Rotary Club Bikrampur

What Is the Property Tax Rate in Italy

All leases and rentals of Italian real estate (including those related to rustic funds and fixed by passive VAT) must be registered, regardless of their amount and if they last more than 30 days a year. For example, taxpayers who do not opt for the flat-rate taxation system must pay the registration tax. Depending on the rental agreement or rent, this is due as follows: In the case of residential real estate, the value at which the following tax rates are to be applied can be either the transaction value (TV) or the cadastral value (CV). The resume is usually much lower than the TV. For trade and land, tax rates still apply to television. Notary fees depend on a number of parameters, including the value of the transaction. The purchase of real estate is to a large extent supervised by a notary. The notary performs more tasks than those usually associated with notaries in other countries. In Italy, they are responsible for finding legal titles and checking whether the property is free of defaults or debts. Each property receives an official Valore katastale based on an assessment by the city council or municipality. It is created based on the size, location and quality of the property and also varies depending on whether the property is used as a primary residence or as a second home.

In Italy, there is a public social security system covering sickness, maternity, unemployment, retirement, disability and family allowances. This system is financed by employees` and employers` contributions, calculated as a percentage of gross remuneration. These contributions represent a relatively high surtax on labour costs and are therefore of paramount importance in determining operating costs. The employer`s share of social security contributions is between 26 and 32% of gross salary, while employees contribute about 10%. There are similar percentages for executives, although contributions can be made through different types of specialized funds. In Italy, it is compulsory to pay a social security contribution to the National Institute of Accidents at Work (INAIL) to cover all occupational risks. This insurance covers employees against accidents and occupational diseases and its costs vary from 0.4 to 3% of the gross salary. Italy has its fair share of turnover tax and property tax.

It is also likely that a number of other fees come into play when buying or selling real estate. You will also be taxed on the rental value of your home, even if you do not rent it. This tax is based on the assessed value of the property and is usually very low. When you rent the property, you must report the income you receive. On the other hand, you can deduct the expenses you had in the maintenance of the property. The tax is usually between 19% and 46%. Some regular bills in Italy are mostly paid by mail, which includes maintenance taxes on your property. Check with your local bank branch to see if online payments or direct debits are possible. The Valore catastal is usually lower than the actual sale price or the price of the market value of the property.

The foreign buyer who intends to take advantage of the tax reduction for the “first house” must move into the property within 18 months of signing the deed of sale. Flying to Italy has never been easier due to competition from low-cost airlines, so your property should be easily accessible wherever your investment is. The country`s strong transportation infrastructure and modern systems make it a natural option for savvy investors looking for a solid market with growth rates of up to 25% in some regions. The tax rate applicable to the resale of a real estate unit owned by a foreign company is 33% of net profit. Again, if the property was purchased more than 5 years before the sale, no CGT is due. It should be noted that properties classified as luxury homes or castles of cadastral category A/9 have a higher tax rate. The best exchange rate you get in Italy is from banks. However, probably the easiest way to make transactions is to use credit or debit cards. These, along with your personal identification number (PIN), will give you access to ATMs (or ATMs in Italian). All major cards are accepted and ATMs can be found throughout Italy, even in small towns.

Cards can also be used for cash advances at the counter at banks and for payment at most hotels, restaurants, gas stations and some shops. For all these transactions, you pay a fee of 1.5%. In summary, we can say that the Stability Act for 2014 of 1. In January 2014, it introduced a revision of the Italian property tax, which aims to strengthen the link between the tax burden and the amount received in the form of local services, to strengthen the full possibility for municipalities to change tax rates, exemptions and installations, as well as to reduce public procurement until the new suspension. It abolished the IMU for principal residences and some similar cases, as well as the TARES component for indivisible services. At the same time, it established the new tribute of the IUC (single municipal tax) levied on those who own or hold title or own property in local or uncovered areas that are used in any way, divided into two components: the IMU, on assets payable by the owner of buildings other than principal residences; a component for services, which in turn is divided into Tribute for Indivisible Services (TASI) and the Waste Tax (TARI) to finance the costs of waste collection and disposal. All information contained in this publication is aggregated by Studio Associato consulenza legale e tributaria, the Italian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity based on the Italian Income Tax Act of 1986 and subsequent amendments, circulars and resolutions; the Agenzia delle Entrate site; the Italian Constitution of 1946; Law No. 335 of 1995 and circulars and resolutions of the INPS, website of the INPS, the Italian Social Security Administration. The rules for how much stamp duty imposta di registro you have to pay when buying real estate in Italy are a little more complicated.

If you buy a house in Italy from a company subject to VAT, stamp duty is always a lump sum of 200 euros. The D.L. 262 (with the amendments introduced in the conversion of the Law on Emergency Decrees) requires that any property inherited or received as a gift be subject to tax (with the exception of the individual exceptions described below). In the case of inherited property, the heirs are required to pay the mortgage and property taxes (rates of 2 and 1 per cent, respectively). If the inherited property falls under the “main residence”, the mortgage and cadastral taxes are set at 200 euros. .