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Hello again from a typically hot and sunny Liguria in August! It’s at this time of the year that you are thankful that you live in the hills off the coast, and enjoy those fewer 4 degrees that in winter you wish you had. I’m also greatly appreciating how cool old town houses remain in the heat – life is very comfortable in a stone, vaulted, 16th century building surrounded by medieval alleyways that remain in shade right until you reach the main road – then the August sun hits you… Italy closes down completely during August – all the factories, businesses and offices are shut. Our own estate agency here is now closed until the 7th of September! Italians take their summer holidays very seriously. August 15th is what people here call the ‘clu’ or the apex of the holiday season. In the old days, August 15th – called Ferragosto and also a bank holiday as it is the Assumption of the Virgin Mary and a big religious festival – was a terrible time to travel. Factory workers were always given either the first two weeks or the second two weeks in August off and the 15th was the changeover day. Those southerners working in northern factories who’d headed south to see their families in the first two weeks came back, while those who’d remained behind set off from the north heading south. The sheer number of people heading in both directions caused a nationwide traffic jam every year. These days many of those southerners have moved their families north, and there are more factories in the south, so the problem isn’t as bad as it used to be. However August the 15th remains a day when you would do well to leave your car where it is and relax at home. Speaking of cars, a word of warning! Blue parking bays are charged – you need to buy a ticket to park there, either from a machine or from a local tobacconist. White parking bays are free. If there is no street signage, you mustn’t park there! A British family was caught out by this the other day – in England, a lack of any lines on the road means you can park, here it’s the opposite. This British family was lucky. Rather than receive a fine, they were given a ‘preavviso’, or a warning. Another British family was much less fortunate recently – their French-licence plated car was towed away for the same offence. The policeman I met afterwards told me that their system is to fine Italian cars and simply tow away foreign cars because it is so much harder to get a fine paid from abroad. So be warned! With the tourist season now in full swing, a national row recently broke out over a tourist brochure. A Spanish tour operator had published a brochure for its Sicilian hotels in English, Italian and German and the first sentence caused an almighty scandal here: “[Sicily], the triangle in the Mediterranean, cradle of the Cosa Nostra.” Italians were shocked by the fact that the Mafia could be a selling point, an attraction. It is the equivalent of saying: Come to the USA, where the Klu Klux Klan was founded! The tour operator was highly embarrassed (interestingly enough, the Italian translation of the same text made no mention of the Mafia) and recalled those copies of the offending brochure that had not yet been distributed. And while on this thorny subject, for those of you who would really like to understand what organised crime in Italy actually is, I highly recommend reading Roberto Saviano’s Gomorrah, now translated into English. This 28-year-old author has had to flee the country following the publication of this exposé. Italy has its dark side, there is no question of that. As a foreigner, your perception of the mafia, particularly if you live in the north, will be minimal. What you may perceive is a general attitude of making exceptions to rules for friends and family, a way of getting round legal obstacles, a ‘ducking and diving’ philosophy of life. Speaking for myself, I love Italy, warts and all. It’s like your love for a spouse. You can’t just love them because they’re attractive or witty, you have to love them when they’re cranky, sick or just boring. The Norwegians, Swedes, Danes, Belgians and Brits I’ve been speaking to this summer in Italy seem to love Italy in this way, knowing its faults, laughing at its inconsistencies, loving the sheer intensity of colours, of life here, loving its people. Have a wonderful summer – I hope you will get to spend some of it in Italy! Gianna Gianna Williams |
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Finding work in ItalyFinding work in Italy is not as easy as you would think. Italians have a hard enough time finding work, let alone a foreigner who arrives without friends or family to help him find work through the grapevine. A lot of work seems to be found in exactly this way: an uncle, or a friend of a friend, will recommend you for a job and bingo, you’re in. It’s called being raccomandato. But what do you do if you don’t have that network to help you? When I first moved to Italy, I was scuppered right from the beginning. In the UK, the first thing I’d do when moving to a new town was have a look at the newspapers or walk into a couple of employment agencies. In my part of Italy, when I moved here seven years ago, no one had heard of employment agencies, and the only jobs advertised in local papers were those for cooks, waiters or hotel staff. The local ‘ufficio di collocamento’ is the Italian equivalent of a job centre, and, again, concentrates on blue-collar jobs, jobs for young students etc. Indeed, a general problem in Italian employment is that the majority of jobs are seasonal, driven by summer – or winter – tourism in hotels, restaurants, bars, beach resorts, ski slopes etc. That’s all very well if you have more than one job on the go or if you are a student, but what about people who want stable employment and a prospect of a career? This situation, thankfully, is changing and the Internet has been the driving force behind the change. There are several interesting websites now that advertise jobs in all sectors, in industrial, commercial and creative fields. You can have a look at www.kijiji.it. Having now entered the Italian tax system, I am starting to get to grips with how it works, thanks to a very kindly and compassionate Italian accountant (a commercialista) who takes pity on my ignorance and has realised that it’s best to just get on and do everything for me rather than hoping that I’ll understand what she’s doing. In my case, as a freelance journalist with a fixed base in Italy, I can pay Italian tax in Italy and UK tax in the UK, thanks to the “Convention between the UK and the