Your Dreams...Our Realty (TM)

HOME

PROPERTY SEARCH

OUR SERVICES

COMPANY INFORMATION

Let us be your guide International Locations The Knightsbridge Team

The Knightsbridge Team Our Management Team

Affiliations Career Opportunities News

REFER A FRIEND

Contacts

US TOLLFREE

flag USA 1800 583 2779

UK FREEPHONE

flag UK 0800 032 5039

Refer a Friend

TAX INFORMATION

As owner of your new property, you should be aware of the various taxes and tax implications of Italy. The information contained in this document relates only to people not resident for tax purposes in Italy. A person is resident for tax purposes if he is physically present in Italy for more than 182 days in any calendar year, his main home is in Italy, and/or he is in business or employed in Italy.

The Italian Authority responsible for the collection of taxes is the "intendenza di finanza" (intendenza). This is organised on a local basis. In each comune there is an office of intendenza. In Italy it is your responsibility to obtain a tax form (usually, but not always, from the local tobacconist or newspaper shop!). It is your responsibility to complete the form and to calculate the amount of taxes that you owe to the State. It is then your responsibility to submit the form to the tax office together with the appropriate amount of tax payable.

The taxes and implications you need to be aware of are as follows :

TAXES PAYABLE ON THE TRANSFER OF PROPERTY

Imposto de Registro (Registration Tax)
This is a tax payable when you purchase either agricultural land or a house, apartment or building plot. It varies from 3 - 10% of the declared value of the property as expressed in the Rogito (Deed of Conveyance. For non residents buying a holiday home it is usually 7%. This has led people to be tempted to under-declare the value of the property. Though this practice was and is widespread, IT IS A SERIOUS MISTAKE . Severe penalties are payable in respect of under declarations which, in addition, can lead to monumental Capital Gains Tax headaches at a later date, as the declared value on your purchase is the base line used by Authorities when assessing the Capital Gain you make on the disposal of the property.
Imposta sul Valore Aggiunto (VAT)
This is charged at 10% on all new property except luxury homes, which bear 20%. It is usually included in the advertised price of the property.
Notary's Fees
These vary according to the value of the property, the number of pages in the documents prepared and various other factors. They would normally be about £1,500 for a £70,000 house.

PROPERTY TAXES

Imposto municipale (Local Taxes)
This is the main local property tax affecting owners of properties in Italy . The amount of the tax is calculated by reference to the "rendita catastrale" (official value of the property) registered in respect of all properties in Italy . The official values were, until recently, very very low. They are now rapidly rising, pursuant to a policy of the Italian Government that will result in the official values approaching the real value of the property. In general terms, local taxes will cost less than taxes on a similar property in the UK .
Tassas Comunales
Some Municipalities raise additional taxation in relation to the services that they supply to people in the area. These may include rubbish collection, cleaning of the streets and beaches etc. Municipalities also have the right to raise a charge for the use of a vehicle in their area. Not all do so. The amounts of these charges are not generally high.

PERSONAL TAXES

Wealth Tax
There is no wealth tax in Italy .
Imposto sul Reddito delle Persone Fisiche (IRPF) (Income Tax )
A person not resident in Italy for tax purposes must still make an annual declaration for income tax. The Italian Authorities are only concerned with the income you derive from activities in Italy , not your world-wide income. Typical examples of this will be interest on any money you have on deposit with a Italian bank or income you derive from letting your apartment or house. If you let your house you will have to declare the income received. You will be able to set off certain expenses against that income - repairs, management expenses, local taxes etc. The residue is taxed at between 19% and 46%, depending on the amount. For most people it will be about 30%. As this income is part of your world wide income it will have to be declared to the British Tax Authorities but double taxation relief does exist as a result of a Treaty between the two countries. You do not need to file a tax declaration if you have no income in Italy .
Notional Income Tax
There is also a tax to pay upon the notional rental value of your house, even if you do not actually rent it out. This is based on the official rendita catastrale (rateable value). It is normally small.
Capital Gain Taxes
In most cases there is no longer any capital gains tax on the sale of land and buildings in Italy .
Taxes Payable on Death
In most countries the State likes to take a chunk of your assets when you die. How much they will receive depends largely on how well you plan your affairs. In Italy they have recently abolished Inheritance Tax for most people. Many think this is a political gimmick and that the policy will be reversed after the next change of government. As a result we are also explaining the system that existed before the abolition - on the basis that if tax is reintroduced it is likely to be something similar. In Italy there is no automatic inheritance by a wife or other joint owner of the deceased joint owner's share in any property. If it is left by will or on intestacy to the other joint owner, the gift will be taxable. The amount of tax paid is determined partly by the size of the whole estate - as in this country - but also partly by the size of each individual inheritance. The tax is progressive - the more you inherit, the higher the rate of tax you will have to pay. Near relatives pay tax at a lower rate than more distant relatives who in turn pay less tax than total strangers. Rates vary from 0 - 60%. Near relatives are also entitled to receive a sum tax-free. Spouses and children about £80,000 each, brothers and sisters about £33,000. More distant relatives and strangers are not. An estate of, say, £200,000 can therefore produce a large tax bill if it is all left to one person - especially a non relative - and little or no tax bill if it is divided amongst a number of beneficiaries who are close relatives. Putting all of these things together, there is great scope for minimising tax payable on death. In general terms, dividing your assets between your husband/wife and children tends to produce the lowest tax bills. Penalties are imposed if the tax due is not paid within 6 months of the date of death. In many cases where sizeable tax payments are going to be a problem it is possible to dispose of the assets during the owners lifetime much more cheaply than in his death.
VAT
Most transactions in Italy involve the payment of VAT. The normal rates are 4% and 10%. Transactions involving luxury items can carry a rate of 20%.
Codice Fiscale (Tax Code)
This is an identification number for use in Italy . If you have dealings within Italy - even if you are not full time or tax resident - you are required to have a number. This is obtained from your local tax office. However tempting it may be not to bother obtaining this number you will find that it will cause you great inconvenience in the future if you do not have one.

