For those of you who don’t know, RW is the section of the Italian tax return which requires you to declare all assets held overseas, both property and investments. The penalties for failing to declare are extremely punitive, resulting in extreme cases to confiscation of the property itself.

Attentive readers will recall that as of January this year, the property tax ICI was replaced by a new tax, IMU. One difference is that the reduced rate of IMU (basically that for the prima casa) will apply “to only one property unit”.

Alert for all those resident in Italy with property or financial interests overseas. The Italian tax authorities have introduced two new taxes on overseas assets: one is on property, so is bound to catch any foreign nationals who maintain properties “back home”.

Has it always been your dream to live and work in Italy? Are you worried about what you hear of the Italian tax system? Well it’s not all bad news.

For any of you who have not made an Italian tax return (and should have) the Italian tax authorities are allowing you until 29th December to file a late return. There is a small fine (25 euro) plus interest to pay on the tax due.

As of Monday 6th December 2011, the limit of cash that can change hands in any transaction was reduced to € 1000. This is the third reduction of the limit in little over 18 months.

IMU – nothing to do with Rod Hull – just our old friend ICI under a new name. The change comes into force from January 2012. This municipal tax will now be due on all houses, including main residences, prima casa, holiday homes etc.. That means if you own any property in Italy you will now need to pay the new IMU.