Tanguera

Hello everyone.. I do hope I am not repeating an age-old question but I cannot find the answer to this anywhere..

I am living in Italy and currently not working. I am now ready to start working again and am thinking of working for a UK company from home in Italy and they will pay me in Sterling using the PAYE scheme.

I know that if you live in Italy for more than 6 months of the year you should be paying tax in Italy

Would it be possible for me to pay tax in Italy if I am paid in Sterling through a PAYE scheme in the UK? would I have to become effectively self-employed and open the dreaded partita IVA?

I’ve looked at the government websites and it appears that you cannot be classified as seconded if you were living abroad at the time you took up the job so that option is out.

I know that the Italian taxation system is complicated and expensive and I want to avoid getting involved if there is a way not to.

If I used my UK address and continued to live in Italy without declaring to anyone where I was actually living, would I ever be able buy a house in Italy and continue that paying tax in the UK or would I have to become a resident and therefore become liable for tax in Italy?

any advice is greatly appreciated.. I know I will probably have to visit a commercialista.. but everyone here seems to have different opinions and I'm not sure any more who is right and who is just making it up as they go along!!

Many thanks

Lorna at Vicenza

Hello.

I can't really help you unfortunately, but wanted to say hi and welcome.

I think the general rule is 183 days rather than counting an average 6 months.

I can't help with the tax, but I do know that without Italian residency you will not be able to buy a house or a car.

37100

AFAIK Strictly speaking, you should pay tax here, but many expats don't. Just recently, the hard up Italian goverment has started taking notice of these things, but as long as you keep a UK address and have your salary paid into a UK account, you should be able to get away with it. Avoid that dreaded partita IVA at all costs if possible. And yes, you can pay tax in Italy on a sterling income or any other currency for that matter. Goes with out saying. Get good tax advice in the UK and here.

You will pay more tax on property you buy if you don't take up residency and buying a car is a no,no. You would also only be covered for emergency healthcare, but with the recent ticket rises, simple things shouldn't cost much more privately.

Aversion

I will be in a similar situation when I move to Italy next year, although my income is paid from Canada to my bank in England. At the moment I'm dealing with tax in the UK and 'withholding' in Canada. A third country's processes will make life a lot more complicated.

I will want to buy a car to make the most of the country and opportunities (I'm a keen photographer) so residency is needed for that. Would it be enough to show "available funds", so you're not going to be a drain on the Italian welfare system, to get residency?

If I opened an Italian bank account, once I know I'll be staying, I could bypass the UK system altogether, but I know it will take me 6 months or so to know if Italy is going to be a long term move.

6monthshere6monthsthere

Well, I am setting off "In two weeks! and its UK tax for me"
I will be in Italy for 36 weeks in total.

I suppose its different if you are moving for good or for whole years, but there is no way I am paying tax to the Italian Government.

I am generous enough to bring my mighty British pounds over to spend in their shops, but I will not be supporting their central government with my taxes - that is UK tax -

Paid in £ from UK Company

Lorna at Vicenza

With regards to the residency thing ......... we need to know if you're a Uk/European citizen or Candian because different rules apply about how to get residency.

Aversion

I'm British, hopefully that will make things easier.

I'm trying to keep life as simple as possible and avoiding unnecessary complications in the first few months I'm in Italy. I do understand that at the best of times Italy is going to be a complicated and frustrating place to get things done regardless but minimizing that will be the goal, especially in the first six months. I'm sure I'll be staying long-term so I will have to deal with it at some point I know.

Aversion

I don't mind paying tax in Italy if I'm living there, using the facilities, the roads, the health service, etc. That only seems fair. I just don't want to have to deal with three different tax systems! Two are complicated enough.

Lorna at Vicenza

It does indeed make things a lot easier for you.

To ask for residency in Italy you need to go to your local town hall. If you are not employed here they will want to see proof of funds that you are able to keep yourself. Bank statements are ok.
They will also want however, proof of a private health insurance so that you are not scrounging off the state health system. I'm not saying you would do that, I'm just saying these are the new rules.

37100

Thank-you Aversion. It is nice to here from someone who just doesn't just want the benefits of living in Italy, but object to paying taxes, getting Italian plates for a car etc. Funnily enough, it's usually the people who aren't paying anything who are the first to complain.

Aversion

Thanks Lorna, that's a great help! I think I read in another thread (I've been lurking for a while now) that €10k was enough for proof of self-reliance, though I also saw that might vary from place to place.

37100, thanks! I'm all for paying and then complaining

I'm looking to move to somewhere in Veneto, currently favouring Padova. I've been to the area a few times but I'll be taking a trip there in the new year to scope out some places with the idea of making a move in the spring. No doubt I will be plaguing this forum with questions then!

Lorna at Vicenza

That's more than enough - I think the average is around half that. There is an official sum somewhere. One of our other members knows it. It might be 5.800 euro.

Any questions - just fire away.

Aversion

Thanks again Lorna, I'll start building up a stash

Lorna at Vicenza

I think, but am not sure, that that sum is mostly used for people with no income - ie, savings.

If you can prove you have a regular income or a regular pension then you can prove that you can live here from month to month with enough money coming in to keep you.

Like I said - not entirely 100% sure - but the circa 5.000 euro expected is an annual figure.

Aversion

That would be my situation initially at least, I wouldn't be working during the transition period so I'd be using savings.

I assumed that applying for residency with reference to savings rather than a job income would be easier. If I say I'm earning at that time won't it set in motion a whole process of assessment and taxation? Once I'm on my feet and know I'm staying put then I can bring up the whole taxes and income issues and deal with that in turn.