We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Couple of tax questions on working abroad

I'm planning to move to Italy in the next few months, but will continue to work remotely for my employer in the UK. My question is what do I do about tax? Currently I'm on PAYE and also submit a self-assessment form due to some freelance work. Do I just continue with this or should I stop paying UK tax and register in Italy instead?

Secondly, am renting out my flat in the UK for an amount that will just about cover the mortgage, and plan to rent a flat in Italy. Would I need to declare and pay tax on the rental income?

Appreciate any advice from the forum - thanks.

Comments

  • p00hsticks
    p00hsticks Posts: 14,538 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The rental income is taxable. However, you can offset the mortgage interest and some other expenses against the rental income, but not any repayment of the capital.
  • (and you can't offset the cost of your flat in italy either!)

    if you keep working for your employer you would probably carry on as normal

    will you be working for someone in italy aswell?
  • tyllwyd
    tyllwyd Posts: 5,496 Forumite
    You need to look at the rules about residence and domicile - way too complicated for me to understand, but you need to be clear about your status. And also you need to understand the tax rules in Italy as well, because they won't be the same as the UK rules. I would expect there to be a double taxation treaty in place so you wouldn't have to pay tax on the same income twice, but I think you should get advice from an accountant with UK/Italy knowledge asap to make sure everything is set up correctly from the start.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.