IVIE on UK property owned by 'management company'?

View previous topic View next topic Go down

IVIE on UK property owned by 'management company'?

Post by rachel68 on Wed Jun 26, 2013 7:52 am

I have a flat in the UK in a building of which I am the sole freeholder and am in the process of selling half of the freehold to the owner of the flat above. We have the option of setting up a 'management company' to own the flats and us both being directors and granting ourselves long leases. My question is as follows....would this make any difference (as I am currently an Italian resident) to my IVIE liability on this flat which is currently rented out? Reading the last few posts on IVIE it may well be I'm not liable anyway as although I took residency in Italy back in Feb 26th I am jointly between UK and Italy right now and waiting for a decision whether a job move will in fact send us to France by September so I'm not sure I'll be over the 183 days and have no income from Italy. Many thanks!

rachel68
Elder

Posts : 44
Join date : 2013-06-12

Back to top Go down

Re: IVIE on UK property owned by 'management company'?

Post by Admin on Wed Jun 26, 2013 8:59 am

Well, you would be liable to pay income tax in Italy on any income from the Management Company in the form of tax on the dividends. The Italian tax authority may also decide that your company is really based in Italy and therefore the company must also pay tax in Italy. It is a complicated area and there are sme things you can do to protect yourself from this happening but you should pay for some proper advice before setting the company up.

I would say is it worth it? For the amount you would save in IVIE you will probably spend the same in extra accountants fees each year for doing the books of the 'company'.

Only you will know if it is financially worth it and for that you will need some good advice from an accountant used to dealing with both Italian and UK tax as they will be able to model some scenarios to see which is most cost effective.
avatar
Admin
Admin

Location : Italy
Posts : 698
Join date : 2013-05-16

Back to top Go down

Re: IVIE on UK property owned by 'management company'?

Post by TAB_Flags on Tue Feb 11, 2014 8:53 pm

rachel68 wrote:I have a flat in the UK in a building of which I am the sole freeholder and am in the process of selling half of the freehold to the owner of the flat above. We have the option of setting up a 'management company' to own the flats and us both being directors and granting ourselves long leases. My question is as follows....would this make any difference (as I am currently an Italian resident) to my IVIE liability on this flat which is currently rented out? Reading the last few posts on IVIE it may well be I'm not liable anyway as although I took residency in Italy back in Feb 26th I am jointly between UK and Italy right now and waiting for a decision whether a job move will in fact send us to France by September so I'm not sure I'll be over the 183 days and have no income from Italy. Many thanks!

I would stick to the UK flat, as here our market is skyrocketing at the moment. But I would change your address in italy as a holiday home Smile

You can swim to france from UK Wink

_________________
Hello
Please Visit!

TAB_Flags
Elder

Posts : 31
Join date : 2014-02-03

Back to top Go down

Re: IVIE on UK property owned by 'management company'?

Post by modicasa on Wed Feb 12, 2014 6:12 am

If you moved your residency (ie did the visit to the anagrafe) then you are resident whether you are here for 183 days or not.  You have declared yourself to be resident by doing the pratica.  And on that basis you are eligible.  And under the new law, if you bring that money into Italy you would also be eligible for the 20% hit on its import as it derives from financial activity!

modicasa
Elder

Location : Sicily
Posts : 530
Join date : 2013-05-20

http://www.modicasa.com

Back to top Go down

Re: IVIE on UK property owned by 'management company'?

Post by Admin on Wed Feb 12, 2014 7:21 am

That is true but as it is a witholding tax, it means when you submit your Italian tax return this 20% you pay when bringing in the money will be deducted from the tax due on your dividends so you don't pay twice. You would have to pay IVAFE on the value of your holding in the management company annually
avatar
Admin
Admin

Location : Italy
Posts : 698
Join date : 2013-05-16

Back to top Go down

Re: IVIE on UK property owned by 'management company'?

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum