Welcome once more to the Overseas Guides Italy newsletter – from a fragrant village nestled in the Ligurian hills.

I say fragrant because now that everyone is busy harvesting grapes and making wine, there is a particular fragrance of must wafting through our cobbled lanes. On every corner, old men with friends and family are unloading buckets overflowing with fruit from their three-wheeler Apes and dumping the contents into oak barrels or cement containers, anything big enough to hold the harvest. For three days, the must is stirred in the morning and in the evening to prevent the top from drying out and rotting. After that, the juice is filtered off and the remaining pulp is pressed to make sure every last drop of wine is saved.

We harvested our own grapes yesterday, and back-breaking work it was too, as many of our more muscular and useful friends were either sick or unavailable for work. Still we managed to get the harvest in, and a couple of hours later the must was already bubbling away and warming the entire cellar as it fermented. In three days, when the liquid is drained off and placed in barrels to mature, and the remaining pulp is pressed in a wooden press called a ‘torchio’, the streets will ring to the sound of ‘clunk, clunk’ as the screws on the presses are slowly tightened by one half turn every minute and no quicker than that. In the old days, the men of the village would meet round these presses and play cards, drink wine and eat – of all things – sardines, while they slowly spent the day pressing the last liquid out of the grape pulp.

Nothing goes to waste: whatever is left is either thrown back onto the land to help fertilise the soil or – I am told and cannot verify officially the veracity of the next statement – used to make moonshine grappa (allegedly, of course)…

The harvest is continuing despite clouds lowering all over the place, but none of us dare complain, as two days ago we had the first rains after more than six weeks of solid sunshine and hot weather. When the storm broke, everybody was at their windows watching and cheering, you could practically hear the wild boar in the forest celebrating too. Luckily the storm did not interfere with one of my favourite religious observances in this village: the blessing of the automobiles. In a scene straight out of Father Ted, the local priest every year bestows holy water and a blessing on all the cars, vans and motorbikes parked around the church, driven there specially for the occasion.

With the kids now back at school, most of the tourists – both Italian and foreign – have gone back home and I am quite enjoying the peace and quiet as our town settles down and prepares for the autumn. After a busy summer of concerts and festivals, we are all partied out! But September is a wonderful time to be in Liguria: the sea is warm and the beaches are quiet, you can sunbathe without feeling like you’re sitting in a kiln, the restaurants and bars don’t need advance booking any more… I had my first proper day on the beach and swim in the sea this year on the 4th of September!

Amazingly, our local estate agent is a strict believer in summer holidays, and despite the fact that the town was heaving with possible foreign customers all summer, she refused to be persuaded otherwise and shut the office for three weeks. However, upon reopening for business this week, she has been pleasantly surprised to discover that many people are writing and phoning in, asking about buying properties. It looks like the worst of the housing market crisis may be over. One Australian client had even written an email into the office, making an offer on a rustico that he hadn’t even seen yet. To our estate agent’s credit, she refused to pass the offer on to the vendor, insisting that the Australian come over and see what he’s buying first.

This month’s feature has a look at (the lack of) health and social services in Italy…Then I chat about financial planning, give you a follow-up to the non-resident article of last month, and discuss a couple of people who may be of help to you.  A top tip and a bit about what is on in Italy in October completes this month’s newsletter.

May you have a warm, sunny, Italian autumn.

Kind regards,

Gianna

Gianna Williams
Italy Buying Guide
The Overseas Guides Company
Gianna@OverseasGuidesCompany.com

Many years ago, I watched a memorable TV programme where famous feminist Germaine Greer was being interviewed by, of all people, unreconstructed male chauvinist Jeremy Clarkson. They somehow got on to the subject of health care and social services, and Greer made an interesting comment, comparing the United Kingdom to Italy. She observed that the UK provides an outstanding level of state-funded care to the young and elderly precisely because there is no extended family support providing that care, while in Italy, where the family network is the primary source of support, there is no state network provided. In essence, it’s a chicken-and-egg situation: if the family will do it, the state won’t, and if the state won’t, then the family will have to do it.

I am often reminded of Greer’s observation when I consider daily life for people in my own little town. I have lived in Italy for seven years now and for all that time I have been registered with the local GP. Never once have I received a reminder – indeed any communication of any kind - to take any tests, vaccinations etc. My disabled father has never received a visit from social workers to check on his needs, my friends with new babies don’t believe me when I describe how new mothers in the UK are visited by midwives in the first few weeks after their babies’ birth to check on their progress and offer advice. Working parents have their work cut out for them to find nursery places for their children. There is one nursery place available for every 10 pre-school child who needs one.

It’s really a world away from the UK. Working parents are forced to depend on grandparents, the elderly are forced to depend on their children. Luckily for Italian families, it is often the case that grandparents, aunts, uncles and adult children live near each other, if not in the same building, and so can provide each other with the support that the state does not offer.

And there is something to be said for this. Italian elderly men and women rarely consider themselves to be useless to society – quite the contrary, they are very much involved in the lives of their children and grandchildren. Indeed, their role is absolutely essential, and those pensioners who are healthy and vigorous enough seem to thrive in this situation. It puts a lot of pressure on the elderly. However, as a result, they do not seem to be as marginalised as they are in British society. It would really be unthinkable for an Italian family to hire a babysitter or childminder when a grandparent is close by.

Lack of workforce mobility has also played a part in creating this system. People in the UK are used to moving around as work and careers take them from one city to another. As a consequence, people rarely have the luxury of help from elderly parents or brothers and sisters nearby.

In Italy, it is still quite common to live your entire life in the same street. Those workers who in the past moved from the south to jobs in the north have generally brought their extended families with them, and so the family network of support has followed them. The frail and elderly that don’t have family on hand have found another solution, employing illegal immigrants as carers, known by the odd term ‘colfs’ (short for collaboratori familiari, family assistants, in other words). The practice has become so widespread that when the government announced tough new measures against illegal immigrants recently, a special get-out clause was created for colfs, whereby families were asked to ‘regularise’ their colf’s legal position by declaring their existence and paying a one-off fee of 500 euros so that they could remain in the country. By the time the deadline came round, the government had received more than 46,000 such declarations.

For all the shortcomings of the Italian health and social system, I wonder if it is this family network, as well as a general quality of life, which accounts for the surprising figures posted on the World Health Organisation website. In the UK, income per capita is higher, and government spending on health care per capita is higher, and yet the population in the UK has a higher infant mortality rate, a higher number of maternal deaths during childbirth, a lower life expectancy and a higher risk of dying between the ages of 15 and 60 than Italy! Then again, knowing Italy as I do, I can’t help wondering if the secret is that we’re just better at cooking the books…

Please remember that if the Overseas Guides Company Resource Centre can assist you at any time with queries, recommendations etc you have only to ask.  Just pick up the phone and call 0207 898 0549 or fill in the brief form below and we would be delighted to help you.

http://www.ItalyBuyingGuide.com/resources.htm

There’s something about sterling…

by Smart Currency’s Charles Purdy.

So what is the problem with sterling? Since the start of August we have had significant sterling depreciation against most currencies. Clearly we have had major problems following the collapse of Northern Rock, the Royal Bank of Scotland and HBOS [Halifax Bank of Scotland]. But so have the US and the Eurozone had problems with their financial system and, like us, continue to do so.

Therefore why is sterling the pariah? The problems for sterling are numerous. The UK economy was very dependent on the finance sector which suffered most in the credit crunch. We also suffer from a balance of payments deficit which means that flows of funds out of the country exceeds inward flows - never good long term. The US$ and the € have the benefit of  the former being viewed as the world’s reserve currency and a safe haven asset.  The latter is a very major world currency used as a common currency by a large number of countries, one of which is the world’s greatest exporter, namely Germany. We also have a Central Bank who seems to lack the fire power or the efficiency of the European Central Bank who seem to be able to make large funds available to its banks at a moments notice.

But the major problem is the Government’s budget deficit - which existed prior to the credit crunch - and it’s huge explosion resulting in record Government borrowing.  Also there is no political will or cogent plan to cut it prior to the next general election. Until we see this plan and people believe in it sterling will have no “fans” internationally. And until we see investors start to view sterling positively again it is very unlikely we will see a significant appreciation in sterling, certainly not against the euro.

In fact some commentators see us returning to parity with the £1=€1 by the end of the year. If this does happen, your €’s would cost you 10% more than they would at the moment. Do you want this to happen?

If not, you need to contact Smart Currency immediately – call on 0207 898 0549 or freephone 08081 630 102and have a chat about ways you can avoid this. 

To read the latest on Sterling and the Euro go to: http://www.ItalyBuyingGuide.com/Currency240909.htm

View up-to-date currency reports Rate movement alerts and much more... Go to: http://twitter.com/SmartCurrency

Why overseas property buyers lose money...
...and how you can avoid it!

This 10-page educational report outlines:

• Case Study: When Property Buyer, Mr Reed, Purchased an Overseas Property, he Made Three Mistakes that Cost Him £10,256...learn how you can avoid them...
  
  
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• Ways to safeguard yourself against adverse fluctuations in exchange rates (or in other words, helping you to keep your money in your pocket)
  
  
• The entire process of moving money from the UK to any overseas location, so that you're armed with all the knowledge you need to make intelligent decisions about your money
  
  
• How you can ultimately save £100’s and £1000’s so that you have ample money to buy furniture and white goods…
  
  
• More case studies of people that lost money due to foreign currency strengthening against the pound, so that you learn from other peoples mistakes rather than your own!
  

