Is it financially beneficial to retire in Italy?

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Dan_M Member

Member since 24 July 2023

Dan_MMember09 September 2023 19:21:41

Many articles talk of 1 Euro homes and 7% tax rates etc.聽 It sounds like it could be lower cost living, but what if you don't want a home that requires substantial renovation?聽 What if you want to be in a larger town than what the 7% tax zones are [i.e. they have a limit of 20k persons]?聽 And while taxes on a home might be low, income tax rates can be very large ... 27%, 38% and more.

Auto insurance is supposedly very expensive, and while there is universal health insurance, many pay for private or supplemental insurance.聽 Then there is the issue of USD vs Euro exchange rate.聽 For every 100k of savings you have, this might only be worth 95k in Europe.

Not that relocation would be all about $s, but ... is it actually beneficial?

Dan_M Member

Member since 24 July 2023

Dan_MMember13 September 2023 02:15:58

Consider an example ..

a lot of people shoot for retirement savings of about 1 million dollars.聽 If you earn 8% on that through investments, that is 80k USD.聽 In Euros, this might be 76k which would leave you in a 43% tax bracket.聽 Of the 80k earned, you would only retain 45.6k.聽

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