Dual residency UK-Italy
Thread poster: Claire Titchmarsh
Claire Titchmarsh
Claire Titchmarsh  Identity Verified
Italy
Local time: 11:43
Member (2013)
Italian to English
+ ...
Jan 14, 2014

Hi there, just wondering if any other freelancers/people trading as limited companies have got dual residency in both countries? Is it (as I imagine) a complete bureaucratic nightmare?

Not sure if this topic has been dealt with before so will also post in the Italian forum

Thanks

Claire


 
Tom in London
Tom in London
United Kingdom
Local time: 10:43
Member (2008)
Italian to English
dual Jan 14, 2014

Claire Titchmarsh wrote:

Hi there, just wondering if any other freelancers/people trading as limited companies have got dual residency in both countries? Is it (as I imagine) a complete bureaucratic nightmare?

Not sure if this topic has been dealt with before so will also post in the Italian forum

Thanks

Claire


If you're registered in Italy as a resident there are various things you can do (e.g. buying a car) but you would probably be liable for various kinds of local tax in the Comune where you're registered (and they do send a vigile urbano to check that you really are living at the address you gave).

You don't need to register in the UK to be a resident.

However so far as carrying on a business activity (e.g. as a translator) is concerned, then I think you would need to be resident in one or the other, and not both. Of which the preferable of the two would be the UK. This of course does not prevent you from providing your services to anyone in any other country, including Italy, from the UK as a UK taxpayer.

[Edited at 2014-01-14 13:44 GMT]


 
Jo Macdonald
Jo Macdonald  Identity Verified
Spain
Local time: 11:43
Member (2005)
Italian to English
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Hi Claire Jan 14, 2014

You can be resident in many places but it's illegal because you can then have several tax identities.

You can legally be resident in one country and have your domicile (live) in another. You pay tax in the country you are resident in.

If you have a limited company in the country you aren't resident in things could get complicated and you may get taxed by both countries especially if you are really a one-man company/freelance translator.

Your docs, driver
... See more
You can be resident in many places but it's illegal because you can then have several tax identities.

You can legally be resident in one country and have your domicile (live) in another. You pay tax in the country you are resident in.

If you have a limited company in the country you aren't resident in things could get complicated and you may get taxed by both countries especially if you are really a one-man company/freelance translator.

Your docs, driver's license, vehicle registration, etc. should be from the country of residence but the cops may start hassling you if they see you around for any length of time because I think after 6 months you should change the number plate.

When I moved to Spain I became a resident here and it took the Italians about 3 years to get around to cancelling my status as resident in Italy so during this period I was resident in both countries. This was legit, doing all the paperwork, applying to the Aire for Italian citizens overseas etc.
It was actually a bureaucratic nightmare to cancel my residency in Italy.

The law says you should be resident in the EEC in the country you stay 6 months plus 1 day in I think, but no one keeps count of the days where you are.

If you want to be resident in the UK and work/live in Italy methinks the best way is to become a resident in GB and apply for a GB Vat number, invoice with that wherever you are and pay tax in GB. Then get a brit car and go to Italy, rent/buy a place and keep the brit number plates. I think your Italian codice fiscale will remain the same, but close any P.Iva you may have when you emigrate to GB.

[Edited at 2014-01-14 14:04 GMT]
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Giovanni Guarnieri MITI, MIL
Giovanni Guarnieri MITI, MIL  Identity Verified
United Kingdom
Local time: 10:43
Member (2004)
English to Italian
Not an expert... Jan 14, 2014

but you if are resident in two countries, you might end up paying taxes in both... I would be careful... Just google "dual residency"...

 
Vincenzo Di Maso
Vincenzo Di Maso  Identity Verified
Portugal
Local time: 10:43
Member (2009)
English to Italian
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In Italy Jan 14, 2014

Giovanni Guarnieri MITI, MIL wrote:

but you if are resident in two countries, you might end up paying taxes in both... I would be careful... Just google "dual residency"...

Yep, in Italy you can have one "residenza" and more than one "domicilio".
When I had to change my residence, it was not actually a hassle, but communications were not well forwarded.
Dual residence should be illegal.


 
Claire Titchmarsh
Claire Titchmarsh  Identity Verified
Italy
Local time: 11:43
Member (2013)
Italian to English
+ ...
TOPIC STARTER
Thanks Jan 14, 2014

for all the replies.

