Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 24 Feb 2023 00:46:26 GMT by Riccardo
Hi, I am a UK tax resident I own a property in Italy that I rent privately, for which I pay property tax in the country (Italy). I'd like to know if: - Do I need to declare my rental income if I don't transfer the money to the UK? - Do I need to declare my rental income if I transfer my money to the UK? - Has Brexit affected the UK / Italy double taxation agreement? Many thanks, Kind regards
Posted Mon, 27 Feb 2023 11:58:15 GMT by HMRC Admin 32

As a UK tax resident you need to declare your worldwide income in the UK. you can then claim relief for the tax paid in Italy to reduce any UK tax on that income.

Further guidance is at:

Tax on foreign income

Thank you.
Posted Fri, 03 Mar 2023 13:57:44 GMT by Riccardo
WarningThis post is currently being moderated and will be visible when it has been approved by a HMRC moderator.
Posted Tue, 07 Mar 2023 14:47:30 GMT by HMRC Admin 32

They may have different circumstances. Your answer is based on the question you asked. Please refer to guidance in the link provided in the orignal answer.

Thank you.
Posted Thu, 23 Mar 2023 18:48:37 GMT by Vincenzo D'Onofrio
Hi, there is the Italy-UK Double Taxation Convention that in ARTICLE 6 states: "Income from immovable property - Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.” According to Italian accountants, because of this convention between UK and Italy there is nothing to pay or declare in UK for rental income or capital gain from the house sold, since it has already been taxed in Italy. Is it actually so? because of this convention is there a special procedure with Italy on rental income from foreign properties (Italy)? Does it need to be declared in self assessment or not? Many thanks.
Posted Tue, 28 Mar 2023 09:42:28 GMT by HMRC Admin 17

Article 6 covers income/gains from property that cannot be moved. 

It advises that if you are resident in the UK, then any income/gains arising in Italy are firstly taxable in Italy and then the.

 You need report and pay any tax liability arisintg in Italy. 

In addition, you need to declare the income/gains in pounds sterling in your self assessment tax return. 

You need to show the income on Sa106, gains on SA108 and either or both on SA106. 

You are entitile to claim a foreign tax credit relief of up to 100% of the foreign tax paid. 

This claim is made on SA106.

Thank you.

You must be signed in to post in this forum.