rachel68's activity

Thanks Annec!  I too think the world is a better place for passing on 'gleaned' information and sharing experiences when done in the spirit of making the world an better and easier place! Information can always be rejected but actually people giving real life examples of their experiences is SO helpful. If only to know what questions to ask a pro'!

Dear Hallam Family, Am I correct in thinking you have the option of choosing to which country to pay your rental income taxes then? If you are resident UK can you choose to pay all taxes from an overseas property rented out in Italy in your home country or Italy? Does this work in reverse? If you rented out a UK property but were resident in Italy to which country should taxes on rental income be paid or is there an option?

Sorry Ram you are quite right... I don't know what I was thinking of and I did actually understand you but just wrote out a response too quickly... So for final clarification we paid 3% ie residential rate but based on the purchase price not the lower catastal value. For those of you considering buying in Italy this means that is you need to be especially aware if you are paying purchase taxes at the non-res' rate (10%) on a property to restore which is classed as 'collabenti' as you can't count on your taxes being calculated on the catastal value so will get a really hefty purchase bill. Now here's another scenario though... within the 18 months in which we have committed to obtain residency we will have made one outbuilding habitable. What will happen, does anyone suppose, if we decide not to obtain residency but in the meantime have the property acatastoed to a residential dwelling...so it now has a catastal value on which to base the taxes? Presumably the tax office would still look back to the point at which we bought and not (in our favour) ask us to pay the difference between the new 10% non-res tax based on catastal rather than the 10% based on purchase price?

Thanks to the kind help of Ram I have now clarified why our purchase was not based on catastal values. Our farmhouse was classed as 'collabenti' and as such the purchase was not subject to residebt to resident 3% taxes alas. So a warning - if you are buying a building which has been in a state of disuse for many years it is worth seeing what it's current classification is!

I opened an account with this bank from the UK on the recomendation of an Italian friend living in the UK. They are really helpful and the charges seem very insignificant. I have a current account, linked savings account ATM card and credit card. The credit card is free as long as you buy something every month - I top up the mobile. Access is simple...it took a little while to get the cards through but in the end, because our italian house is uninhabitable they agreed to post them directly to me in Edinburgh. Whenever I am really stuck they also email back pretty quickly! Service with a smile I'd say. Incidentally you can also order a withdrawal of cash from them and then pick it up from any Post office with 4 days notice or from various banking counters they have nominated throughout Italy.

We too need to get some furniture to Northern Lazio (Rieti area) in late June/1st two weeks of July if anyone is interested in the same idea? Again, we don't need anything too big at all...probably 10 largish boxes and a few bits of very manageable furniture.  Our stuff could go at any point in June infact and sit in the shed until we are ready...Thanks!

I agree there seem to be many misconceptions...my architect mentioned something about it being so small as to be insignificant but when I brought this up with him but when I said I thought it was currently based  on up to €48,000 (don't quote me!)  of renovation workover 10 years as a tax deduction his ears pricked up. Does that mean €4800 off your tax bill each year? There are lots of forms to be filled in prior to starting work for you to be eligable so you have to be one step ahead. Has anyone gone down this route? I'd love to hear of real examples of this renovation 'reward' in action. personally I think it's a great incentive to preserve many crumbling old buildings like ours...nothing 'grand' but very much part of the landscape and history of our lovely community...and the 3 feet deep walls really do keep the heat out in the Summer without air-con!! They knew what they were doing 250 years ago!

Thanks so much Ram! V useful! So us musicians are not punished after all!! When my notary gets back I'll pass on anything useful...our sale was just 8 months ago so the information might be relevant for those about to take the plunge...

Thanks Phillide, Bizarre law regarding taxes and artists! Moreover I am 100% sure the notary did not ask me what my profession was at point of compravendita! So ironic as musicians are usually not the top paid people out there by a long shot! I have just written to the notary and asked her precisely to outline what level of taxes we have already paid and how much extra will be required if we do not take up residency within the 18 months. I wouldn't say we are trying to organise our life to the 'sole end' of minimising future tax liability at all but we cannot afford to be flippant about it as we have stuck out our necks financially rather more than we'd first planned! Our plan was clear 6 months ago- to start out new, long term life in Italy but if the 'residency' issue doesn't happen because of pending job considerations there start being so many knock on effects that we didn't have to consider before....anyway, fingers crossed with a bit of luck the plan will still happen and I'll be full time in Italy by next March!!   Thanks again for the advice. Much appreciated.

Thanks Ram. Looking back at our notary's bill I'm not sure precisely how she has arrived at the figures (and don't want to publish them on a public forum!). There's a breakdown of her fee + IVA, and 'anticipazioni' of terreno and casa. I know we paid 20% tax on the terreno for sure and that's noted in the atto. I think I should write to the notaio and ask her precisely which valuation she used to draw up the bill and what the difference would be should we get posted to Timbuktu and not end up being Italian residents within the 18 months so I'm prepared for all eventualities...