Friday, August 31, 2012

Retirement Planning - Italian Property Tax

imposta municipale unica

When I read in an update from Clare Galloway that her house was so inexpensive she paid no property tax, I immediately wondered how that could be. It turns out that for ordinary folks like us, the Italian system is amazingly simple.

In Italy, property tax (for real estate at least) is called IMU - imposta municipale unica (it used to be ICI). The problem with getting a handle on what one might pay lies in the fact that the base number is something called "rendita catastale" - a notional "rent" that might be obtained from the property. In many cases this number is very low and it can be reduced further if the house is in a mountainous area or a depopulated town.

Once you've got the rendita catastale for your property, calculating the tax is simple:

Thursday, August 30, 2012

Retirement Planning: Utilities Update

Guardia Sanframondi

As part of our exploration of Italy as a potential retirement location we've been corresponding with Clare Galloway, a Scottish artist featured in a recent House Hunters International episode. She's working with the mayor and town council of Guardia Sanframondi to put together a list of available houses in the old part of town and recently sent out some basic information about the cost of living there. But before I get to that...

What's the deal with these places?

In the case of Guardia Sanframondi (and other hill towns in Campania) it's earth quakes. Back in 1980 there was a big earthquake in the region: Terremoto dell'Irpinia. Almost 3000 people lost their lives and 300,000 were left homeless. Rebuilding did not go well. Due in large part to various forms of corruption less than a quarter of the funds spent actually went to reconstruction. As a result, many old hill towns became depopulated, their inhabitants rebuilding on the surrounding plains.  The same process is occuring today in L'Aquila Abruzzo where a 2009 earthquake devastated L'Aquila the city (and capitol of the region) and a number of other hill towns. Reconstruction there is ongoing, but corruption appears to be less of a problem today than in the 80's.

Some of these towns are actively seeking buyers for these very inexpensive houses (in Sicily the town of Salemi tried giving them away!) . Artists like Clare, folks (often from the UK) looking for holiday homes, and even people like us, trying to plan a reasonably comfortable retirement. Most of these places require some work (ok, a lot) to bring up to modern Italian standards. But there are enough that are liveable or nearly so to make it worthwhile to go take a look.

OK, but what about the utilities?

This is what Clare pays:

Real estate taxes: € 0,00 - her house is valued below the minimum taxable amount!
Water: € 15,00/month
Electricity: € 27,00/2 months
Bottled Gas: € 28,00/3 months
Phone/Internet: € 30,00/month
Mobile: € 8,00/month (!)
Trash Collection: € 150,00/year

If I've added everything up correctly that comes to € 1.060,00 a year - about € 88,33 or $110.85 per month. If you read my post on utilities costs you'll be a bit amazed (as I am) at how far off I was. Without knowing anything about Clare's lifestyle it's hard to say where the differences come but it's pretty clear that the Italian lifestyle involves a great deal less electricity.

We're starting to plan a trip in late Januray or early February 2013 (that's when flights are cheapest) so it won't be long until we find out a lot more.

Tuesday, August 28, 2012

Potato Gnocchi with Porcini Mushroom and Sausage

Potato Gnocchi with Porcini Mushroom and Sausage


Recipe by Bill C
Ingredients
  • 1 lb Russet Potatoes
  • Flour
  • 1 Large Egg
  • 6 oz. Sweet Italian Sausage
  • 1 oz. Dried Porcini Mushrooms
  • 1 Tbs. Finely chopped shallot
  • 1/4 cup Dry White Wine
  • 1/2 cup Cream
  • Salt, Pepper, Peperoncini, Parsley
  • Olive Oil

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