Italy Country Monograph

Home , Antonio Di Pietro, Pier Luigi Bersani, Raffaele Lombardo

CandiceBy: Live and Invest Overseas Editors

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Publisher: Kathleen Peddicord

Copyright © 2017 Live and Invest Overseas. All rights reserved. No part of this report may be reproduced by any means without the express written consent of the publisher. The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed.

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Table of Contents

GOVERNMENT ...... 3

ECONOMY AND RESOURCES ...... 3

CLIMATE ...... 4

POPULATION AND SOCIETY ...... 5

INFRASTRUCTURE ...... 5

PRACTICAL INFORMATION ...... 5

SPECIAL BENEFITS FOR RETIREES ...... 6

COST OF LIVING ...... 6

TAXES ...... 8 TERRITORIALITY AND RESIDENCE ...... 8 GROSS INCOME ...... 8 DEDUCTIONS AND ALLOWANCES ...... 8 TAX CREDITS ...... 8 OTHER TAXES ...... 9

FURTHER READING ...... 9

National name Repubblica Italiana/Italian Republic

Area: 301,300 square kilometers/116,331 square miles

Capital: Rome

Major towns/cities: Milan, Naples, Turin, Palermo, Genoa, Bologna, Florence

Major ports: Naples, Genoa, Palermo, Bari, Catania, Trieste

Physical features: mountainous (Maritime Alps, Dolomites, Apennines) with narrow coastal lowlands; continental Europe's only active volcanoes: Vesuvius, Etna, Stromboli; rivers Po, Adige, Arno, Tiber, Rubicon; islands of Sicily, Sardinia, Elba, Capri, Ischia, Lipari, Pantelleria; lakes Como, Maggiore, Garda

Government

Head of state: Giorgio Napolitano since 2006

Head of government: Silvio Berlusconi since 2008

Political system: liberal democracy

Political executive: parliamentary

Administrative divisions: 103 provinces within 20 regions (of which five have a greater degree of autonomy)

Political parties: Center-Right coalition: Lega Nord or LN [Umberto Bossi]; Movement for Autonomy or MpA [Raffaele Lombardo]; People of Freedom or PdL [Silvio Berlusconi] Center-Left coalition: Democratic Party or PD [Pier Luigi Bersani]; Italy of Values or IdV [Antonio Di Pietro] Other non-allied parties: Future and Liberty Party or FLI [Gianfranco Fini]; Union of the Center or UdC [Pier Ferdinando Casini]

Armed forces: 216,800 (2002)

Conscription: up to ten months

Death penalty: abolished in 1994

Defense expenditure (% GDP): 1.8 (2005)

Education expenditure (% GDP): 4.3 (2007)

Economy and resources

Currency: euro

GDP (US$): 1.782 trillion (2010)

Real GDP growth: 1.1% (2010) GNI per capita (PPP) (US$): 30,700 (2010) Italy Country Monograph

Consumer price inflation: 1.4% (2010)

Unemployment: 8.4% (2010)

Major trading partners: EU (principally Germany, France, Spain, and UK), U.S.

Resources: lignite, lead, zinc, mercury, potash, sulphur, fluorspar, bauxite, marble, petroleum, natural gas, fish

Industries: machinery and machine tools, textiles, leather, footwear, food and beverages, steel, motor vehicles, chemical products, wine, tourism

Exports: machinery and transport equipment, textiles, clothing and leather goods, wine (leading producer and exporter), metals and metal products, chemicals, wood, paper and rubber goods. Principal market: Germany 12.6% (2009)

Imports: mineral fuels and lubricants, machinery and transport equipment, chemical products, foodstuffs, metal products. Principal source: Germany 16.6% (2009)

Arable land: 26.41%

Agricultural products: sugar beet, grapes, wheat, maize, tomatoes, olives, citrus fruits, vegetables; fishing

Climate

Italy enjoys four distinct seasons. Summers can be hot (temperatures can reach as high as 90 degrees Fahrenheit), though winters are typically mild (rarely do temperatures reach freezing; the average winter temperature is 40 to 50 degrees). Falls can be warmer than you might expect (temperatures still can climb into the 80s); spring is pleasant and comfortable (temperatures average 50 to 70 degrees).

