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Tax Robin
Tax Robin, Tax Preparer
Category: UK Tax
Satisfied Customers: 15044
Experience:  15 years experience with H & R Block in International Tax Law
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I'm buying a house in Italy Seborga, I need to know if I put it d

Customer Question

I'm buying a house in Italy Seborga, I need to know if I put it down as my first residence do I pay income tax in Italy even though I work and live in Uk, I have my own business in the uk . I will not be earning any money in Italy. Just owning a house there. What does 183 days rule mean ? Also if I register it as a second home would I be liable for any tax after the initial property tax of 9%? Trying to save tax on the purchase ( it's an old house )
Submitted: 1 year ago.
Category: UK Tax
Expert:  Tax Robin replied 1 year ago.
Hello and thank you for posting your question.
What you are asking about is residency for tax purposes. The 183 days refers to how long you have to be resident (living in or have Italy as your center of your life)in Italy before all your income is taxable in Italy.
Live in Italy less than 183 consecutive days over a 12-month period? You pay tax only on the income you earned in Italy.
Foreigners living in Italy will be classified as Resident if:
- for 183 days of a calendar year they were registered with the registry office of the Registry Office (Ufficio Anagrafe), or
- for 183 days of a calendar year they had their main place of business or residence in Italy
- for 183 days of a calendar year they had their centre of vital interest (i.e. family) in Italy
Non-residents are only taxed on income and gains arising in Italy, compared to worldwide income and gains for residents.
Just owning a house there is not enough to make you a tax resident.
Property tax is different and that is base don the ownership of the property.
Property tax ( imposta comunale sugli immobili/ICI) is paid by everyone who owns property or land in Italy, whether resident or non-resident.
Customer: replied 1 year ago.

If I register the property as my first residence on completion of sale, does that mean I am officially a resident in Italy and I have to pay income taxes in Italy even though I live and work in Uk? sorry to be dim, i just want total clarity, as I am getting confused with advice I've been given. Thank you

( I do now understand the 183 day rule)

Expert:  Tax Robin replied 1 year ago.
If you register with Anagrafe della Popolazione Residente (the register of the Italian Resident Population) then yes you could open yourself to total taxation in Italy.
An individual will be considered to be an Italian resident for tax purposes, subject to double taxation treaty provisions, if one of the following conditions is met.
The individual is registered in the Office of Records of the Resident Population for the greater part of the tax year (183 days or more).
The individual stays for the greater part of the tax year in the territory of the state (183 days or more).
The individual has his/her center of business or economic interests in Italy for the greater part of the tax year (183 days or more).
It is enough that only one of the three aforementioned conditions is met, even without continuity, for the greater part of the tax year, to qualify the individual as an Italian tax resident.
Expert:  Tax Robin replied 1 year ago.
Hi Donna,
Did the above clarify your position on residency?
Expert:  Tax Robin replied 1 year ago.
Wanted to touch base with you and make sure all worked out.

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