Italian Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income”, article 14. In terms of the Italian tax system, as long as you make less than 30,000 euros a year (which is certainly my case for the foreseeable future!), the tax situation is quite simple. You register for a VAT number (numero IVA, not to be confused with your codice fiscale which everyone has to have to do or buy anything in Italy) and then issue invoices quoting that number and taking 20% off your invoice as a ‘ritenuta d’acconto’. This 20% is paid by the employer. Then at the end of the year, the government decides how much you’ve overpaid and gives you, hopefully, a rebate. This sounds very exciting, and indeed, I was very excited last month when my kindly commercialista announced that I would be getting 800 euros tax back for the 2008 tax year. Fabulous, I said! Just what I need with all the renovation expenses I’ve had to pay out! This is when the kindly commercialista realised the profound ignorance I live in, sat me down and quietly explained that I would probably see those 800 euros in about two years… Apparently, those who overpaid their tax in 2006 have just started receiving their rebates now. I highly recommend the services of kindly commercialiste – I speak fluent Italian but would not dare try to tackle the tax system on my own. For example, the other day I received a letter from the Agenzia delle Entrate – the tax office – printed in enormous red, capital letters that just the look of it made you think it was a summons or a prison sentence. I went cold and could hardly read it. With trembling fingers, I dialled the number of my kindly commercialista, who sighed and told me it was simply a letter asking what bank account I wanted future VAT money to be paid out, or into, from. I rest my case. Another fundamental thing to keep in mind is that it is generally the rule that invoices are paid in 60 days. It is not completely uncommon for invoices to be paid in 90 days, and I have often heard of invoices being paid after a year. The European Union was close to making a resolution requiring 30 days across Europe recently, but unfortunately this did not go through, and so the system remains as it is for the moment. Such is the life of a freelancer. However if you are lucky enough to get a job with a company, you will have the pleasant surprise of a ‘tredicesima’: a 13th pay slip which is paid out as a bonus to the majority of employees at the end of the year. Happy job hunting and please contact me if I can help in any way. Just phone me or my colleagues on 0207 898 0549 or fill in the brief form at: http://www.ItalyBuyingGuide.com/resources.htm |
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How Smart differs…A couple of days ago I was asked a very simple question by someone who was thinking of buying property abroad: “How do currency companies differ?” He went on to add: “They all seem the same…they seem to offer the same benefits when I speak to them about transferring money abroad. How do I know which one to choose?” Actually, the people at Smart Currency Exchange are often asked this…and their reply is that there are enormous differences between Smart Currency Exchange and any other exchange company, differences that could make a world of difference to you. Firstly, Smart Currency Exchange is the only currency company in the UK that does not pay their traders commission – they get a regular salary. That fact alone will allow you peace of mind that you’re not in the hands of someone who is trying to make the most money they possibly can out of you. Secondly, they do not spend thousands of pounds on marketing. Generally, the word is spread via the Internet and by word of mouth, from one contented client to their friends and relations. This means that Smart is able to save vast sums on advertising and this is reflected in the exchange rates they are able to pass on to you, the client. When you phone Smart Currency Exchange, you will actually speak to REAL PEOPLE - people who can explain the whys and wherefores of transferring currency abroad and all about currency exchange rates. So please, don’t hesitate to pick up that phone and ask questions about this – Smart’s currency experts will have heard them all before and will be delighted to help you. You will immediately speak to someone who can clearly and concisely explain the whole process to you. If you would like to contact Smart Currency, please phone 0207 898 0541 or go to: http://www.smartCurrencyExchange.com/smartsquotation.htm To read the latest market information on Sterling and the Euro go to: http://www.ItalyBuyingGuide.com/Currency270809.htm Smart sometimes feel that they have ‘friends’ rather than clients…and Ken Smith is a case in point. This is what he had to say: I would like this opportunity to offer my thanks to Smart Currency Exchange. I have been dealing with you for some time now, as I am having a property built abroad. I obviously use your services to transfer funds overseas. Your facilities being much quicker, easier and vastly cheaper than using my own bank. In fact I have recommended a couple of friends that have also used Smart Currency Exchange (names available if required), and likewise are extremely pleased with your services. I have found all the numerous staff that I have personally dealt with to be polite, helpful and full of good advice, a service not very often seen these days but nonetheless extremely welcome. I would particularly like to give my thanks to James who I deal with on a regular basis. I have always found him to be particularly friendly and efficient dealing with any issues I have with prompt attention. Once again thanks to all
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Casale Casale il Verdicchio, Apiro
On offer here is a recently restored 4-bedroom country farmhouse with a partially restored guest house (converted barn), sitting at the head of a valley in the Verdicchio wine area. It is situated at 500m above sea level with dramatic views across the valley, vineyards and the Apennines Mountains. On a clear day there is a panoramic view all the way to the sea. The main building, on two floors, is approx 240 sq m with four bedrooms and four bathrooms. It has been totally restored with high quality materials; it has retained many of its original features such as wooden beamed ceilings but also has the modern convenience of double glazed windows, broadband connection and central heating. The whole property sits in 2,000 sq m of land, close to a good, quiet country road, making it a tranquil place to relax and unwind in. It is ideal for a permanent or a holiday home as well as for a B&B, which is its current function.
