Italian Tax
#1
Just Joined
Thread Starter
Joined: Dec 2012
Location: UK
Posts: 1
Italian Tax
Has anyone any information about the GdFinanza looking at websites and targeting holiday houses to see if the owners are paying Italian tax? we have heard that by law an Italian accountant needs to transcribe our UK taxes into an Italian format? Is this correct? Any insight or assistance will be appreciated??
#2
Concierge
Joined: Apr 2007
Location: Verona/ Nr Turin
Posts: 4,670
Re: Italian Tax
Has anyone any information about the GdFinanza looking at websites and targeting holiday houses to see if the owners are paying Italian tax? we have heard that by law an Italian accountant needs to transcribe our UK taxes into an Italian format? Is this correct? Any insight or assistance will be appreciated??
Yes the GdF have been targeting holiday lets and B&B for non-payment of tax etc. It has been commented on here before, if you want to do a search. I don't know about transcribing taxes, but I should imagine that the GdF will at least, want them in Italian.
#3
BE Enthusiast
Joined: Apr 2010
Location: Roma
Posts: 338
Re: Italian Tax
I'm confused - why would you pay UK taxes on an Italian holiday let or B&B??? If it's located here, you pay Italian tax. Or maybe I'm missing something.
#4
BE Enthusiast
Joined: May 2010
Posts: 538
Re: Italian Tax
Love Trullis, transcribing UK taxes into an Italian format? If you are tax resident in Italy then I would say yes. If you are non resident, then I would argue no, but Italian rental income should almost certainly be reported in Italy.
I don't think that the guardia di finanza are randomly targeting holiday lettings as such but certainly if they have been alerted to a particular personal listing/website they will investigate. This is pretty much the same procedure as adopted by HMRC. Why should they be alerted, that is the 64 million dollar question? Jealous neighbours? Competitors? Local tradesmen pi**ed off for whatever reason? Promotion of websites on other forums. Whatever.....
As regards taxation on rental income, think of the two economists and their three different views.
If you are a non Italian resident, rent out your property through a non Italian website, take no bookings from Italians, have rental income paid into a non Italian bank account and never take this money into Italy then its possible that the guardia di finanza if asked to investigate may give you a clean bill of health. However, you still may be subject to Italian tax on an imputed rental value. So quite simple really.....
The whole crux, however, is not just about tax residency but also about disclosure. Whether its Italy, the UK, Switzerland etc rental income under law has to be disclosed somewhere and probablly in more than one country, hence the double taxation regime. Allowances can be deducted etc but non disclosure is almost certainly a criminal offence. There have been lots of scare stories recently and they probably are just scare stories but then again its incredibly easy on holiday letting and b&b sites to identify individual owners.
I don't think that the guardia di finanza are randomly targeting holiday lettings as such but certainly if they have been alerted to a particular personal listing/website they will investigate. This is pretty much the same procedure as adopted by HMRC. Why should they be alerted, that is the 64 million dollar question? Jealous neighbours? Competitors? Local tradesmen pi**ed off for whatever reason? Promotion of websites on other forums. Whatever.....
As regards taxation on rental income, think of the two economists and their three different views.
If you are a non Italian resident, rent out your property through a non Italian website, take no bookings from Italians, have rental income paid into a non Italian bank account and never take this money into Italy then its possible that the guardia di finanza if asked to investigate may give you a clean bill of health. However, you still may be subject to Italian tax on an imputed rental value. So quite simple really.....
The whole crux, however, is not just about tax residency but also about disclosure. Whether its Italy, the UK, Switzerland etc rental income under law has to be disclosed somewhere and probablly in more than one country, hence the double taxation regime. Allowances can be deducted etc but non disclosure is almost certainly a criminal offence. There have been lots of scare stories recently and they probably are just scare stories but then again its incredibly easy on holiday letting and b&b sites to identify individual owners.
Last edited by Capo Boi; Dec 6th 2012 at 8:52 pm.
#5
BE Enthusiast
Joined: May 2010
Posts: 538
Re: Italian Tax
Gelato, If you are UK resident, and despite having paid Italian taxes on an Italian rental, it's quite possible depending on your UK marginal tax rate that there are further UK taxes to pay. For example, if you are in the 40% tax band in the UK then almost certainly further UK tax will be payable. All depends on country of tax residency.