I moved back to the UK this year and have a UK Ltd co. which all my invoices are issued through. I have spoken to my accountant and meet the UK residency criteria for tax purposes so no problems there.

The car is less of a problem as I'll probably just rent one. Driving backwards and forwards every month is just not an option, it costs a fortune and takes far too much time.

My real concern was about renting a house in my own name if I
... See more
for all the replies.

I moved back to the UK this year and have a UK Ltd co. which all my invoices are issued through. I have spoken to my accountant and meet the UK residency criteria for tax purposes so no problems there.

The car is less of a problem as I'll probably just rent one. Driving backwards and forwards every month is just not an option, it costs a fortune and takes far too much time.

My real concern was about renting a house in my own name if I am not technically resident in Italy, so I wanted to know if anybody actually does have official residence in both countries, or knows of someone who does. A previous poster suggested I might have to be "domiciled" in Italy but resident in the UK. I'm just a bit confused as to how that works in practice.
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Jo Macdonald
Jo Macdonald  Identity Verified
Spain
Local time: 11:43
Member (2005)
Italian to English
+ ...
Residence and domicile Jan 14, 2014

Where you're resident is where you're registered for tax purposes, where you invoice and pay tax.
Where you're domiciled is where you live.

Don't think you'll have any problems in Italy renting a house if you're not a resident there, all you need is a taxpayer's code (codice fiscale) and possibly an Italian bank account and/or guarantee unless you can pay a few months up front.


 
Maryline David
Maryline David  Identity Verified
Local time: 10:43
English to French
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Agree with all comments above and... Jan 14, 2014

I think the only issue might be that if you are domiciled in Italy (eg renting a house in your name, etc), tax officials there might want you to give them evidence that you are not resident there, so that, from your point of view, you are not taxed twice, and from their point of view, they can be sure you are not trying to evade the tex system. A simple letter from HMRC should do the job (at least, I know from someone who is in the same situation between UK and Spain, that it is sufficient there... See more
I think the only issue might be that if you are domiciled in Italy (eg renting a house in your name, etc), tax officials there might want you to give them evidence that you are not resident there, so that, from your point of view, you are not taxed twice, and from their point of view, they can be sure you are not trying to evade the tex system. A simple letter from HMRC should do the job (at least, I know from someone who is in the same situation between UK and Spain, that it is sufficient there...)Collapse


 
EL_isa
EL_isa
United Kingdom
Local time: 10:43
English to Italian
+ ...
Casual UK-based translator invoicing Italian companies (=prestazione occasionale) Jun 10, 2015

Good Evening, I am writing here as the title for this thread is the most similar to my situation, even though not quite the same.
I am actually "residente" in Italy, even though I have been living in the UK for almost two years. As I haven't a long term (=more than 1year) job contract, I can't be registered at the AIRE. I have talked twice to HMRC and a British friend about the procedures for casual work performed as a self-employed in the UK. The procedure is like the Italian one, except
... See more
Good Evening, I am writing here as the title for this thread is the most similar to my situation, even though not quite the same.
I am actually "residente" in Italy, even though I have been living in the UK for almost two years. As I haven't a long term (=more than 1year) job contract, I can't be registered at the AIRE. I have talked twice to HMRC and a British friend about the procedures for casual work performed as a self-employed in the UK. The procedure is like the Italian one, except for the following differences: 1) instead of the "notula di pagamento", in the UK you must produce an actual invoice - you just write your NINo and "VAT not registered" 2) you don't have to write any English law article specification on your invoice 3) the "20% ritenuta d'acconto" is not applied 4) before producing any invoice, you must phone the HMRC and register as a self-employed on the phone.

So I registered as a self-employed and started invoicing to UK customers without problems - very little work overall.

But what if the customer is Italian? I have just got an Italian customer (from Italy) who for unknown reasons has already made their wire transfer to my UK bank account, in GBP - and now they are asking for my invoice of course. I guess that, even if I produced my simple UK invoice, this Italian company should declare something to the Italian State, possibly paying the "ritenuta d'acconto = withholding tax" (=20% of the total). But I don't think I could state the 20% ritenuta d'acconto on the English invoice, as it doesn't exist here, plus the company doesn't pay it to the English State, but to the Italian one....


Cosa devo fare?!

Grazie mille a tutti!
Buona serata



[Edited at 2015-06-10 19:52 GMT]
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Dual residency UK-Italy






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