Taxes

[jupiter]

Can anyone give me an indication to what the tax implications are of renting property out during the holiday period. Can taxes be paid solely in the UK ?

[Ciapolin]

I guess it depends on whether the Italian authorities know about the income or not! (We are of course talking about a nation which makes tax dodging an art!).

If you are receiving the money in the UK and are resident there, I think (but you need to check this) you are subject to UK taxes.

Of course whilst the taxes in Italy are high, if you have renovated your property (and have receipts) you can put the costs of renovation against any income which may mean no tax bill for some time.

I am not an expert and suggest you prbably need to speak to an accountant in the UK, or ragioniere in Italy. I have also found the Inland Revenue to be helpful in the past (yes, really!).

[memes]

Hi I have recently bought a large property in Le Marche which was let out by the previous owners and we inherited quite a few bookings for this year as well as adding a few of our own through Holiday rentals and Owners direct.
I'm very interested in the tax implications too - I have heard that there is a reciprocal arrangement with the Italian tax authorities so that anything paid in one country on income from the house can be offset against a tax demand from the other country. I'm assuming that I can also offset all the running costs against tax. We are in the Uk though hope to move out there one day so at the moment are paying for house management, pool cleaning, etc and also spent quite a lot on new sheets, glasses, pots, pans, microwaves, DVD players etc. Can these be offset too?
Would really appreciate any advice on what can and can't be offset and whether people do admit to all of their lettings (as if!) and if anyone recommends particular accountants that specialise in this..
Delighted to have found this site - have been trying to work out how to do it on my own and am really grateful for the experience of others..
Thanks

memes

[willemijn]

you will have to be carefull in one way, and that is that you might need a special permit or your house needs to fit certain criteria for the Italian Authorities to allow you to rent it out for the holiday.

I am afraid I do not know the details and possibly in your case all is within the norm, but my experience in Italy is that when you ask an Italian his/her advise, they will all reply to keep it unknown!

[BrendanGFC]

If you go on the Forums of

www.italymag.co.uk

you will see a couple of interesting threads about taxes relating to rental income.