And just a couple remarks about the report from our readers...

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"I have read and absorbed the information in the stories outlining the mistakes which the uninitiated can make when transferring currency. It is very illuminating and essential that any one,like myself, who is in the process of buying an overseas property should be aware of. I would go so far as to say that every agent selling overseas properties should be compelled to advise their prospective purchasers that it is paramount that they use a currency expert such as yourselves. Regards, Eric Thomas"

To get a copy of the report at no charge go to: http://www.smartcurrencyexchange.com/freereport.htm

To get a Better-than-Bank rate go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call Carl on 08081 630 102 freephone.

Financial planning

Financial Planning Week, which took place from 7th to the 13th September, was an information campaign run by the Institute of Financial Planning (IFP).  The main aim of the campaign was to assist the ordinary ‘man in the street’ - the likes of you and me - to deal with the day to day financial concerns that we all experience.

What they particularly want to do is to suggest easy steps that we all can take to make our money really work for us. 

I clicked on their 10 simple tips – have a look at: http://www.financialplanningweek.org.uk/
and yes, they are simple - but they are still utterly essential in order to look after your assets.

In brief, they are:

1. Identify your goals
2. Know what you are worth
3. Budgeting
4. Debts
5. Stash some cash
6. Save!
7. Get yourself protected
8. Retirement plans
9. Investing – not just for the rich
10. Spread the word

These are all logical steps but often we just don’t concentrate on actually getting the answers to these all important questions, nor do we take steps to ensure our financial independence in time.  ‘Tomorrow is another day’ often seems to be the feeling, and yet these are matters that should be addressed as early as possible in order to give yourself time to plan and also for investments to mature. 

Here at the Overseas Guides Company we have a guide to moving pension overseas and I have also sourced a financial specialist who is dedicated to assisting our readers with all aspects of financial planning, in all countries. I would be very happy to put you in touch with a professional company that other guide readers have used and highly recommended.  Please call me on 0207 898 0549 if you would like to chat about this or fill in the brief form at below and I will call to discuss this further

http://www.ItalyBuyingGuide.com/resources.htm

Price: from €127,500

Zambrone Villas is an exclusive resort of 12 semi-detached villas, situated in the charming hills of Zambrone.  Here you will find one of the best stretches of coast in Calabria, with long sandy beaches.

The gated development has a stunning sea view and each villa has private gardens and a view of the Aeolian Islands. The villas have two bedrooms, a large lounge with kitchen area, one bathroom and external space. There are 15-20 sq m panoramic terraces and various size gardens where to relax and enjoy al fresco dining plus there is a large communal swimming pool. Each villa has air conditioning fitted.
Some of the villas are key-ready while others are in the process of being completed.

If you are interested in pursuing this further, or would like to discuss any other property requirements, please phone on 0207 898 0549 or fill in the brief form at:
http://www.ItalyBuyingGuide.com/property.htm

I had input from one of our newsletter readers about the non-resident article that was in last month’s newsletter.  He points out that the Sunday Times article was not referring to people emigrating. I am popping in his reply for you:

It was specifically with respect to "Wealthy people planning to move abroad for part of the year to beat the 50% top rate of tax"

To put émigrés minds at rest, put simply if you move to a country that is not deemed a "Tax Haven" such as some Caribbean islands, then you are taxed on all your worldly income by that country and not by the UK. If you spend 183 days or more resident in that country in that country's tax year, then you will be taxed there and not here. If you have dividend income from UK companies then UK tax (currently at 10%) will be deducted at source but allowed against you tax in your country of residence (assuming a double taxation agreement exists). There might be slight anomalies during the first year because the UK tax year runs to 5th April each year, whereas most other countries run to the 31st December, however the double taxation agreement should cover that.

The possible difficulties arise if you do not spend 183 days or more per year in a single foreign country, For then the question will arise as to which country should tax you since you are no longer resident in a single country for the majority of the tax year. Some countries will claim the right to tax you if your main home is in their country. The UK has the notion of "Ordinary Residence", a term not defined in statute, but for at least 40 years to my knowledge the test has basically been if you spend 90 days or more per tax year in the UK or maintain a property you can use in the UK.

There should be no problems for a genuine émigré, nor for those permanently living abroad if their countries have a double taxation agreement with the UK. However the efforts of all tax administrations to catch those who wish to avoid all tax is likely to mean that you have to establish residence in a country with a double taxation agreement with the UK if you wish to avoid all avoidable UK taxes. If you have no assets in the UK the UK authorities are unlikely to pursue unless you spend more than 183 days in the UK in a UK tax year. As an example if you have substantial UK pension income and you move to a tax haven (e.g.. Turks and Cacaos Islands) your pension will continue to be taxed at source in the UK. If you move to a county with a double taxation agreement with the UK the UK authorities will allow the pension to be paid gross and your country of residence levy the appropriate tax.

