Italian Tax Help

[Karen4370]

Hi, as Airbnb are withholding 21% tax directly from Italian listings, I understand these deductions are paid directly to the Revenue Agency, I presume they are using the Fiscal Code for this payment. I have just one rental property and I live in the UK but I have expenses for the management of the property, internet, electricity, tari, condo fees for the parks and pool, surely I can offset my expenses from the withholding tax? Any advice would be highly 😊

Many Thanks

Karen

[Mike-And-Jane0]

@Karen4370 I am sure your accountant will help but I would have thought you do your Italian tax return as normal and then you will possibly get a refund from the taxman there. After that you can do your English tax return and the dual tax treaty will mean you only pay tax in England if the tax rate is higher than in Italy.

[Karen4370]

@Mike-And-Jane0 Thank you so much for replying 😊 Unfortunately, I don't have an accountant in Italy or here in the UK. I work Full Time here on PAYE & as you are allowed an income renting a room in your home up to a certain threshold, meant I never went over, so never really needed it. My apartment in Italy is 'inheritance' from my divorce 😃 and as it costs me to keep it, I rent it mainly during the summer. My sister has been helping me keep my book keeping up to date, should I ever need to produce anything here in the UK or Italy, however, with the introduction of the mandatory Airbnb witholding tax in Italy, it is barely worth my while once I've paid all the expenses. 

Do you have any advice on the best way to find an Italian Accountant?

Best Regards

Karen

[Elisa]

Hi @Karen4370 😊,

thank you for asking this question here!

I'm tagging a few hosts from Italy who might be able to help you: @Andrea6232, @Alessandro1278, @Angela1056 and @Vincenzo8.

I also recommend asking this question in the 👉 Italian Community Center.

[Angela1056]

Ciao @Karen4370 , if you rent a property in Italy you have to declare the related income to the Revenue Agency. For short term rentals you are allowed to pay a flat tax for the revenue (cedolare secca of 21%) and in this case the 21% withheld tax from Airbnb will cover the related tax but you are not allowed to deduct any expenses. 
If you want to deduct your expenses you have to add the revenue from the rental to your personal income and the 21% withheld tax will be deducted from the taxes you have to pay.

I’m not an accountant and my answer is based on my tax experience for my short term rental in Italy. 

[Karen4370]

Thank you @Angela1056 😊

As I don't have any other personal income in Italy I guess the 'Tax Treaty' will come into play as my income is taxed here in the UK 🤔

It would be good to get the advise of an Accountant/Tax expert, if you have any recommendations

Many Thanks

Karen

[Angela1056]

Ciao @Karen4370 I’m sorry but I can’t help you in this case.