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Posted Thu, 28 Mar 2024 22:37:45 GMT by Davide Di Domenico
Hello I am a double citizen of Italy and UK, and I would like to rent my house in Italy on AirBNB/Booking. I have a full time permanent job here in the UK, and that's my only income to pay rent and bills. I want to rent the property to get an extra income each month, but I want to avoid at all costs double-taxation from both countries. I want to pay the taxes for my income here in the UK, how can I do that? Do I have to register for self assessment? Also I'm wondering if my PAYE status will affect the taxation of my income from aboard. What I mean is, if my foreign income is under 12570£ a year, do I have to pay 20% on that? Now I'm earning 34.000£ a year from my job, so I'm over the personal allowance already. I got more questions but these are the most important for now, thank you very much to everyone who can help me to understand better how it works.
Posted Wed, 03 Apr 2024 15:13:28 GMT by HMRC Admin 2

Article 6 of the tax treaty that exists between the UK and Italy allows the country where the property is located, the right to tax income and capital gains arising from the property. The treaty also allows the UK to tax the income and gains as well, but only after Italy.

UK/Italy double taxation convention

As a UK resident, you would be required to register for Self Assessment and declare the gross rental income and expenses incurred in a tax return (SA100) and on supplementary page SA106.  

Check how to register for Self Assessment

You can claim a tax credit of up to 100% of the tax paid in Italy against the property, so that you do not have to pay the same tax twice (double taxation). 

Thank you.

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