2201 EU Taxes(is Italy different from the UK)

Welcome to the forum. I'm not sure that I can aswer your question as it gets quite complicated. It is better to ask a lawyer who deals in Itailian and British tax or an accountant but maybe after the festivities someone will answer from the forum for you.

Merry Christmas

There are other threads dealing with this type of issue. However, there are some basic concepts to understand; your tax status is generally contingent on your "residence" status for tax purposes (which may be different to other interpretations of "residence") broadly, another fiscal authority may only tax you if you are tax resident (there are exceptions as always); there is a difference between income and capital; the existence of a double tax agreement between UK and Italy. To give a general answer to your questions

1. If you are not tax resident in Italy at the time you earn the income but the income suffers tax in the UK then there is no further income tax chargeable.

2. If you are not tax resident in Italy at the time you sell your UK house, then the Italian authorities have no power to tax the gain. If it is your only property in the UK then you are unlikely to pay UK CGT.

3. If you are not UK tax resident at the time you sell the property in Italy then the UK has no power to charge CGT on the sale of your Italian property. Howver, there are special rules around residence for CGT purposes designed to stop people becoming UK non-resident only for the year in which they dispose of chargeable assets. But if you are contemplating a stay of more than 5 years you should not have problem.

good evening , and happy new year to all

When you buy a property in Italy , you has to make italian "dichiarazione dei redditi " (= P6) , and pay italian property tax ! , the Italian financial inspection is transparent to all other EU countries financial offices , the the financial UK service know that you have property in italy , and do not apply tax on your's italian property .

As you sale an italian property , it doesn't matter , if before or past five year , you earn a money , and you pay tax (12%) on this money on your's bank account : this because for EU financial laws you do not can take money for property sale (if the sale price is upper 3150 eur) without bank draft , and bank draft can to be changed only on bank account ( or bank account in UK , but , at this time when you change an italian bank draft , you pay thax on change ! )

Do not have any tax on export money from italian territory to another EU country .

Ugo
The Specialist of italian real estate mortgage
[url]www.lifeinitaly.it[/url]

Davido - if you are confused with the advice please PM me. I'll do what I can to explain.

1- If you bought a house in Italy and got the residential permit “Certificato Residenza”, then when start to transfer some funds to Italy later on(which you have already paid taxes on it in the UK), do the Italian tax you on it in Italy as income?

2- Would the Italian think of your residential house in the UK as residential or as a second home, ie would they apply a capital tax on it when you sell it and transfer the money to Italy?

3- If you decided to go back home to the UK after many years(ie sold the house in Italy), would the UK tax you on the money which you have already paid taxes on it in the uk?

Regards
:cool:[/QUOTE]

Sinalpha is correct on all points but just a little expansion:

1. If you are treaty tax resident in Italy they can tax you on your worldwide income but you are credited for taxes paid in the UK. You become resident in Itlay in three ways: a days basis, an habitual abode basis or a domcile basis. Even if the Italians say you are resident in Italy, you may be resident in the UK at the same time, and in fact may be treaty resident in the UK.

2. If it is a second property and you are treaty tax resident in Italy then in theory you could be taxed in Italy; but a little planning should mitigate.

3. It depends how you left the Uk and for how long. Sinalpha is quite correct to state the 5 year return rule, and it is worth stressing that this applies when there is a sale of an asset during his UK absence.