Residency - pros and cons?

pamela Image
03/13/2011 - 21:37

I am a UK citizen and I own a house in Italy. I go back and forth between Italy and the UK frequently but I am not an Italian resident. What are the benefits and disadvantages of being a resident, both from the Italian and UK viewpoint? 



I'm not sure it's a case of pros and cons.  As far as I know It's a simple matter of how much time you spend in each country. Where is your 'more than half'?  That's where you a resident or are supposed to apply to be resident.  If that changes you're supposed to change your residency status although I'm not sure how that would work if you are one year on and one year off so to speak.  There are advantages such as lower property purchase tax (not much good to you now sadly) and utilities apparently and being able to buy a car etc (many more I'm sure but I'm no expert) but if you are resident here then this is where you pay your tax too.  If you are wavering at more than 5 months here in Italy, and think you could fulfil the criteria required for residency, then it might be a good idea to speak with a professional.  Let us know how it works out.

is what has already been said but if you live here on a more or less permanent basis and more importantly if you work (generate your income here) then you have to become resident.current tax rates are higher than the uk,on top of which you will have nat social contributions to pay and other incumbancies.if you are not living here at least the amount of time that consitutes living somewhere and you don't work here then you're better off where you are.