Leo, let's discuss taxation, retirement, and social rights for long-term immigrants in Italy and Malta. Ready?
Absolutely, Mira. Let's start with Italy. What are the tax implications for someone retiring there?
If you reside in Italy for over 183 days annually, you're subject to Italian taxes on your worldwide income.
Worldwide income? So, even income from outside Italy is taxable?
Yes, but Italy has Double Taxation Agreements with many countries, preventing double taxation. You must declare all income.
Good to know. And what about retirement?
Italy's INPS public pension system provides pensions upon retirement, typically around 67. The amount depends on contributions.
Okay. Now, Malta. Is it truly tax-friendly?
Malta, an EU member, has a unique tax system attractive to long-term immigrants. It offers a "remittance basis" of taxation for non-domiciled residents.
So, I'm only taxed on income brought into Malta?
Essentially, yes. However, income earned in Malta is taxable, and minimum tax requirements exist for certain residency programs. You also must prove you're not domiciled in Malta.
I understand. What about Malta's retirement and social security?
Malta has a social security system providing pensions, healthcare, and benefits. Eligibility requires contributions over a certain period. Non-contributory benefits exist but are less generous.
And healthcare in both countries?
Italy has a national healthcare system; Malta's is smaller. Private healthcare is available in both.
Finally, unemployment benefits?
Both countries offer unemployment benefits to eligible residents who have contributed to the social security system.
So, Italy might be tax-heavy, while Malta offers tax advantages but potentially less cultural richness. Is that fair?
A fair summary. The best choice depends on individual circumstances and preferences.
Thank you, Mira. This clarifies things considerably.
You're welcome, Leo. Remember, thorough preparation is key when dealing with international taxation.