I own a property in Italy that I am

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05/31/2017 - 01:04

I own a property in Italy that I am thinking about renting out. Please can you advise as to whether I need to declare this in Italy (I live in the U.K. and pay taxes in the U.K.), what the implication of this is and how would I go about making sure everything was in place and above board?

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I rent my property out in Italy and live in the UK. I file the property with my UK tax return . You need to fill in foreign pages form. Phone the tax people in the UK they are very helpful when you are filling in the form . Keep all your receipts etc

Both Little Sparrow and Modicasa are correct in part.The income is taxable in Italy (very few if any deductions) and an Italian tax return is needed.As a UK tax resident the income is also taxable in the UK and must be included on your UK tax return. The Italian tax is claimed as foreign tax paid and is deductible from the UK tax (up to the amount of the UK tax)Because of the lack of deductions in calculating the amount taxable in Italy the amount taxable in the UK is usually less (frequently much less). This coupled with the effective rates of tax mean that for a basic rate UK taxpayer no additional tax is likely. For a higher rate taxpayer a little additional UK tax may be payable - it all depends on the expenses for UK tax purposes.Hope that helps.Panner

Little Sparrow Regardless of how experienced you are dealing with UK tax and filling in UK returns I suggest to get a commercialista to complete and submit the Italian tax return unless you are very fluent in Italian and understand the tax system. If the only income is the rental income then it should not cost too much - there are some international accountants that can do it (likely to be pricier) or a commercialista local to where your property is.  

In reply to by Panner

Many thanks for the advice, I have a commercialista who sorts out my council tax so I will pop and see her in July. I have all my English paper work,recipts and accounts, it's only one property the rentals are not expensive and do not make a profit  ..it just helps with the cost of running the house.