The following question & answer was posted on Thursday November 2, 2006.
I am due to retire from the forces late next year and am thinking of moving to Italy. When I leave I will get a lump sum, which would be tax-free here in the UK. Where would I stand on this in Italy? Are there any tax surprises lurking that would pounce on me unexpectedly?
Emma Bird provided the following answer:
The tax bands are about to go up in Italy and, if you are resident in Italy, you will be taxed on any personal income or assets that you have there. However, you can live in Italy but still be ordinarily resident in the UK, and if you spend more than three or four months over a four-year period in the UK, you will be classed as a tax resident.
Whether you will pay tax in Italy also depends on whether or not you will have any other income, so you should discuss this with an accountant versed in UK and Italian law.
Learn more about Emma Bird
Return to the main Ask An Expert page