Residence in Italy whilst still having house in UK
I am wondering if anyone can help with this property tax minefield! Last September my partner and I bought a casale in Lazio to renovate and which will be our main home in the years ahead. It is a long term home for us. We bought it in my name solely. I also have a house in London which has gone up in value substantially over the last eight years. We currently rent out this home in London and rent in Scotland as my partner's job involves frequent postings abroad. He will retire in approx 6 years and then the plan is that we will all live in Lazio. Our plan was for me to obtain residence within the 18 months stipulated on the rogito and to start my residence earlier. However, our house in London is also solely in my name but with my partner owning half by deed of trust. He doesn't have any other property in his name. My questions are, if the house in Italy is my 'prima' casa' will I have to pay tax on profit from selling the London house should we decide to do this and also as I am a low earner and my tax level from rental income on the house is at 20% will I pay this through the Italian tax system which will mean it is more like 40% tax, or does the tax go to the country where the rented property is, and if so what happens if there's discrepancy in tax threshold levels between the two countries? There is this further business of the yearly tax on overseas properties which has recently come up but I think this has not even been found to comply with EU rules at the moment so I guess we'll worry about that one when we come to it! The house in the Uk is our only asset...no savings etc so it is obvious crucial we get this right as we can't afford to be flippant about it. If we decide to change our minds about me being resident is there any way of doing this without the awful fines I've read about...ie. change of circumstances through employment etc?Thanks. Any advice very much appreciated!