In reply to A newbie all over again! by Annec
In reply to A newbie all over again! by Annec
Probably best to check all the italian fiscal information. The section in English is
[url=http://www1.agenziaentrate.it/inglese/]Agenzia delle Entrate - Home page versione inglese[/url]
My understanding is that an annual tax return has to be filed by all owners of property in Italy as it generates a notional income. Dependent on the value of that property no tax may be payable.
In reply to A newbie all over again! by Annec
It was an old law brought back from 2008 (which has to be filed/paid in 2009) if I remember correctly. It was me who provided the answer to the post I think you are referring to Neil if that helps your search. If only I could remember the answer..........
In reply to A newbie all over again! by Annec
I understand that this is the formula for Deemed Rental income
not the main residence, and not rented out, assessed to income tax on an "imaginary" rental income.
calculation of the income
4/3 x rendita catastale x 105%
I believe the rendita domenicale has to be added to this
At least this gives an indication of the 'notional income' to which income tax is applied. I believe there is a level under which no tax is payable. It would be nice to get expert information on this.
In reply to A newbie all over again! by Annec
I remember seeing that on the forum before. I'll try to find it.
Check out these threads: they discuss the tax on notional income from property:
[url]http://www.italymag.co.uk/forums/search.php?searchid=712497[/url]
In reply to A newbie all over again! by Annec
[quote=Cassini;119922]I understand that this is the formula for Deemed Rental income
not the main residence, and not rented out, assessed to income tax on an "imaginary" rental income.
calculation of the income
4/3 x rendita catastale x 105%
I believe the rendita domenicale has to be added to this
At least this gives an indication of the 'notional income' to which income tax is applied. I believe there is a level under which no tax is payable. It would be nice to get expert information on this.[/quote]
There is a no tax area ONLY for residents. Non-residents don't have a no-tax area, this is the only thing that changed a few years ago, but as a result non-residents must file a tax return and pay a tiny amount of tax (the accountants fee will probably cost more than the tax) even if there is no actual income on the property.
I'm not an expert though so check with someone who is!
In reply to A newbie all over again! by Annec
[FONT=Century Gothic]I wish I had not found this thread :no: Thanks everyone for your information. I know that under EU law you cannot be taxed double if you have declared the property in your tax return of your resident country. Another issue on my 'to do' list [img]http://www.cheesebuerger.de/images/midi/konfus/c022.gif[/img] [/FONT]
In reply to A newbie all over again! by Annec
[quote=Monique;119942][FONT=Century Gothic] I know that under EU law you cannot be taxed double if you have declared the property in your tax return of your resident country. [/quote]
Not exactly. It's true there is a double taxation treaty between Italy and the UK meaning any tax paid in one country can be offset against tax owed in the other, but there are rules as to what income is paid where. Tax on income on Italian property must be paid in Italy and a tax return filed, and if you are not resident in Italy then this means everyone who owns a property here in Italy must effectively file a tax return, even for a notional income of say 10 euros.
But ask an italy/uk tax accountant.
In reply to A newbie all over again! by Annec
[quote=gardahomes;119963]Not exactly. It's true there is a double taxation treaty between Italy and the UK meaning any tax paid in one country can be offset against tax owed in the other, but there are rules as to what income is paid where. Tax on income on Italian property must be paid in Italy and a tax return filed, and if you are not resident in Italy then this means everyone who owns a property here in Italy must effectively file a tax return, even for a notional income of say 10 euros.
But ask an italy/uk tax accountant.[/quote]
[FONT=Century Gothic]Thanks. We do not live in the UK[/FONT][FONT=Century Gothic] but we will certainly check the information we have been given[/FONT] [IMG]http://www.cheesebuerger.de/images/midi/konfus/c034.gif[/IMG]
In reply to A newbie all over again! by Annec
[quote=Neil;116054]It's more than likely that this issue has been addressed elsewhere but I haven't been able to locate the thread. As of 2007, as I understand it, non-residents who have holiday homes are obbliged to pay tax in Italy based on its 'valore catastale'. Can anyone tell me what percentage of this value is due as a tax if the property is not rented out and generates no income?[/quote]
[FONT=Arial]In your case you are one of the few who knows the Italian law. In fact, we are obliged to submit the statement of income and those who don’t, may receive in future years of substantial fines. The obligation exists even if the property was not rented. Anyway you do not always have to pay taxes, but only submit a tax return. This depends on the type of building and its land value. We need to have the land value data to give a further response. [/FONT]
[FONT=Century Gothic]We had the same question. Besides council tax, it seems no personal taxes have to be paid if your property generates no income. I also checked this with the Bank Manager and solicitor at the time we exchanged contracts. However, tax could be payable dependent on your resident country’s tax rules and how or what rate they apply if they consider your second home as an asset or capital gains. Complicated to say the least :wideeyed:[/FONT]
[URL="http://www.homesoverseas.co.uk/articles/Tax_liabilities_if_you_live_or_own_property_in_Italy/5150-1002"]Tax Liabilities if you live or own property in Italy[/URL]