Taxes on Italian property if already own a share of a property in the Uk

casamia123

Just a quick question... Im British and my ex husband is Italian. We have a mortgage on a property here in the UK but he only owns 1% .

He now wants to move back to Italy and buy a property there for himself. Hes also transferring his residency back to Italy.

He is asking to be released from our mortgage here because (he says) otherwise he will have to pay additional tax on a property in Italy, if he buys or even if he only rents one.

Is this true?
 

My issue is that  I will not be accepted for a mortgage by myself as my income is too low and I claim UC (he has always worked away. So it was impossible for me to find a good job thatvworkedbaround the children).

 I live in the house with our children, so it isn't rented out to earn any income.Its our home.

 We still have 20 years left on the mortgage, which is due for renewal in Dec 2027. So still a lot to pay. I only just manage to pay the £980 each month (plus bills) as it is!

Him being on the mortgage was the deal we agreed in order to be able to buy a property in the first place. My family put up the deposit and I have funded all of the renovations. So we all consider it to be my property but without him I wont get the mortgage renewed.

Any advice appreciated 😊

MeteredOut

It's not inconceivable that a country may apply an increased property tax if the person already owns a property abroad. Have you attempted to find out if that is the case? Have you asked him to point you to details of that?

Does this help: https://taxing.it/ivie-ivafe-wealth-tax-on-foreign-property/

If that does apply, I'd assume it would be a fairly nominal tax on the 1% of the house he owns. He'd be right that it applies even if he rents.

But, if you want to find out for sure, you really need someone who knows Italian tax laws.


Edit: this states tax due under 200 Euro need not be paid. Or if the Italian resident is paying Council Tax on the property (which is probably not the case here)

https://www.capecchilegal.com/the-ivie-tax/

silvercar

He is asking to be released from our mortgage here because (he says) otherwise he will have to pay additional tax on a property in Italy, if he buys or even if he only rents one.

He can ask, if you can’t do  then you can’t.  He will have to find another way. Incidentally, what is he offering you to be removed from the obligation to pay the mortgage?

user1977

casamia123 said:

He is asking to be released from our mortgage here because (he says) otherwise he will have to pay additional tax on a property in Italy, if he buys or even if he only rents one.

Is this true?

You'd be better asking somewhere Italian if you wanted to check that. But it sounds reasonably likely given the reverse situation would apply (i.e. you pay more stamp duty on purchases in the UK if you own other property, whether in the UK or elsewhere).