Tag: taxes
-
US Expat Finance 101
Living abroad as a US citizen involves complex financial considerations. Global taxation requires citizens to report and pay taxes on worldwide income. The Foreign Account Tax Compliance Act (FATCA) enforces reporting of foreign financial accounts. To navigate these challenges, it’s advised to maintain a US bank account, manage investments through a US broker, and stay…
-
How US investments are taxed in Italy
US citizens residing abroad should be aware of the taxation of earnings from a US broker in Italy. Capital gains are taxed only in Italy under the tax treaty, with different rates for stocks, government bonds, and US ETFs. Dividend income is taxed in both countries, entailing complexities and potential double taxation. Understanding these factors…
-
Italian wealth tax: IVAFE
IVAFE, or “Imposta sul Valore delle Attività Finanziarie detenute all’Estero,” is a tax on financial assets held abroad by Italian residents, including ETFs. It is paid yearly at a 0.2% rate for assets held in non-blacklisted countries (including the US). This tax can be likened to an ETF management fee.
Spaghetti Finance 