Brexit: Expats’ nightmare as Brits in Italy warn “taxes could rise by the thousands” | UK | New
Over the past month, there were numerous reports of Britons returning to their native UK, with Brexit causing hardship for those living there as expats. The new post-Brexit rules mean Britons who were able to enter and leave European countries on a whim will be limited to 90-day stays. Those wishing to register as residents in Spain will have to go through a number of bureaucratic hurdles to prove income of £ 2,000 per month – and £ 500 more for each dependent – as well as to acquire a driving license. Spanish. Some British nationals have not applied for a Spanish residence permit or have had their application rejected.
As a result, those who had been in Spain since the start of this year were forced to leave before March 31, as their legal status changed by immigrating without papers.
But expats in Italy could face other challenges, as a Financial Times report points out.
Those who have moved to Italy could see their rights increase to the property still held in the UK.
Daniel Shillito, a Milan-based wealth manager, said taxes could rise “by the thousands” because people will be responsible for property in the UK as third country nationals.
Previously calculated on 0.76% of a property’s UK council tax value, IVIE wealth tax will now be calculated on its purchase price or market value.
Mr Shillito added: “I have a client who is moving to Italy now, but who is selling his property in the UK for this reason.”
He said the property would now be liable for tax on its purchase price of £ 500,000 – not the municipal tax bracket, increasing the cost by £ 3,040.
For years, continental settlement meant that the Italian tax administration calculated these bills using the outdated UK tax system, which uses property valuations dating back to the early 1990s.
But the annual wealth tax will now be based on the current true market value of properties, now that Britain is no longer part of the EU.
A petition to pressure the UK government to negotiate post-Brexit equal rights for UK citizens owning property in EU countries to those automatically allocated to EU citizens staying in the UK has was launched last month in the hope that millions of British expats living in the block could stay for more than 90 consecutive days.
READ MORE: EU ‘won’t be kind to UK’ – City of London will be ruthless
Amid the chaos, a UK government spokesperson said: “The rights of UK nationals to continue to live, work and study in their EU member state are protected by law. Anyone legally residing before January 1, 2021 can stay but must register their residence.
“The UK government has carried out a public information campaign across Europe to inform UK nationals of the steps they may need to take to ensure their rights and access to services.
“This includes awareness events, social media and newspaper advertisements, and support through our network of embassies, high commissions and consulates.”