D4n

Please help me out with this one, i'm very confused!

I've just moved to Sardinia with my Italian girlfriend. As far as I understand it, being an EU citizen I now don't need to do anything much as a Permesso di Soggiorno is no longer required.

But to even breath it seems like I need a Codice Fiscale so that's number one on my to do list. And then?

Do I go for residence or domiciliato? (not that I understand properly what the latter is). I'd really like to be here officially ... but at the same time I understand that I don't technically need residence as the house we've rented is in my Girlfriend's name and she is resident here.

And then the other complication to making this decision is that i'm self-employed. My company is based in the UK, so I do all my work from here over the internet. When I pay myself, I transfer money from my UK account to an Italian account here. I pay tax in the UK still because of this, but should I be paying anything in Italy? Am I going to be making problems for myself by becoming resident here without sorting out the work situation?

So i'm completely confused ... if anyone has got ideas on any aspect of the above they would be greatly appreciated

jdr

Sorry I dont know about Italy, but being Europe may be similar to Spain, but then of course could be completely different.
Have a read through HERE similar question in Spain.

chris120

You are correct in that the permesso di soggiorno no longer seems to be required for an EU citizen. We will have to see how long it takes for that news to filter down through to where you used to be asked to produce it (getting other documents, registering vehicles etc).
You will definitely need a codici fiscale, but this is easy to get.
Everyone I know has gone for residence, you would need this to set up utilities bills, register vehicles, get a driving licence etc.
I’m not sure what domiciliato would give you either; I don’t know anyone who has it.
You are liable to pay tax (on world wide income) in whichever EU country you are ANAGRAFICALLY resident in (i.e. actually living in regardless of whether you have a residence certificate or not). You are anagrafically resident if you reside for more than 183 days per year.
I lived in Sardinia many years ago in Santa Margherita di Pula.

D4n

I'm in Cagliari so no distance away from Pula. I ventured in that direction for the first time the other day and it's absolutely stunning, completely different scenery to the other side of the South coast. Did you enjoy your time in Sardinia and what made you leave? ... if you don't mind me being nosey!

You're right about the Permesso and people still asking about it ... i'm going to carry a print-out of the web page from the Polizia di Stato website around with me (not that it will do me much good probably).

Residence is the way to go I think, especially as I need to register my car here. But in terms of paying taxes it's going to be painful, possibly. In the UK I pay basically nothing in personal tax as the payments are dividends and the company effectively pays the tax for this money instead. Does that mean i'm going to have to pay tax on money that's effectively already been taxed? And how would I go about even sorting this out? Again, any ideas you've got on this one would be really helpful.

And thanks jdr ... will check out the Spain info, you never know.

chris120

I had a great time in Sardinia, I claim to have introduced surfing to that part of the world in 1977, my local beach was Chia which is now a very well known surf spot. I also used to surf a lot in Buggeru (popular name with Brits - obviously) I also lived for 6 months in Poeto. I was working at the NATO Air Weapons Training Installation in Decimomannu until 1982.

Italy and UK (actually all EU member states) have a dual tax treaty; this means that you will not be required to pay tax twice on any income. Being paid in another way (as opposed to a salary) is new to me. I couldn’t begin to give you advice, I use a tax adviser in Rome, they fill out the forms, file and pay the tax for you minimising the bill and paying as late as possible. I have been in Italy since the 1970s and I wouldn’t dream of trying to complete an Italian tax declaration (although I do my own UK one). You have 2 choices I would say 1) <i>Fa finta di niente</i> and keep your fingers crossed – a risk but depending on how long you intend to stay might be worth considering. 2) Find a commercial adviser – best done by personal recommendation or stick to the big ones such as Deloitte.
I would also think twice about re-registering your car here, I assume you mean you have a UK plate, RH drive car. Unless you are particularly attached to it (i.e. a classic car) it is a major time consuming hassle and will cost anything up to 1,000 Euro to do, again two choices 1) take it back to UK, sell it and buy an Italian car. 2) <i>Fa finta di niente</i> etc. etc. but you will have insurance issues to resolve taking this route.

D4n

As summer was beginning to show it's face here, I was just thinking of what I was going to do this year ... surfing or windsurfing are both high on the list, so it sounds like I owe it to you! I'm actually living pretty much in NATO street too ... our neighbours on both sides work on the NATO base and we found out, just after we got the house, that a NATO Colonel had been trying to sneak it from us. That and the jets screaming over most days, it's still very obvious that NATO are around!

Thanks for the advice, the tax treaty sets my mind at ease a bit. I think I understand the system now, insofar as i'll need to file a personal tax return (or the Italian equivalent thereof) here, as opposed to in the UK, and fingers crossed it will turn out zero, or close enough to it, as it did back home. Having had a small taste of the Italian system though, I think i'll be getting myself a tax advisor to do it for me!

But thanks for the "Fa finta di niente" phrase ... that's not one I knew. It's definitely going to get used for something!