Roger11

Can anybody help me?
If I spend more than six months per year in Italy, do I have do pay Italian Tax?
I will not be earning any money there and living in rented accommodation. My earnings come from rental income on properties in England.

Margaret M

We live here permanently and also rent out properties in England, which remain taxable in the UK, although strictly speaking you are supposed to declare them here and pay any difference. We do have to pay tax on our UK Pensions here, but not in the UK. Hope this helps.

Mr Posh

Hello Roger and welcome to the Forum....

This is a hard question so many different answers.

Take me, I have a business in the UK and all our work is done in the UK. I go home go to the bank draw what i need and bring it over as and when (can not say when otherwise duffer my get me )

My accountant in the UK has told me that I DO NOT have to pay tax in Italy as all my earings are in the UK and you can not be taxed in Two different countries for the same thing.

If I start working here and earning Then I would have to pay. I think that Like the UK you can earn so much a year in Italy before you pay tax, thati amount i am not 100% sure what it is.

Roger11

Thanks for the reply.
How long do you spend in Italy per year and do you have a codice fiscale?
Do the italian authorities know you are there?

Mr Posh

I have Codice Fiscale, Carta Sanita and yes they have to know you are here..But it's Fine...Do not know about you, But i can prove that all my income comes from the UK

clint

If one is resident in Italy one has to declare any personal income generated world wide (same apply to the UK). If one owns a business in another country then that business will pay tax due in that country however if you get a salary or any other form of income from that business you are liable for tax on that in your country of residence. The only personal income that is not taxable in Italy under double taxation treaty is private pension received from civil service dept/councils or other government agencies.

I've just received a letter from ufficio entrate stating:

"It is important that you are aware of regulations of our fiscal system, failure to comply could end up with heavy sanctions. In particular this apply to annual tax return:

- foreign income subject to Italian personal taxation
-investment and financial activity likely to produce foreign income liable for tax in Italy of a value over 10K Euros held at 31st December of each year and of transfers to and from abroad over than 10K Euros relating to the above investments. This applies even if at the end of the tax period such investments no longer exists or are less than 10K Euros.

Should the above be omitted from tax return from foreign income a penalty applies between 133% and or 266% of the highest amount due, should a tax return not be admitted in the first place the penalty increases between 160% and 320% of the highest amount due.

In addition in the case of omission of foreign investments a fine is applicable with a rate of 10% to 50% of the total value of that investment by seizing goods up to fine due"

There is more but I have no time to translate it now.

There is a section on tax rules from the Agenzia delle entrate (Italian revenue) explaining what's liable for income over here that I can't find a link to now.

Double taxation is a specialist field and should seek advice with an accountant familiar with this type of income or contact the UK Inland Revenue centre for non residents in Nottingham

clint

Here is a link to Agenzia delle entrate with all kind of information on Italian taxation in English.

http://www1.agenziaentrate.it/ingles...income_tax.htm

Mr Posh

So Clint everything that my accountant has told me Is wrong..

What about duel residancy?

I have Nothing here not even a credit card. ALL my earnings and bank accounts are in the UK. I have one bank account here just to put money in when i come over.

What are they going to TAX me on..How can they tax me twice?

If they want to tax me. well then they can go to my accountant and he will have to explain.

This is Interesting http://www.hmrc.gov.uk/manuals/dtmanual/DT10150+.htm

clint

Firstly I am not making any judgements on what your account says, what I posted is a quick translation of the letter I received from the Italian tax authorities.

With regard to dual residency this cannot happen. There are 365 days in each year (leap years apart) so it is usually imposible to spend exactly the same amount of time in each country.

The following is from HRMC site http://www.hmrc.gov.uk/CNR/faqs_general.htm#3nr

"Q3. In what circumstances would I become non-resident?
A3. Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if

•your absence and employment from the UK covers a complete tax year (i.e. 6 April to 5 April), and
•you spend less than 183 days in the UK during the tax year, and
•your visits to the UK do not average 91 days or more a tax year over a maximum of 4 years.
For visits to the UK, days of arrival and departure are not normally counted as days spent in the UK.

Q4. Can I choose to pay tax in the UK rather than in my country of residence?
A4. No. If a double taxation treaty is involved, the country in which you pay tax will be determined as a matter of fact and not choice. More information on Double Taxation Treaties.

Q5. Will I have to pay tax in the country to which I go to live or work?
A5 The country to which you go to live or work may tax you on your world-wide income. This will depend on its own laws. You may need to ask the tax authority there for advice. More information on Double Taxation Treaties.

Q6: Why am I paying tax in the UK on my income when I am no longer resident there?
A6. Income arising in the United Kingdom will remain liable to United Kingdom income tax. However, depending on your nationality and where you live you may be eligible to:-

1.make a claim for repayment of United Kingdom Income Tax. More information on Double Taxation Treaties
2.make an application for exemption from United Kingdom Income Tax. More information on Double Taxation Treaties
3.use any personal allowances to which you may be entitled to offset some or all of your tax liability. More information on Personal Allowances"

There are a lot more questions and anwers on that link

niknewton

I own a property in Italy, have cod fisc, bank accounts, been paying tax each year for past 8 years. Have my CUD etc.

Now I am outside Italy and may stay for a while and earn some tax free cash - how does one become "non-resident" for tax purposes ? And be sure that a return to Italy does not present surprises ....

Can you still have utility bills in your name as a non-resident ? I am thinking of letting my house - should I stay "resident" and make a 430 each year declaring the rent / offset against allowance and repairs.

I cannot find anything on the ADE site . Thanks in advance

LivingHere

We pay all out taxes in the UK but spend most of our time in Italy. I think the best thing would be to talk to an accountant because everyone has a different situation.

Lorna at Vicenza

You can have "non residente" bills. The electric company charge you more though.

Paul.Redmond

Hi Roger, May I suggest you go to SNIP There is a section on the site for Expatriates resident in Italy as well as a wide range of Italian services. We can hook you up with a tax advisor

Best of luck.
Paul

Lorna at Vicenza

Err Paul, are you just suggesting this as a good website for Brits in Italy or do you work for these people?

You do know that advertising on the site isn't allowed don't you?

Mr Posh

you know the problem with us brits we are JUST to honest for our own good....Half of Italy does not pay tax and we have a thread worrying about it.....I say, As in Rome...