I work with qualified tax advisers to ensure integrated advice covering both the legal and the tax dimensions of your property strategy in Italy.
On Acquisition
On acquisition, different taxes apply depending on the type of property: the land transfer tax (imposta di registro) is generally assessed on the cadastral value, with reduced rates for primary residences and agricultural use. When purchasing new-build properties from a developer, VAT (IVA) applies instead. In addition, mortgage and cadastral registration fees (imposta ipotecaria e catastale) are due.
Ongoing Charges
As the owner of a property in Italy, ongoing charges apply: IMU (Imposta Municipale Unica), the municipal property tax, is calculated on the basis of the cadastral value and the type of use. Added to this are TASI (municipal service tax for public facilities) and TARI (waste collection charge). These levies vary considerably from municipality to municipality.
Rental Income
Rental income is in principle subject to income tax (IRPEF). Owners may choose between regular taxation and the cedolare secca – a flat-rate substitute tax – which is particularly attractive for residential lettings. Commercial letting may be subject to VAT (IVA).
Disposal
Sales within certain time limits or for commercial purposes can trigger capital gains tax. Inheritances and gifts are subject to inheritance and gift tax, the amount of which depends on the degree of kinship, the cadastral value and any applicable allowances.
Cross-Border
For non-residents, the challenge lies in coordinating Italian tax rules with the law of the home country and the relevant double taxation treaties. Close coordination with tax experts in both countries prevents conflicting obligations and unnecessary tax burdens.