Probably the biggest loophole plugged in recent years concerned capital gains tax. The UK can only tax you if you are resident in the UK for 183 days or more in the tax year, so people wishing to for instance sell assets (typical real estate or shares on which the was a substantial capital gain would move abroad for a year and sell the asset once abroad thereby avoiding what was then 40% capital gains tax. They would then move back to the UK the following year. The law has now changed in that HMRC can now charge you capital gains tax in respect of earlier years when you were not resident (i.e 183 days) in the UK if you were "ordinarily resident" which whilst not precisely defined it is generally accepted that you are not "ordinarily resident" if you did not have a property in the UK which you could stay in and did not visit the UK for more than 90 days a year in all of the last 4 years, but the matter could be muddied if you are not tax resident in any other jurisdiction.

I am sure that this is massively helpful and I am always grateful for any input that you may wish to share with other readers. Just pick up the phone and call 0207 898 0549 or fill in the brief form at:
http://www.ItalyBuyingGuide.com/resources.htm

Please contact the Overseas Guides Company Resource Centre if you would like to be put in touch with an IFA (Independent Financial Advisor) – it’s always a good idea to know exactly what you can expect in your new country. Just phone on 0207 898 0549 or fill in the short form at:
http://www.ItalyBuyingGuide.com/resources.htm

Professional Companies to help you

I am always on the lookout to find professional people for you – people who will not only do the job, but do it in an ethical, friendly and professional manner. Here are two companies that have proved really popular with guide readers. 

As an owner - or a potential owner - of a home overseas, you will already understand the importance of protecting your valuable asset. Until now it has been hard to find an insurer that really does what you want them to, that provides comprehensive protection and the flexibility you need to cover your home abroad.  Luckily I have found someone who does all this – and more – they actually insure properties in more than 40 countries!  Whether you are actually living there or not, or even if you have let it out, their policies are designed to cover every eventuality.

If you would like more information on this please click on the link below or contact me at 0207 898 0549 and let’s have a chat. Last month alone no fewer than 17 people clicked on our insurance link and purchased insurance through Intasure – not a bad recommendation in one month alone!

Intasure

Holiday lettings
holidaylettings.co.uk is the perfect site, both to find a place to stay locally while you look for your new home abroad and to advertise your property if you decide to rent it out. 

If you are renting out, a great facility is that you can check on how your advert is performing by clicking on the view enquiries section of your home management page. From here you can see the number of hits (visits to your page) you have had over the past 30 days and the number of enquiries you have had over the course of a year. It really is a well thought out and intensely helpful website that should maximise the number of people looking to rent your property.

One of my associates has managed to get very special deals for Guide Readers who are new advertisers on the holidaylettings.co.uk website.  If you enter 45749 as the promotional code, you can get 15 months of advertising (of your property) for the price of 12 months.  Or just click on the link and the code will appear automatically.

Holiday Lettings

Top Tip

Cheap flights from the UK are opening the market up for Brits looking for second and holiday homes. Also better train links within Italy causes house prices to rise further in the city.

Bear this in mind when you are buying:  if you are planning on renting your property out, the more accessible it is the better. And if you hear that new transport links are going to be introduced, then it’s a good time to be buying there. 

What’s on in Italy in October

10th October is Verdi’s birthday and around this time the Verdi Festival comes to life: the days vibrate with music, opera and readings from the masterpieces of literature which inspired the opera libretti.  The Festival is set in theatres, opera-houses and the most picturesque locations in Parma - the land of Verdi.

The Alba White Truffle Festival takes place on weekends throughout October in the Piedmont town of Alba.   This is one of the biggest truffle festivals in Italy. One of the events is a donkey race!  Some of the biggest truffle festivals in Piedmont, Tuscany, Umbria, Le Marche, and Emilia Romagna regions during are October and November.

A gastronomic fair takes plane on the first two weekends of October and is held in Certaldo Alto, Tuscany. Look for other truffle and chestnut festivals in small towns in October and November, especially in northern and central Italy.

Maschera di Ferro, a festival that celebrates the legend of the man in the iron mask, takes place in the Piedmont region the first weekend of October.

Goodbye for now...

I hope the next month will be a good one for you.  I am here at any time if you need my help: just email me on the email address below or pick up the phone and call 0207 898 0549 and the Resource Centre will happily assist you.

Ciao,

Gianna.

Gianna Williams
Italy Buying Guide
The Overseas Guides Company
Gianna@OverseasGuidesCompany.com