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Tax Advice - working for a UK Ltd company and in Italy

Tax Advice - working for a UK Ltd company and in Italy

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Old Dec 11th 2017, 4:06 am
  #46  
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Default Re: Tax Advice - working for a UK Ltd company and in Italy

Originally Posted by Pulaski View Post
You own a British corporation, which is every bit as much an investment as a holding of shares in British Telecom.

I suspect that you will at least have to pay Italian capital tax on the balance sheet value of your corporation. .... Which may be little more than the bank balance plus year end receivables, less payables if any.
I think as the only director of a small limited company you might be the owner of 1 share. The value of that 1 share is linked to the value of the company as Pulaski says and it has to be declared on the Quadro RW as an asset.
If you keep your Italian residence below 183 days per year you will save a lot of money.

Last edited by philat98; Dec 11th 2017 at 4:27 am.
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Old Dec 16th 2017, 11:05 pm
  #47  
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Default Re: Tax Advice - working for a UK Ltd company and in Italy

Originally Posted by modicasa View Post
If you are resdient in Italy, you must fill in a tax form yearly, which has a section for income earned outside Italy - you cannot just say nothing to the Italian tax authorities. Whether you will be liable for tax in Italy is anyones guess, especially after brevet, but if you really dont want to pay in ITaly, then dont be a resident.

A complication on the UK residency can be the Italian Tax determining the management or control of the company is in Italy as you are the sole director and shareholder.

Its not the only question but it part of double tax agreements in determination hence other posters answer on complexity.
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Old Dec 21st 2017, 12:02 pm
  #48  
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Default Re: Tax Advice - working for a UK Ltd company and in Italy

I too learnt the hard way i.e. came to Italy without realizing what that would mean for my income and without doing a bit of research beforehand (I would still have come if I knew though even though you loose about 20% more of your earnings here in comparison with someone earning the same sum in the UK which is gigantic over a long period!). What is more there are many rather silly and time-consuming rules that make it hard for self-employed people to work and fulfil tax obligations. I won't go into them as the only way I can put up with these is to try not to think about them. As far as tax is concerned things are simple - if you live here more than half the year you have to declare absolutely everything you earn and possess anywhere in the world, including any salaries or dividends earned in the UK and will be taxed accordingly with deduction of tax paid elsewhere. The only way of avoiding paying tax in Italy is to live more than half the year elsewhere. You can stay under the radar a bit to start with but IMO this becomes risky after more than a couple of years and impossible if you are a resident. If you are earning in Italy there are a few ways of reducing your income tax considerably such as the "regime agevolata" which is a bit like the "autoentrepreneur" system in France and perhaps you should look into.
Concerning foreign assets the rates are less than those mentioned by others in this forum - 0.2% on all financial savings and assets and about 1% on property but based on the council tax band so this is just about bearable
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