Latest property in Italy
Mon, 2009-10-26 14:59
Does anyone out there rent out their non-Italian home whilst being resident in Italy?
I’ve just got a letter from the Agenzia delle Entrate saying I have to declare overseas income, and I guess that includes UK rent.
I rent my UK home out for under GBP 1,000, pay 15% plus VAT as a management fee and 600 a month in mortgage interest. What’s left tends to go on fixing stuff, so never thought I’d have to worry about paying tax on it.
But I understand that in Italy they tax you simply on 85% of the gross rent and ignore the mortgage interest as it’s not an Italian mortgage. That would leave me with a nice tax bill and as I have been collecting rent since 2007, presumably a nice fine too.
I’m an employee here, so have never sent any forms or declarations to the tax authorities.
Has anyone been in this situation have any suggestions? Is the above correct? And are the declarations something that I can do myself?
Many thanks for anyone who has any advice at all.