Gareth's activity

To answer the first question: So what would be a tax efficient savings vehicle for UK citizen resident in Italy? If you are a UK citizen resident in Italy then you can use a pension savings vehicle which would allow you to contribute up to approx €5000 euro a year, tax free. If it is lump sum you wish to invest then it is merely a case of managing your investments in line with the income and capital gains tax rules as there are no real tax break accounts, like the UK ISA. As for the second comment about the 5% withdrawal limit.  Yes, this does apply in the UK, but Italy does not subscribe to the same rule, so if you are an Italian resident for tax purposes you would not get the same benefit and it would be deemed income.  If you are a UK resident for tax purposes then this would still apply.  However, remember that the 5% rule is tax deferred and not tax exempt, so that you may do so for 20 years but then at that point you would have to pay tax on the cumulative withdrawals. As for assigment without a chargeable event this is again true. However, the reason for the posting was that because of the new legislation likely to come into effect soon (and dependent on your residency, i.e to which set if tax rules you fall under), these events may become reportable to the country in which you reside.  So the simple answer is that your residency is key.  If you are spending more than 183 days a year in Italy then for all  intents and purposes you could be considered Italian tax resident and fall under the laws of this country.  If you spend less than that time plus time in another country i.e UK, then you may fall under the rule of that country instead. The idea of the European Savings Tax Directive is to harmonise and make transparent sources of income.  This does not mean that individual countries rules will not apply, it depends on your own situation.  Lastly, if the offshore Bond is used correctly, i.e for Inheritance tax purposes, it is still a good tax planning tool.  However the myriad of uses is being slowly withdrawn. I hope that helps.

Quite agree.  A little bit harsh, Flip !! Danno99 is only asking for advice!

Was just offering free advice.   Free for all, take it or leave it.    But, you are right, this is another great internet forum and well if it helps a little known UK business in Italy on the marketing front then I hope you all don't mind too much. 

Badger,  Clarification needed, no problem !   What I am trying to highlight here is that most of the investment funds promoted by banks or financial institutions, or even portfolios managed by quite a number of advisers or discretionary managed by investment groups, are not based on the principles of maximum return for the end customer, but maximum profit for the institution. How do they do this?  Well in most investments, particularly actively managed, the marketing is around the fact that it can out perform the rest of the market and its investment fund peers.  But the reality is that most investments can't.  In fact research shows, going back to 1954, that rarely do managers out perform their benchmarks or peers, and if they do it is for such a short space of time that it makes no difference in the long term, but costs a lot more. The reason for this under performance is the very structure of the investment in the first place.  It is actively managed.  In other words, the investment can generate high levels of costs (chargeable to you the customer)  just by moving things around on a regular basis.  Add to that the commissions they earn for doing the same thing and trading costs (a subject for another time), then the returns you receive are substantially less than might otherwise be in something low cost according to your own life and needs rather than a well marketed and seemingly trendy or attractive investment. Some examples of investments that employ these strategies are absolute return funds, market neutral strategies, multi manager, fund of funds, structured products and capital guaranteed products. What you might prefer to look at are index trackers and exchange traded funds.  They offer a low cost approach to investing without all the glamour.  Add to that a bit of strategic asset allocation.  In other words, spreading your investment risk and using diversification as your safety net and hey presto a portfolio that works and doesn't cost you a fortune. More money back to you the customer.  It is a little more complicated than I make it sound, but that is my work.  If you need more clarification then don't hesitate to make another post and I will try and simply things for you to help you and other readers make better financial decisions for the future.  Unless you are doing it already! ;0)

This is not an easy thing to resolve.   If your Italian buyer does not want to transfer the funds to your UK bank account because of the expense then the only realistic way is through your bank account.  There are other routes like Western Union but they are much more expensive than the bank. My main worry would be the currency exchange which you will lose out on if you are converting to GBP from Euro in the transfer.  The banks normally take about 4% in this transfer between the sell and buy price on the currency.  I work for a company that could do it for 1%, if you are interested, but that does not resolve the issue of how to get the money from your Italian buyers bank back to the UK.  Maybe you should offer to pay his charges and that could be the quickest way, rather than having to go through your bank first.   Sorry I can't be more help.

I have just finished 'The Uncommon Reader' by Alan Bennett.  Its a very English read but a super little book and very short so a good one for a hot summers day.  Other than that its all work books for me I am afraid and I am not sure that you would be interested to hear that I recently read the Biography of Warren Buffett - The snowball.  Although I have to say it has some gems in it. Oh I tell a lie,  I nearly forgot.  I read Richard Dawkins - The greatest Show on Earth.  A great look at Evolution.  I din't know a lot of the theory and what are now facts.  very interesting indeed.

I don't know of anyone in your area, but you should, check out Charlotte Oliver.  She does write ups on this site and she works for the company advertised on the top of the website.  I have spoken with her a few times and she is very good.   Maybe worth giving her a call if you can do your business remotely.

Moruzzo., Although I agree that lifetime jobs should be banned, I also agree with what you say about working hours.  Actually to impose Anglo Saxon working hours on mediterranean culture is madness.  Despite the weather which is prohibitive to daily working hours ( mainly in the summer), it is why a lot of us decide to come and work in Italy.  We are sick of the rat race of London or  Manchester.  I agree whole heartedly.  Keep the hours as they are.  There is nothing better than having a long lunch knowing that you can make up the time later in the day.  We would all be eating sandwiches at our desks and working through lunch otherwise...what a life that is...and I should know !!!

Thanks Penny.  I will double check asap.  

I am a Brit expat and I was told recently by my accountant that if I could show that I was paying into another EU stste pension scheme and could evidence this, then I could opt out of INPS.  I have heard different stories from different people, but my understanding is that thi is correct.  Therefore I pay my UK state pension contributions and opt out of INPS. I would imagine that you would have to speak with the Dutch authorities and confirm with them if you could pay and what you would need to pay and then prove this to the Italians Hope that helps