Accessibility is via Ancona Airport, a mere 40 minutes drive. Price: €280,000, with guest house €390,000 and fill in the short form – I will contact you.
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Non-resident status in the UKI have just read the most complicated article in the Sunday Times regarding non-resident status for those UK citizens who decide to live abroad. It seems to me that that nobody really seems to have a handle on this contentious subject – perhaps not even the tax man! I am going to try and lay this out as clearly as I can, from what I have gathered…and hope that this helps you. Right, the bottom line is, as you may guess, that the tax man is going to be scrutinising non-resident status very carefully from now on in expectation of a mass exodus by those lucky folk hoping to escape next year’s 50% tax rate. Once you have been non-resident for 3 years you do not pay UK income tax on overseas income. And if you are non-resident for more than 5 years you do not pay any capital gains tax (CGT) on your UK or overseas gains. Previously the ruling was that you were considered a resident if you spent more than 90 days a year in the UK. In most European countries it is 183 day a year - and indeed you can spend 183 days in any given year in the UK, but only if it is 90 days per year over 4 years. In other words, if you spend 183 days in one year, you only have 90 x 4 = 360. Then less your 183 leaves 177 for the other 3 years. See what I mean about complicated? There’s more: they have now decided that the 90 day a year includes any time spent in transit. Why? Search me…And how to track this? Anybody’s guess! Also, continuing connections with the country will now be taken into account too. Individuals must now prove an intention to leave the country permanently or indefinitely…and this may include such things as terminating membership of clubs, not regularly attending social events such as Ascot (yes, you read that correctly) or not keeping a car in the UK. Visits to grandchildren etc. will come off your 90 day per year limit. There are dispensations if someone in your family is terminally ill – you may be able to exceed your average of 90 days over 4 years, but NOT by more than the 183 days at a time without risking your non-resident status. A trifle harsh I would have thought… The one thing I was very certain of, having read this article and trying to clarify it, is that it is imperative that you find expert help from the outset in order to make sure that you do not fall foul of the tax man. I think that you would be well advised to think about all the financial implications well before you leave the UK; perish the thought, but should anything happen to you while living abroad, you do not want your partner or your heirs to be faced with endless financial problems at an already traumatic time. I do have experts who come highly recommended by other Italy Property Guide readers, so do contact me if I can help here: just fill in the form at:
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A new Guide for youWe at the Guides Company have a wonderful new Emigration Guide. Kim sent out an email two weeks ago asking if some readers would review what she’s created and we were simply overwhelmed by the response. It will be going out for sale in October, but I wondered if you would like to take a peek at it and tell me what you think? It has over 10 tick lists and masses of information on everything from finance, children, removals, property, things to cancel, documents to sort out and so on. Even if you have bought a Country Guide this is an absolute must-have and will really ease your burden in the relocation process. Indeed, we think that with this Guide we have done all the thinking for you…all that you need to do is have fun once you arrive in the country you love! To get a sneak preview of the Guide just cut and paste the below email address into a blank email and hit ‘send.’ By doing so, you’ll get an automated email sent back to you with a link to download the guide. You can also go to emigrationguide.com and enter your details. Please note, however, that by doing this you'll get added to an email list and will receive a series of emails regarding emigration from me. By sending the blank email, you'll just get access to the new Guide. This Guide will be selling for £12.97 shortly so - if you can - let me know if you feel that it provides value for money. Also, I would really appreciate any feedback you have: any general tips or things that you found to be useful to you as you planned your move would be welcome. Enjoy!
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Top Tip: more about Capital Gains Tax I hope I am not whittering (or should that be ‘witter’ – neither are in the dictionary incidentally!) on too much about this – but then I ask myself – can one have too much information on how to save money…? It’s about that old bugbear, Capital Gains Tax in the UK. I may have mentioned it a while back, but here is a little more detail. Evidently, anyone who has sold a property that was not their main home since April 2003 may be able to claim a rebate on Capital Gains Tax (CGT), provided that it has been let out for a period. That period is clearly defined and you need to check this out carefully. Any gain made on a second home sale is usually liable for CGT, but rental holiday lets are now subject to both Business Asset Taper relief AND Entrepreneur’s Relief. It is estimated that this could reduce your CGT to 10 percent: since April 2008 it has been 18 percent and prior to that was as high as 40 percent! Frankly, my feelings on this are that it is a job for the experts – a really clued up IFA (Independent Financial Advisor) may well be able to save you quite a bit if money here. If you need any help here please give me a call – 0207 898 0549 – and I can point you in the direction of a really good IFA that has helped a number of our Guide readers.
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I would I love to know how you are getting on. Did you spend any time in Italy this lovely hot summer? Have you looked at any properties? I am here to help so please don’t hesitate to contact me if there are any questions at all about Italy and the property market. Until then, best wishes for a happy month ahead. Kind regards, Gianna.
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