Rome climatological information Italy Country Monograph

Population and society

Population: 61,016,804 (2011)

Population growth rate: 0.42% (2011)

Urban population (% of total): 68 (2010)

Age distribution (% of total population): 0–14 13.8%, 15–64 65.9%, 64+ 20.3% (2011)

Ethnic groups: mainly Italian; some minorities of German origin

Languages: Italian (official), German and Ladin (in the north), French (in the Valle d'Aosta region), Greek and Albanian (in the south)

Religion: Roman Catholic 90%

Education (compulsory years): 8

Literacy rate: 98.8% (men); 98% (women) Labor force: 4.2% agriculture, 30.7% industry, 65.1% services

Life expectancy: 79 (men); 84 (women) (2011)

Child mortality rate (under 1, per 1,000 live births): 3.3 (2011)

Internet users: 29.235 million (2009)

Infrastructure Airports: 132

Railways total length: 19,729 kilometers

Roads total road network: 487,700, of which 100% paved

There are two international airports in Rome, Leonardo da Vinci and Giovan Battista Pastine Airport, but the second one offers flights only elsewhere within Europe (no domestic service). The national carrier is Alitalia.Trenitalia, Italy’s national train service, is the top option for service within the country. Some mainland routes are easier reached by bus than by train. The path from Florence to Siena, for example, is more efficiently served by bus. Smaller towns that do not have train stations do have bus stops, so bus travel is also a good option for getting more off the beaten path, though bus schedules are less dependable than train schedules; when traveling by bus in this country, be prepared to be flexible. Taxis are available in all cities and towns, but can be expensive.

Practical information

Visa requirements: visa not required

Embassy in the U.S.: 1601 Fuller Street NW, Washington DC 20009; tel. (202) 328-5500

American embassy: Via Veneto 119/A, 00187 Rome; tel: (39) 646-741

Chamber of commerce: Unione Italiana delle Camere di Commercio, Industria, Artigianato e Italy Country Monograph

Agricoltura, Piazza Sallustio 21, 00187 Rome; tel. (39) 647-041

Office hours 8 a.m.-1 p.m. and 3 p.m.-7 p.m. Mon–Fri

Banking hours: generally 8:30 a.m.–1:30 p.m. and 3:30 p.m.–4:30 p.m. Mon–Fri

Time difference: GMT +1

Chief tourist attractions: Alpine and Mediterranean scenery; ancient Greek and Roman archaeological remains; medieval, Renaissance, and Baroque churches (including St. Peter's, Rome); Renaissance towns and palaces; museums; art galleries; opera houses

Major holidays: 1, 6 January, 25 April, 1 May, 14 August (mid-August holiday, 2 days), 1 November, 8, 25–26 December; variable: Easter Monday

Special benefits for retirees

Seniors in Italy, foreign or not, enjoy discounts at restaurants and many places, including supermarkets, offer express lines for seniors.

Cost of living

As always, expenses depend on your lifestyle. Is your idea of dining out a village pizzeria with a wood-fired oven or a fancy fish restaurant in Pescara? Are you happy with local wine by the liter, or can’t you imagine life without imported beer? Do you plan to have weekends away in Rome? But to give you an idea, the Abruzzo Monthly Budget includes some basic costs. Abruzzo is one of our top recommendations in this country.

Abruzzo Monthly Budget

Apartment Rental

Rent US$650

HOA fees US$0 Property taxes US$0 Transportation (Occasional bus and taxi fares) US$25 Gas (Used for cooking) US$33 Electricity (Average value, assuming seasonal variations) US$120 Telephone (Control line) US$21 Internet US$34 Cable TV US$37 Household help, fulltime US$0 Food (Groceries) US$400 Entertainment (Eating out, movies, bars, etc.) US$250 Homeowner's insurance US$11 TOTAL US$1,581 Italy Country Monograph

