Italian Adventures – We Bought a House in Italy!

I am heading back to Italy in less than a week, Digital Nomad Visa securely attached within my passport. YAY me! When I arrive in Italy, I will have 8 business days to file all of the same paperwork at the Post Office to apply for my Permesso di Soggiorno (PdS) (permission to stay). This enables me to become a short-term resident. Residency comes with many perks and many challenges, more on that in a bit. After 5 consecutive years of receiving my PdS I then become a long-term resident and only have to renew my PdS every 10 years with minimal paperwork. Or at least those are the rules for now.

Applying for a visa is no small task. It requires a LOT of documentation and patience. Patience because securing an appointment at your local Italian Consulate is no easy thing. In fact, when you finally find an opening, you feel like you need to go out and celebrate.

Why is getting an appointment so hard? Well, because Italy only releases a few appointments at a time. You learn quickly (some people not so quickly) that it’s best to log into your local Consulate site a few minutes before midnight Rome time. For me, that’s 3pm PT. Midnight is when any new appointments will be released, if any at all. It’s well advised to set up your account in advance, log in a few minutes early and refresh your screen at the stroke of midnight. You might feel like Cinderella, or … maybe not, depending on what happens next.

I learned over time that it is futile to attempt finding an appointment when it’s an Italian holiday. Simply put, the website never functions during this time. I am serious! Over the Christmas holiday, the website would always just clock or reboot or cycle out, leaving you frustrated. But low and behold, the next business day following the Epiphania, the site is fully functional again. These are things you simply learn to accept.

You have to log in and make your attempt EVERY DAY! I set an alarm on my phone and my computer so I wouldn’t miss the golden window. After a few weeks, sans Italian holidays, there it was…the elusive available appointment! I secured my time and date, screenshotted the confirmation page, and printed out the resulting confirmation email and flagged it in my email. Here’s the catch. Even though you have secured an appointment. it is not actually confirmed until about 10 days before the actual appointment date. Yep! You are still in a holding pattern. You have been trying for weeks or months, looking for an appointment a few months from the time you are searching, but also balancing against the date of your planned trip or move to Italy. But alas, at least you can stop logging in everyday and feeling let down when it resulted in niente…nothing.

The other important thing to put out there is that you should not even attempt to secure an appointment until you have gathered the majority of the required documentation. You just never know how long it will take to get certified copies of your college transcripts, marriage and divorce certificates, etc. and THEN have them translated and appostilled. It literally took me longer to get my college diploma and transcripts submitted and certified via the CIMEA then it did to get the appointment at the San Francisco consulate. I kid you not!

Many have asked…what is a Digital Nomad Visa (DNV)? Student visas are popular, but most Americans that apply for visas are retired and looking to move to Italy permanently. For them, they seek the Elective Residency Visa. It requires several different things because it requires proof of stable passive income, at or above the required per person amount, which can and does change periodically. Also important to note is that despite being married, each individual must apply independently and can have different results. Comingled assets and passive income makes it even trickier. I know a couple who applied at the same time, with appointments 15 minutes apart, and he received his visa after 73 days and the wife is still waiting. Technically the Consulate has 90 days to respond, but there is also language in the documentation that states in certain circumstances they can take up to 120 days. So it is well advised NOT to book non-refundable plan tickets, just in case.

Most of the EU has supported DNVs for years now because they feed the local economy while not taking jobs away from native residents. Italy was the last of the EU to do so, finally recognizing it in April 2024. But in true Italian bureaucratic fashion, it was a total shit-show. Excuse my French but it’s totally true. I was following along, reading one horror story after another. None of the Consultates were prepared, and when they thought they were, each one was in a different state of readiness. Now, to be fair, every Consulate is a different experience, and even each agent at the same Consulate is a different experience. Houston is notoriously the most challenging Consulate currently, with Los Angeles not far behind. I am fortunate in that San Francisco has gotten significantly better and my experience was excellent.

In order to qualify for the DNV, you must either be a freelancer or employed as a 100% remote worker, and prove that you are a highly skilled professional that is backed up with the appropriate credentials and proof of steady income.

Being the organized individual that I am, I over-compensated and over-documented to ensure I would be successful. I have read so many stories where the Consulate agent would ask for a piece of documentation that is not listed on their website as required documentation, to then only be sent away and start the process over. Nope! That won’t be me, at least not to the extent I can help it.

