retired city planner who moved to Le Marche with his wife two years ago. A former columnist for The Seattle Times, he contributes to journals, books and other publications.

Would you like to contribute a guest post to The Local? Get in touch.

This article was originally published in 2019.

Member comments

  1. I just received my Permesso a month ago. I read this and realize how fortunate I am to be married to an Italian national who knows how to charm people. My wife called the Questura and had a long conversation that set the stage. We came in with the documents they had asked for and we were out in an hour. The only long wait was in doing my fingerprints on the other side of Torino. All told, I think I put about three hours into this. I felt like it was the first time that the Italian bureaucracy ever went smoothly for me. I wonder if they haven’t streamlined certain processes because of the influx of refugees.

  2. My husband and I had similar experiences described above. We finally did get our residency in April 2018 for two years. Therefore, it will expire in April 2020 so we have to go through the process of renewing. That’s not the issue. We were told that once we got residency, we were subject to Italian taxes even though all of our income derives from the U.S. and we pay income taxes in the U.S. We are not planning on living in Italy year round. We are just trying to get residency so that we are not bound by the 90 day rule. Has anyone else had tax issues that might help us out?

    1. Murphy, this is an old thread so perhaps obsolete, but I’d love an update on how you ended up handling the taxes so as not to pay twice, and a lot. Thank you!

  3. It seems pretty simple (at the moment) for Brits. Everything for us was processed by the same friendly lady in our village Comune, with minimal difficulty. She even hand-delivered our residency certificate to our door. It’s obviously nothing like that if you’re not European, and also worse for Europeans living in a large city.

    Murphy, on the tax issue you’ll need to find an accountant and file a tax return every year if you’re resident in Italy. We also have no Italian income (retired), but our accountant has requested our British tax returns, UK income details and information on the value of our property in the UK. I don’t think you can avoid it if you want to preserve your Italian resident status.

  4. I’ve gotten and then renewed my permesso 5 times. I have never had nearly so hard a time. 168 steps?? Civics class?1?! I am sure that each questura is different, but wow. In Perugia the person behind the sportello is always patient and helpful.

  5. We have renewed our permesso 3 times after the initial 1 year permesso, and we had many of the same experiences as Mark Hinshaw. Our Questura is in Ascoli Piceno. The civics class is part of the initual authorization. It was normally a one night class, but the rule changed between the notification of the date of the class and when we actually got to the class. Now it was scheduled for two consecutive nights. It counts for about half the points you need to qualify for continued ability to receive your Permesso. The other is passing the language test. He is right about all the forms you need, and that it isn’t always what their information on their internet site says is required. Also the forms can be picked up at the post office, and after completing it all, it is then mailed to Rome from the post office. Of course at each point there is a fee — a fee for processing the form, 30 euro to mail it, and 16 euro at the tobaccheria for a tax stamp to apply on the form. Even though they give you an appointment time, it is a first come basis. As soon as the door opens at 9:00, there is a mad dash to get your documents into the box by the door inside. It is somewhat of a shoving match. The very small waiting area is packed shoulder to shoulder with only a few seats around the perimeter of the room. We dread every other Fall when we have to repeat the renewal process.

Log in here to leave a comment.
Become a Member to leave a comment.
For members

AMERICANS IN ITALY

How to lower your social security bill as an American freelancer in Italy

A special bilateral agreement means that American freelancers can usually lower their tax bills by paying Social Security in the US instead of Italy. But exactly how can you take advantage of it?

How to lower your social security bill as an American freelancer in Italy

Freelancers in Italy who register for a VAT number (called a partita Iva) pay two main forms of tax: IRPEF, or income tax, and INPS, which are Italian social security contributions.

However, the US is one of just two countries worldwide that uses citizenship-based taxation instead of residence-based taxation. That means US citizens must file US tax returns even if they move abroad – and even if they don’t actually owe any tax.

Because of this citizenship-based taxation, Italy and the US have signed a bilateral social security agreement allowing Americans to pay US Social Security instead of INPS.

Why paying US Social Security can save you money

This bilateral social security agreement can be good news for US freelancers. Professional associations such as the Italian Bar Associations (Ordine degli avvocati) and the National Order of Architects (Ordine degli architetti) have separate pension funds that members can pay into, but foreign professionals often don’t qualify for membership.

Freelancers of any nationality who are not enrolled in a professional association must pay into a state benefits scheme called the gestione separata.

The INPS contribution for the gestione separata is currently 33 percent. That number doesn’t include income tax – just Social Security. By contrast, the US self-employment tax – which covers Social Security and Medicare taxes – is 15.3 percent.

For US freelancers who aren’t enrolled in an ordine, the US Social Security savings are substantial.

How to pay US Social Security instead of INPS

Get a coverage letter

Freelancers who want to pay US Social Security must first request a certificate of coverage from the US Social Security Administration to provide proof that they are exempt from paying Italian INPS. The letter can now be requested online and is valid for five years. 

READ ALSO: LISTED: The visa options Americans can apply for to live in Italy

Pay quarterly self-employment taxes to the IRS

Continue filing a US tax return. Self-employment taxes are calculated using two main forms: a Schedule C (1040) with income or losses, and a Schedule SE self-employment tax form. Freelancers must pay estimated quarterly taxes in January, April, June and September. The amount is based on the previous year’s earnings and can be paid online. Any differences between the estimated tax paid and the actual amount due are reconciled when you file your annual tax return.

Continue paying Italian income tax to the Italian Revenue Agency

Freelancers must continue filing an Italian tax return and paying income tax (IRPEF) in Italy. However, instead of paying Italian social security (INPS), they submit their Letter of Coverage provided by the US Social Security Administration.

FAQs

Are there restrictions on what income I can pay Social Security on?

Americans can pay Social Security on all freelance income, even if the client is located in Italy and pays the invoice in Italy.  

If I paid INPS in the past when I was eligible for Social Security, can I get a refund and pay Social Security instead?

Generally speaking, a taxpayer who makes INPS contributions that were not in fact due can request a reimbursement. However, it can take a long time. The money is refundable within 10 years. 

My Italian accountant said I have to pay INPS even as an American. What should I do?

Many Italian accountants are not aware of the US Social Security exception. 

“The social security agreement between Italy and the United States has existed since the 1970s and is still in force, but it’s not well known,” said Andrea dell’Aquila, a certified chartered accountant in Milan. “It’s quite specific and not well publicized.” 

Dell’Aquila suggests working with a commercialista who specializes in international clients and social security benefits. 

Information about the bilateral agreement is also available on the INPS website in addition to the Social Security Administration site.  

Can I still charge Italian clients 4 percent for social contributions if I am paying US Social Security instead of Italian contributions?

Under Italian law, freelancers can charge clients an extra 4 percent on each invoice to help cover the cost of social contributions, and the client is obligated to pay. However, the law specifically refers to INPS, Dell’Aquila said. 

“If you don’t pay INPS, you can still ask for a Social Security contribution, but you can’t ask by virtue of the law,” he said. 

READ ALSO: Americans in Italy: Is it worth paying for professional help with your taxes?

The client can decide whether to pay the contribution, which is treated like regular income under Italian tax rules. 

Key vocabulary

Partita Iva – Tax identification number

Libero professionista – Freelancer

IRPEF – Italy’s main income tax

INPS – Italy’s National Institute for Social Security 

Gestione separata – INPS’ state benefits scheme for freelancers

Commercialista – Tax accountant

Please note that The Local is unable to advise on individual cases. Find more information on the INPS website or seek independent advice from a qualified tax professional.

SHOW COMMENTS