Home U.K Expat nightmare: Britons in Italy warned 'taxes could rise by thousands'

Expat nightmare: Britons in Italy warned 'taxes could rise by thousands'

0


There were numerous reports last month of Britons returning to their native UK as Brexit leads to difficulties for those living there as expats. New rules post-Brexit mean Britons who were once able to enter and leave European countries on a whim will be limited to stays of 90 days. Those wishing to register as residents in Spain will have to jump through a number of bureaucratic hoops to prove earnings of £2,000 a month — and £500 more for each dependent — as well as acquire Spanish driving licences. Some British nationals failed to apply for Spanish residency documents or had their applications rejected.

As a result, those who have been in Spain since the beginning of this year were forced to leave before March 31, as their legal status changed to an undocumented immigrant.

But expats in Italy could face other challenges, as highlighted by a Financial Times report.

Those who have moved to a Italy could see their duties increase on the property still owned in the UK.

Daniel Shillito, a wealth manager based in Milan said taxes could raise “by the thousands” because people will be liable for property in the UK as third-country nationals.

Previously calculated on 0.76 percent of the council tax valuation of a UK property, the IVIE wealth tax will now be calculated on its purchase price or market valuation.

Mr Shillito added: “I have a client who is moving to Italy now, but selling their UK property due to this.”

He said that the property would now be liable for tax on its purchase price of £500,000 — not the council tax band, raising the cost by £3,040.

For years the continental rule book meant the Italian tax authority calculated these bills using Britain’s outdated council tax system, which uses property valuations dating back to the early 1990s.

But the annual wealth tax will now be based on the properties’ true, modern-day market value, now that Britain is no longer part of the EU.

A petition to lobby the UK Government to negotiate post-Brexit equal rights for UK citizens with properties in EU countries to those automatically awarded to EU citizens staying in the UK was launched last month in the hope millions of British expats living in the bloc could stay for longer than 90 days in a row.

READ MORE: EU ‘won’t be nice to UK’ – City of London to be shown no mercy

Amid the chaos, a UK Government spokesperson said: “The rights of UK nationals to continue living, working and studying in their EU Member State are protected by law. Anyone legally resident before January 1, 2021, can stay but should register their residence.

“The UK Government has been running a public information campaign across Europe to inform UK nationals about the actions they may need to take to secure their rights and access to services.

“This includes outreach events, adverts on social media and in newspapers, and support through our network of Embassies, High Commissions and Consulates.”



LEAVE A REPLY

Please enter your comment!
Please enter your name here