Apartment Ownership

US$0 Rent HOA fees US$0

Property taxes US$19

Transportation (Occasional bus and taxi fares) US$25

Gas (Used for cooking) US$33

Electricity (Average value, assuming seasonal variations) US$120

Telephone (Control line) US$21

Internet US$34

Cable TV US$37

Household help, fulltime US$0

Food (Groceries) US$400

Entertainment (Eating out, movies, bars, etc.) US$250

Homeowner's insurance US$29

TOTAL US$968

Cost of housing

Abruzzo is one of the most enchanting yet affordable regions of Italy. It rivals the best of Tuscany without the price tags. You could purchase a small one-bedroom apartment for as little as US$75,000 or a two-bedroom country house for as little as US$150,000. You could rent a three-bedroom apartment for as little as US$650 a month.

Health care

The national health insurance (SSN) provides cheap (often free) top-notch health care, particularly if you move to one of the “rich” regions in the northeast Italy, and nobody can be denied enrollment for any reason (such as pre-existing conditions).

All Italian cities and large towns have at least one medical clinic or hospital.

There is a noticeable discrepancy between Italy’s private and public hospitals. There is also a discrepancy in care available in different regions of the country. As I mentioned, Northern Italy Italy Country Monograph is a more affluent area and tends to have better public medical facilities, while the south, which is poorer, has lower quality public medical facilities.

Basic accommodation in private hospitals consists of wards with three to six beds. For an extra 75 Euros per day, you can stay in a private room with en-suite bathroom.

In public hospitals, all in-patient treatment under the National Health Service is free. You pay for out-patient expenses, such as consultations, tests, and day surgeries. The maximum cost to you for each out-patient treatment is 36 Euros.

If you are not covered by the National Health Service, you must pay before receiving treatment, even if you have private medical insurance. Some foreign insurance companies have agreements in place to bill some hospitals directly.

In contrast, private hospitals are more like five-star hotels and have a price tag to go along with the luxury. In Italy, a stay in a private hospital can cost from 500 to 3,000 Euros per day. On top of that, treatment costs can be up to 5,000 Euros per day, for major surgery.

Private medical insurance policies vary considerably in price but generally cost 1,300 to 2,000 Euros per year for a family of four. Premiums are higher for the elderly.

Taxes

Territoriality and residence

Residents are taxed on their worldwide income, while nonresidents are taxed only on Italian- source income. For income tax purposes, an individual is deemed to be a resident if he/she is registered at the census office or is domiciled in Italy for more than 183 days in a year.

Gross income

Employee gross income: The personal income tax is progressive, rising to a top rate of 43% for income exceeding EUR75,000. The other rates are: 23% on income up to EUR15,000; 27% on EUR15,001-28,000; 38% on EUR28,001-55,000; and 41% on EUR55,001-75,000. Additional regional tax may range from 0.9% to 1.4%, depending on the region in which the individual lives, and an additional municipal tax may apply at 0% to 0.8%, depending on the taxpayer’s municipality.

Capital gains and investment income: Capital gains are generally taxed as ordinary income, although certain “non-qualified investments” (e.g. an investment of no more than 25% in an unlisted company) are subject to a 12.5% rate.

Deductions and allowances

Deductions for family circumstances are available in calculating taxable income.

Tax credits

A foreign tax credit is allowed against Italian net tax for final tax paid on foreign earnings in the year in which the final foreign tax was paid. The amount of the credit may not exceed the amount of Italian tax due. Italy Country Monograph

Other taxes

Social security taxes: Individuals working in Italy are generally subject to social security contributions. Rates vary according to the sector of activity and the employee’s job title. Social security in respect of the state pension fund borne by the employee is generally equal to 9.19%, plus 1% over EUR42,364 up to a cap of EUR92,147 for employees who started contributing to an obligatory social security scheme after January 1, 1996. For those who started contributing before that date, contributions are calculated on the total amount of employment income received.

Real property tax: Property owners, whether or not resident, are liable for property tax (ICI) on buildings and land owned for their own use or as investments. Each local authority sets their rates, which apply at 0.04%-0.07% of the taxable value of the property.

Net wealth tax: No

Tax authorities: Ministry of Finance, Tax Income Agency