So while an FBI background check is no longer required in San Francisco, it’s cheap and easy to secure so why not cover my bases. Not only did I secure my college diploma & transcripts and have them certified (as required) via the Cimea, I also had them transcribed and apostilled. I had two former bosses write letters of recommendations, which I then translated into Italian and included in my ‘file’. I wrote a detailed cover letter explaining how my college degree and work experience makes me a highly skilled worker with unique skills not easy to find in today’s market. Not only did I include 3 months of US bank statements to demonstrate proof of steady / stable income, but I also included statements from my international bank account and my Italian bank account to demonstrate my commitment to working and living in Italy. Some might say it was overkill, but to me it was additional proof and security.

I have read many posts where people have showed up to their appointment with comprehensive binders, with file tabs, dividers, etc. only to be scowled at and asked to present specific documentation at the agents discretion. Again being the crazy organized person that I am, I had an expanding file organizer that enabled me to organize all of the documentation into sections…proof of work history, bank statements, tax returns, education, etc. But be aware, you need 4 of these. YES, 4! One set of originals for you to keep but also bring with you to your Consultate appointment should they ask to see the originals. A copy for the Consultate, a copy for the PdS, and a spare copy just in case. Yep, I am pretty sure I killed a tree (thus the picture at the beginning…I brought the Consulate copy, an extra copy and my originals. Plus a book to read and my wallet)

My experience with Italian Consulate was, to say the least, nerve racking but easy and painless. I was one of the lucky ones. The picture above is me right before I rang the doorbell to go inside.

I flew first thing in the morning from Seattle to San Francisco, ensuring I had plenty of time in case there were flight delays, etc. My appointment wasn’t until 12:15pm but I wasn’t taking any chances. From the airport I took an Uber to the Consulate so I would know exactly where it was. From there I located a coffee shop a few blocks away where I could hang out and try to relax before my appointment. Why was I so nervous? I am not sure how to explain it but I was, maybe because I didn’t know what was about to happen. You can plan and prepare, but you just never know until you are in the moment.

It was 30 min before my scheduled time so off I went, walking back my 2 1/2 blocks to the side door of the Italian Consulate. Yes, you read that correctly. You don’t go in the front, you enter on the side through a small white door. It was a Tuesday, and just so happened that the previous day was an Italian holiday so there were still road closure signs and confetti all around. I organized myself, straightened my hair and proceeded to ring the doorbell. … nothing. Do I ring it again? NO! There was a crackling noise and a stern Italian woman’s voice asking something…who I am? What I wanted? I am not totally sure but I told her my name and that I had a 12:15 appointment. not sure I would be let in since I was about 15 min early. But the door buzzed and I pushed the door open and stepped inside.

The room was small, there were 2 agents, 1 man & 1 woman, working their stations behind plexiglass. There were folding chairs positioned along the wall across from the windows so I found a seat. There was a woman and her child in the two seats in the corner, a young girl who looked college age sitting 2 seats to my left and then me. There were several signs on the walls that made it clear that cell phones were strictly prohibited so I quitely turned mine off and stuffed it into my bag. I sat in silence, watching the various transactions happening, trying to assess how my appointment would go. The woman and her son got up and went to the man’s window. He was cordial and tried speaking to the boy in Italian but the poor thing froze. The mom encouraged him to speak as they had practiced, to no avail. The agent was patient and kind, taking all of the documentation for the boy’s Italian passport, walking him through the fingerprint process, and asking them to return in 3 weeks.

Then it was the girl’s turn, the college student, pursuing her student visa as I expected. She was working with the female agent who was professional but kind. There was some sort of problem with the girl’s documentation. Something about a date issue with her apartment or dorm and her date of departure. The agent explained to have the letter reissued to adjust the dates, as one couldn’t come before the other. She let the girl take pictures of the documents so she could be confident in what she needed to do. She gave the girl an email address to submit the corrected documents and encouraged her through the process. It was nice to see that she didn’t just get turned away, but was guided on how to correct the error and submit the new documentation. It was comforting to see because the girl was clearly nervous, standing on her toes, crossing her feet, and shifting side to side throughout the process…not unlike how I was feeling and she was so much younger.

While the girl was with the agent, the doorbell rang, the woman answered and buzzed a man inside. He was there to pick up his passport but never sat down. Instead, he pulled out his cell phone and started scrolling. DUDE! Read the signs. Then the doorbell rang again and instead of waiting for an agent to answer, he turned to open the door. The woman agent yelled out NO!!!!!!! and proceeded to scold him on the security needs of the Consulate, etc. He seemed totally unphased, went back to his phone scrolling and moved a little away from the door. Part of me secretly hoped he would have issues with an agent in collecting his passport, if only because he see,ed very disrespectful.

