Hi All,Do you know if the Italian

10/06/2014 - 15:56

Hi All,Do you know if the Italian governemt/Inland Revenue equivalent can tax foreigners resident in Italy Capital gain tax for a property sold in the UK and bought long before moving to Italy?  I am no British although I lived in England almost 15 years, and that I am not Italian either (but I am an EU citizen registered as resident in Italy).So far I have had to pay the IVIE tax as a foreigner owning a property in another country, and I now have to declare that I do not own it anymore and have sold it.Any one in a similar situation as me and resident here, I would really be happy to hear what you think?Thank you!

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Let me first say I don't really know, and you should seek current expert advice.As I understand it, any gains you have made worldwide are taxable in Italy. But your principal residence is exempt, so if the house you sold in UK was your principal residence at any time, any gains during that period should be exempt. In all likelihood, this will have been prior to your becoming resident in Italy.You should not be liable for any gains made before you became resident in Italy. It's possible therefore, that you will be due to pay tax on any gains made from the day you became a resident in Italy, up to the date of sale of the property. The amount of gain would be the difference in property value between those two dates. It would be up to you to get a formal market value for the date you became resident.Like I said, some indicators only - mainly because nobody else answered!TK