Sylsmum

My work in Italy wants to give me a UK contract and pay me in the UK in sterling. I will lose my residency even though I live and work in Italy and have a child at school there. Does anyone know what the advantages and disadvantages will be ? What about health care entitlement, pensions, and how will it affect me buying a property or setting up a business in the future ?

modicasa

who knows? is the real answer, but your work seems to be being a bit furbo. If you live and work in Italy, but are paid in the UK the tax offices everywhere can have a field day. I would just make sure that your work pays for your Italian tax returns and commercialista... or rather your work files all your Italian paperwork.

LivingHere

Why would you lose residency? How long have you had it? If it is for more than five years then you can become a permanant resident and be entitled to healthcare.
I agree with modicasa's 'furbo' though.

mikelincs

Why do they want to do that? Don't understand why you would lose residency, you will still be living there and working there. Good idea to check would be the schooling and healthcare provision, lose either of those and your change in work contract will cost you a lot of money.

covboy

I presume they will be paying your "net" income in sterling ?and you will still be a employee of theirs ?,if this is the case the only thing i would be worried about right now is the exchange rate,it seems to me by the time you have exchanged back to Euro each month to feed the wife and kids unless your on a big big salary your going to end up loosing each month.

Garbatellamike

I have an arrangement with my HR Dept to pay 50% of my salary into a UK account and 50% into an Italian account. It might be worth the OP speaking to his HR people to see whether they can do something similar.

37100

Healthcare is the only sticky point. If you've been here for five years, it isn't a problem. If not, it is easily resolved by getting the necessary paperwork from the UK. Look it up on NHS direct. However, the EU introduced a limit on the number of yrs that it is possible to work in this way (without paying tax here)-5yrs max. After that what, will will your employers do?

Sylsmum

I would be employed by another company they have set up in the UK ! But I have been resident in Italy already for 5 years. I do not plan to work for them for more than another 2 years. They are doing it to avoid paying tax in Italy.
I do not think it is to my advantage, but am not sure. Someone please clarify !

modicasa

Of course its not to your advantage. As a resident you must file a tax return. If you have no earnings in Italy you have no deductions. You will still need to file a dichiarazione dei redditi and there will be cross border checks, but the thing to remember is that for the AdE you live adn work here, therefore your salary is earned in Italy not in the UK and that could lead to problems.

37100

A past member of BE worked in this way. Or rather, her husband did. The company paid taxes and everything in the UK PLUS taxes due here as residents. I think that you will have to make it absolutely clear -and in writing- that that will pay ALL tax due be it in the UK or here. Are you still resident here?

covboy

Yeah it seems like the company are trying a tax avoidence exercise in Italy ,as Modicasa says as a resident you will still have to file a tax return.
They then plan to move you to a UK company they have set up ??,
Mmm i would be asking carefully about the tax implications ,you coulld get hit twice.
I do not think it would affect the buying of property for example as you would still have proof of income even if it is divided between two banks.

xstesix

I've just registered so pls excuse my late comment.

My 3 children go to school here even though I'm not resident, the schools are obliged to take on all children despite residence etc. As for your employer study the situation well as it could be beneficial for you. Seeing as here in Italy we pay too many taxes.. For your health care, you can always look at getting private health care. good luck with your decision