Finally it was my turn and I stepped up to the woman’s window. She confirmed who I was and why I was there and asked for me to pass my folder over to her through the small window in the glass. I was very surprised based everything I had read leading up to this appointment but I did as instructed, or at least tried. My packet was too thick but she pulled and I pushed and finally it gave way and made its way over to her. She pulled out the documentation, section by section, looking over each section carefully, making some notes then setting it to the side where she proceeded to make a crisscross pile of documentation. She was preparing to take my fingerprints when I asked about the application form. I was told NOT to sign it in advance, as it had to be signed in front of the agent. She pulled out the application, made a few more notes, filled in some fields then passed it to me for signature. She thanked me for drawing her attention to this. I simply said Prego.

I had seen several people do the fingerprint process, so I was prepared on what to do but waited for her instructions so as to demonstrate my compliance. Once it was done, she asked me if I had a copy of my prepaid postage envelope’s tracking number, which I did, and then she said I would hear back within 30 days. WooHoo!

I stepped outside into the California sunshine and called for an Uber back to the airport. It was done! But it felt very strange leaving without my passport. Now the waiting begins. I liken it to expectant parents, the wife going into labor, anxiously waiting for the baby to arrive and learn of its sex. I wouldn’t know if I was granted my visa until the envelop arrived at my house and I opened my passport to see if the visa was affixed inside. Periodically I would check the post office website to see if my tracking number was in route. On day 21, a Friday, at the end of my workday, I logged into the USPS website and WAIT! My envelope was in route. WooHoo! I would know by Monday.

On Sept. 1st I will head to Orvieto in the morning, meet up with my Immigration Attorney and walk to La Posta to file all of my paperwork, collect my ‘receipt’ and secure an appointment with the Questura for fingerprinting. I will be meeting with a Commercialista to discuss the tax implications for residency. This is where is gets complicated.

Many retired Americans choose to buy and live in the southern part of Italy where there are several 7% towns. This is a tax regime where if you declare residency in a small town, you fall into a tax scheme where you are charged a 7% flat tax for 10 years and no Wealth tax. The requirements used to be 10k residents or less, then a few years ago it was bumped to 20k residents or less, and this past spring it ws bumped to 30k residents or less.

I myself own a home in Umbria where there are no 7% towns, except maybe those bordering le Marche region. So, I will be subject to the standard taxation rules, which can be upwards of 37% + a Wealth Tax, which means they apply a tax on ALL of my assets…think property owned in the US, retirement accounts, investment accounts, etc. It can add up to a LOT of money. You pay your normal US taxes first which gets applied against your Italian taxes so there is no double taxation. It’s a lot to consider.

Because I am still working and a high-wage earner, I qualify for the Impatriati tax scheme, which reduces my tax burden for 5 years. So basically let’s say I make $100k per year, under this tax scheme, they would only consider 50% of my earned wages for taxation purposes, greatly offsetting the amount I would owe, but the Wealth tax still applies. If I declare residency and spend more than 183 days per year in Italy, I am considered a tax resident, so I need to speak with an expert and consider my options.

One benefit of gaining my PdS and residency is that I can qualify for the Italian health care system and pay something like $2k euro annually. I can also buy a car. Yep! As an American, you can buy a house, but you cannot buy a car in Italy unless you are a citizen or resident. Once I declare residency, I have up to 1 year to convert my US driver’s license to an Italian one, which is very challenging. Other EU countries are able to swap out their EU license (say French) for an Italian one, no problem. But because the US issues licenses at the state level and not at the Federal level, this reciprocity does not exist. You have to complete 8 hours of instructor guided driving, sit for the theory exam, which is notoriously difficult, then take the Italian driver’s exam. From there you have several restrictions for the 1st 3 years of driving since you are classified as Provisional, such as being limited to the engine size & horsepower of the car you can drive.

The theory exam is intentionally difficult and can only be taken in Italian or German. There are 7,000 possible questions, of which the test will contain 30 and you have 20 minutes to complete it. The questions are in old school Italian, adding to the complexity, and formatted in a way to intentionally trick you. For the driving test, the instructor can ask you technical questions about the vehicle itself, again only in Italian, about the engine, battery, etc. So, you have to learn a whole new form of Italian, solely focused on passing this test. Once it’s over you can forget everything you learned. Clearly every Italian driver on the road has!

I am going to look into signing up for the driving school in Chiusi Scalo next spring, a town about 15 min from my house. Not only will that enable me to complete the required hours of guided driving but also help prepare me for the theory exam. They will enable me to get the required medical and eye exam once I pass the written and driving portions of the test. I am fully prepared to be a 62 year old woman with decades of driving experience sitting in a classroom filled with 15 year olds hoping to get a license to drive their Poggio Ape’s. In Italy kids aren’t legally allowed to drive a car until the age of 18.