Hi allThis post is mainly aimed at those of us who are foreigners RESIDENT here in Italy.As a British person resident here in Italy for 3 years with a house I seem to have got caught up in a mess.We have some savings back in UK bank for rainy day
Uk ISAs, you are allowed to hold them dormant BUT, as in Italy you must declare all income ( interest recieved and paid) you will be taxed on untaxed amounts.Next year here in Italy you will also be required to declare any land or property abroad, though they are saaying this does not necessarly mean extra tax liability.For us I think we must pay the fine, the annoying thing isthat if we had known all this 3 years ago would have brought everything here at better exchange rate and earned a better rate of interest here, we have now earned hardly any interest ( and paid uk tax on it ) and now face an extra 5% fine. Part of the joys of living in Italy, you have to learn the hard way.Still trying to get my understanding correct on one point, you are allowed to keep abroad 10,000 euros per person but not sure if you still have to declare or not this amount, will try to find out.My advice is for those thinking of living here, you must always think about the addresses you use for things but obviously still pay taxes due.To those that are or have been thinking to take residence here to pay less tax when purchasing a house here as holiday home really need to sort out the situation as long term will cost you more in income tax fines, assuming you have not delared income, work , houses abroad.One more problem almost paid for, now I must get on and sort out leaking roof left for the second time by what must be one of the worst builders i have ever dealt with.Will keep you informed when I have more info.
For info, we are not pensioners or retired. I am unemployed here ( small business failed ) wife is an employee here. we own a house and are both registeered as resident here in Italy.As I understand the situation :-If registered as resident here in Italy then also automatically resident fiscally, therefore subject to Italian taxation laws. you are on the guardia di finance radar.If holding funds abroad ( uk our case ) and the uk bank has your address as abroad then automatically european savings tax directive active and your details yearly are sent central somewhere and then off to relevant tax authorities. Guardia di finance has your name again ( amongst thousands of others admittedly).As resident and hence fiscally resident you must declare yearly via commercialista all income from all sources. ( this we missed out on hence fines now due).Lo scudo fiscale is a shield if we decide to bring money in and pay fines, our bank here sorts all paperwork and pays fines and issues us a certificate ( scudo fiscale)if we get a visit by guardia finance we show cert. and they go away ( in theory).sorry must dash, a knock on the door.
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Uk ISAs, you are allowed to hold them dormant BUT, as in Italy you must declare all income ( interest recieved and paid) you will be taxed on untaxed amounts.Next year here in Italy you will also be required to declare any land or property abroad, though they are saaying this does not necessarly mean extra tax liability.For us I think we must pay the fine, the annoying thing isthat if we had known all this 3 years ago would have brought everything here at better exchange rate and earned a better rate of interest here, we have now earned hardly any interest ( and paid uk tax on it ) and now face an extra 5% fine. Part of the joys of living in Italy, you have to learn the hard way.Still trying to get my understanding correct on one point, you are allowed to keep abroad 10,000 euros per person but not sure if you still have to declare or not this amount, will try to find out.My advice is for those thinking of living here, you must always think about the addresses you use for things but obviously still pay taxes due.To those that are or have been thinking to take residence here to pay less tax when purchasing a house here as holiday home really need to sort out the situation as long term will cost you more in income tax fines, assuming you have not delared income, work , houses abroad.One more problem almost paid for, now I must get on and sort out leaking roof left for the second time by what must be one of the worst builders i have ever dealt with.Will keep you informed when I have more info.
For info, we are not pensioners or retired. I am unemployed here ( small business failed ) wife is an employee here. we own a house and are both registeered as resident here in Italy.As I understand the situation :-If registered as resident here in Italy then also automatically resident fiscally, therefore subject to Italian taxation laws. you are on the guardia di finance radar.If holding funds abroad ( uk our case ) and the uk bank has your address as abroad then automatically european savings tax directive active and your details yearly are sent central somewhere and then off to relevant tax authorities. Guardia di finance has your name again ( amongst thousands of others admittedly).As resident and hence fiscally resident you must declare yearly via commercialista all income from all sources. ( this we missed out on hence fines now due).Lo scudo fiscale is a shield if we decide to bring money in and pay fines, our bank here sorts all paperwork and pays fines and issues us a certificate ( scudo fiscale)if we get a visit by guardia finance we show cert. and they go away ( in theory).sorry must dash, a knock on the door.