Residence in Italy whilst still having house in UK

Most of this depends on how honest you feel and what you declare.....it's up to you as the chances of the Tax man catching up with you on what you have described are pretty slim I think. Decide where you want to pay tax and adjust accordingly is my motto..

I think my concern would be on what basis would you appply for residency? If you don't have a job here (in Italy) then your local comune would most likely ask to see proof of means of support here ie income / savings / pension etc. It's not a given that it would be granted and then where would you be? I think many people bought (and were encouraged to buy) prima casa when actually it was only a rough plan to live here at some stage in the future. If this is seen as a tax dodge, rather than you simply keeping your options open as you move forward, then you may be in hot water here. I would take advice from a commercialista immediately as the clock is already ticking.

Hi rachel68, It is a VERY interesting situation that you have, I sadly am not in a position to advise directly...........BUT, my general thinking is to play with a 'straight bat'. I think it would be VERY likely that you would be granted residency here as there is a bit of a 'self-declaration' ethic here at times. I tend to think that you are likely to be paying more tax in Italy by playing the straight bat, but you will feel better for it than risking the wrath of the tax people here. Think positive...........where do you want to be? do you want to do things correctly? Do you want the risk of worries ? Good luck and enjoy this wonderful country............. S

If you are within the eighteen month period, I'd think very hard about whether it would not be more economical for you to pay the higher tax rate on the house purchase, and not to become resident. This is an option available to you, and does not incur any fines. Only when you have become resident (by registering yourself on the anagrafe of the comune) do you become liable for IMU on your British property by default, and enter the �� tax system for worldwide income. If you are genuinely not resident (ie spend more than 183 days outside Italy) then you simply do not enter into the �� tax system. You will have to pay IMU on your Ligurian property (and at a higher rate than if you were resident). When you are genuinely resident here then your house will become de-facto your prima casa. You won't get the purchase tax back, but everything else will be the same as if it were bought as prima casa.

Thanks so much for the help! This is all really helpful. Perhaps I should explain a little more; I am a freelance classical musician and am really hoping to audition for work in Italy alongside being 'on site' with the house renovations (musicians often survive with this hybrid job combination!). We were also planning for our 3 1/2 year old to go to the village scuola infanzia so really I would be living in Italy. The fly in the ointment is that my partner's work means I'll be travelling between where he is based and Italy. This will become clearer over the next few months when we know where his next posting will be. We are told the casale renovation costs will be in the realm of €170k so not being resident at this point will also mean hugely expensive building taxes at a non-resident rate plus no access to the tax reduction (€48k over ten years?) you can claim for renovating an old derelict building in Italy. I suppose the big issue is what happens if we sell our house in London and decide to downsize to release funds at some point. In the UK it's our sole home so no capital gains but will the �� tax office be entitled to a chunk of the profit? Seems a little unfair as if I sell in a year I will have only been an �� resident for a fraction of the time that we've owned the UK house. Any ideas of a good, reasonably priced commercialista? Thanks again!