Do you pay INPS on rental income?I'

03/20/2018 - 09:55

Do you pay INPS on rental income?I'm thinking about taking the plunge with Italian residency and wondering if anyone can clear up how rental income is considered as far as INPS goes. I can see that INPS is due on income if you're self-employed, but I'm not sure whether I would be considered self-employed in Italy if I don't have a busines other than income from rental properties. Any ideas? 


if you bought your home in Italy, as a second home, and you can prove that your rental income does not exceed the minimum taxable, the only fees you will pay are the IMU and the TARI -

however, you can find more information at this link>

If you have 3 or more  holiday rental properties then its a business  with all that entails.  If you have 2 then you are a private individual renting out your house to tourists.  If you are renting out on standard registered longer term contracts then this doesnt apply.

Thanks, modicasa. Do you happen to know how this would work for overseas properties rented out? The definition of long term contracts doesn’t fit how our UK properties are rented on ASTs. If we become tax resident in Italy, we’ll pay income tax on worldwide income but I’m not sure about INPS, and now VAT, if we would be considered a business.

You probably need a cross border accountant,  but I would guess that the business is abroad, so in Italy you would just declare an income - but you need expert advice.  You will also be eligibile for IVIE and IVIFE on your worldwide patrinomy. 

Thanks, modicasa and Ugo. I’ve come to that conclusion too and will look for a good accountant shortly. In the UK you can have as many rental properties as you like and there’s no requirement to be self-employed as such which avoids the issue of social security contributions (NI, INPS) completely. I read the UK/Italy dual taxation treaty yesterday (in English - yes, I bottled it!) and it’s silent on INPS, I’m afraid, though it does talk about rental “income”.