josephine1

Hi all,
I am moving to Sicily and buying a house but want to get residency 1st so the tax is cheaper. Does anyone know how I do this before i pay for the contract on my house. If i apply for residency at the same time as i do the contract does this escape the foreigner tax?
Can anyone advise please.
Thanks
Josephine

Lorna at Vicenza

Hello and welcome.

Please read Modicasa's post (post 7) in this other very new thread about residency.

http://britishexpats.com/forum/showthread.php?t=790281

modicasa

Hi, whoever gave you this advice is a bit out of date.
If you want to be a resident just to save a bit of money you need to remember the following:
1. if you are resident you are saying you live here, so anything you own outside Italy is subject to Italian tax
2. If you want to be resident but dont plan to live here it will bring big problems - it is illegal, you could be charged with making false declarations in public acts, and the UK might decide that you are not tax resident there and so all your UK income suddenly becomes taxable at italy rates (bad).
3. You will save a few hundred quid - especially in Sicily because you are saving 7% of the rateable value of the house. It isnt worth the hassle to become a resident for a few hundred quid.

Where are you buying and what? there may be ways to reduce your tax bill perfectly legally.

josephine1

Hi I am buying in St Agata di Militello in Sicily.

modicasa

Well, your rateable value in Sicily will be low, so there will not be a great difference between your 7% and 3/ tax to pay - the other taxes will be about the same. Who said to do this? If you are buying land then you will be paying 18% on the purchase price and that you cant do anything about.

37100

Sicily has a 'foreigner tax'? You do not need residency at the time of buying, but you must obtain it within 18mnths. As Modicasa said, do your sums. For the sake of even a few thousand Euros, it is not worth the hassle/cost of Italian taxes.

josephine1

Hi,
What do these represent?
your 7% and 3/ tax to pay
Thanks
Josephine

modicasa

If you buy as prima casa - ie you will take residency you will pay 3% of the rateable value plus 2x168euros plus registration and transcription plus the notary. If you buy as 2nd house you will pay 7% of the rateable value, plus 2% + 1% of the rateable value as stamp duty and registration tax.

josephine1

Thank you
Josephine