About three years ago I was up to speed

12/31/2015 - 06:53

About three years ago I was up to speed with the tax situation if you have property in both the UK and Italy but am not sure what is the case now. It may well be that we'll re-take up residency in Italy again at some point this year but I wanted to find out what my situation would be as regards paying taxes on the property back in the UK which would be let? Initially this would be my sole income , ie no income would be earned in Italy for a while. I also wondered what happened about that frightening new yearly tax (can't remember its name) that you had to pay on the value of any second property overseas that cane in around 2010/2011ish? Does that tax still exist?...I remember there was a massive uproar about it at the time and I think it disappeared after a few years. Thank you in advancefor any advice!

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Living

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I really can't see why anyone would want to take up residency in Italy unless they had to! The tax in question is IVIE (Imposta sul Valore Immobili Esteri) and as far as I know is still there. There was a lot of discussion on the value to be used for the calculation and what could be deducted for tax already paid in the country the property resided. I‘m not too sure if this was ever clarified in the case of the UK. I do know of at least one person who initially paid it and then was told by their financial advisor that they were in fact not liable for it….

Thanks for the IVIE info...as regards residency it's not just a question of choice; my understanding was that registering for residency is obligatory if you're staying for a stretch of time over three months?