Renting

Just because your income is paid into an English Bank account doesn't exempt you from paying tax on it here if you are resident here.  I work part time for an English Company and income is paid (below UK allowance) into an English account but I still have to declare it here and pay tax and INPS on it.  Talk to Michael Murphy he is an expert on this.  He is often referred to on this site but if you are not able to find contact details I can let you have them.

Presumably you will have a tax (free) allowance in Italy as in the UK. Surely it's not necessary to engage an accountant to help you manage (with apologies) a pretty paltry sum. No wonder the black economy is so large in Italy!  I'd be tempted to keep mum...

Oo err..

once again it seems advice here is often aimed at finding ways around.. if someone actually suggests following laws.. anyone that owns property here has to fill in a tax return form and on that there are spaces for income of any sort which needs to be declared.. ie by filling out the tax form you have written documentation that you sign as being true and if they investigate and find different its a fraudulent decleration.. fine if you have friens in high places but csostly if not.. and its not that they have to prove anything they will just fine you and if you do not pay add to the fine for every days delay.. contest a fine and they will then maybe allow you to pay less and in smaller payments.. providing this is done with a certain amount of days of the notification.. so the best advice is the one thats least palatable above maybe.. but to be honest you do not want to get on the wrong side of the tax people here.. the tightening up process is already underway.. and for rentals it has been law for a while.. all rental contracts have to be registered .. but for those renting out places that for sure as you said did it without paying any tax there are suprises on the horizon.. in a fiscal sense with the approved fedreal laws taxation and payments/declerations are now for the first time to be previewed within your local comune.. as they pretty well know..ok not if you live in a big city who is who, what they drive, how long the live in a place.. and strange visitors to the house.. on a regular basis.. even worse a cleaning person or company for transitions..  it makes whats going on very obvious.. so if its any satisfaction if you start within the law..then you will not have that dreaded fear of the psotperson turning up with mail that they refuse to leave unless its signed for by the person its addressed to and a estimate of tax owed plus fines that will make it seem like you are entering a nightmare ...  which will be hitting a lot of your aquaintances soon if thats any consolation.. but in there cases the estimate will go back most probably over the years they have owned the property as the agenzia del entrata assumes once they have been made aware of things by the comune that you have been defrauding the tax system ever since you owned a property here.. and will estimate it all on estimated incomes that they will have a set of figures for.. and their figures generally are very high compared to real earnings..  

You can officially rent out your main residence for a maximum of 60 days (hmm - might be 45 - sorry I can't remember precisely) without paying tax. You really do need an accountant's advice and you may not have to pay tax anyway.

i think it might well be 30 now..but there is a difference between being allowed not to pay tax because its filled in as non taxable income and not paying tax because you think you do not have to.. i think the thinking is you declare income and then explain why you do not pay tax.. which benefit you might loose if total income or some other income is then added.. thats why you have accountants.. well someone knowledgeable to do your form filling.. actually 30 days and under you might not need a registered contract..above 30 days you register a contract..but to be honest keeping up with rule changes is hard if you dont get notifications ... so again thats what accountants are for..  they keep you out of trouble..

There seems to be some tax free allowances see below from "angloinfo"

Deductible Burdens and Tax Allowances

Tax allowances include the so-called "no-tax area", (a deduction of between €3,000 and €7,500 to avoid taxing those on low incomes), as well as allowances for dependant family members (dependant wife and/or children). Some deductible burdens (oneri deducibili) are expenses which can be used to reduce the total income. For example: some types of medical expenses, national insurance contributions, donations to religious institutions, donations to universities, research bodies and associations for the protection of assets of artistic interest, the cadastral income (income deriving from the value of any land owned) of the main residence are considered to be deductible burdens. Some deductible burdens are expenses which can be used to reduce the amount of the gross tax due. Again by way of example: medical expenses, passive interest on mortgages, education expenses, donations to Bodies or Foundations for research, for performing arts, for social purposes, donations to political parties.

It's miniscule Bunterboy. About €800 for a child and the same for a dependent adult plus that is only if you earn less than €15,000 pa. If you earn more then the allowances are less. You can decut many more items than in the UK but it is INPS that is the killer. If you are fortunate enough to not have to pay a minimum sum (which is payable regardless of whether you make any money or even bill a penny) then it is approx 25% on top of the IRPEF and local taxes. The info on Angloinfo is often out of date unfortunately. The section on residency is very out of date for example. A good accountant is vital here.

How on earth can the average guy in the street find the dosh for an accountant I wonder Penny ? Although I expect their fees are tax deductible.

Yes, their fees are tax deductable! It's foohardy not to have an accountant Bunterboy. If you make a mistake with your taxes or get something wrong then it is extremely costly. Tax fines are in the region of 30% plus fees and interest not to mention the fact that the taxman can decide you have underdeclared and send you a bill accordingly. He does not need to prove this - you have to prove that you haven't! Personally, I don't understand how the average person affords anything in this country as it is so expensive.

As Penny says it is essential to have an accountant, especially for peace of mind, the last thing anyone needs is to be investigated by the finance police. We actually do not find ours expensive and the initial consultation was free.He has other English clients in the same position as ourselves, if anyone in the Montegiorgio area wants his details will be happy to pass them on.