Please Note : It is impossible to give tax advice without detailed knowledge of your personal circumstances. You should, therefore, treat this document as no more than background reading designed to give you some idea of the structure of the tax system in Italy. The Italian tax system in more complex than most and taxes in Italy seem to change more than in any other country we deal with - and to be subject to a wide range of interpretation! You will need to seek up to date advice.

FEATURED PROPERTIES

QUICK CONTACT FORM

News

Knightsbridge Investment group Launches Panama website

Knightsbridge Investment Group are proud to launch there new website dedicated to Panama Real Estate

New Law Gives Additional Boost to Already Booming Real Estate Market

By Knightsbridge Investment Group.

'Law 41', recently passed by Panama's National Assembly, give's a further boost to the already booming real estate market in the Republic of Panama.

Panama-US Trade Accord to go ahead

Panama's Free Trade Agreement with the United States is expected to be signed this month say US government officials, with subsequent approval by Congress.

An ecological microcosm of the Americas

The Dominican Republic still has areas that are raw and unconquered – a spectrum of topographies that are unmatched in the West Indies.
more

The Dominican Republic, the NUMBER ONE tourism destination in the Caribbean.

The Dominican Republic has become the NUMBER ONE tourism destination in the Caribbean. It now attracts a large number of tourists that used to visit other countries in the region.
more

LAW 305-68

Most of the foreign investment in the Dominican Republic has focused upon the beach tourism sector.
more

Setting up a Panamanian Corporation

Many people who invest in Panamanian real estate choose to register their land or property under the name of a Panamanian corporation
more

International property gets cheaper for Brits

Yesterday the British pound reached a 15-year high against the US dollar, this is great news for overseas property investors.
more

Panama has best growth forcast in Latin America

Panama continues to make the headlines in Latin News with increased GDP
more

Panama property ripe for investment

Property in Panama is ripe for investment especially if you’re an investor using other currency than the US dollar right at the
more

Panama's property market in progress

Panama is rapidly progressing; the canal is expanding, international tourism is increasing, the mor
more

Long Term Property Investment in Panama is Excellent opportunity

Panama is currently one of the most considered and researched locations with many investors.

The Dominican Republic

By Knightsbridge Investment Group

The Dominican Republic is a colorful tapestry of Spanish, French, Haitian,
and African influences woven by a rich and storied history.

Panama Property

The Panama property market is receiving intense international interest from property developers and investors alike.
more

Panama Investment Property Buying Tips

The general consensus of opinion in the property investor world right now would seem to be that you can’t go wrong with investment real estate in Panama.
more

Panama for Real Estate Investors

Panama is a strategically important, stunning, tropical Central American country growing increasingly popular with real estate investors particularly from Northern America and Western Europe.

Panama Real Estate Investment Potential

The real estate investment potential in Panama has been growing directly in line with international interest in Panama
more

Royal Caribbean Itineraries from Colon, Panama

Royal Caribbean To Offer Southern Caribbean Itineraries From Colón, Panama
Cruise Line Continues Growth in Latin America For 2008-09 Season

How to be a smart Panama investor

Here are 8 great attributes to any smart Panama investor. Coming to know a lot of these folks, and with many of them as personal friends, it can be helpful to look at the commonalities of those who truly succeed in the Panama real estate market, to deline
more

World's Most Overpriced Real Estate Markets: Its not Panama

Buy a home in Monaco and you'll enjoy iconic beaches, glamorous casinos, a renowned arts and music scene, pulsating nightlife and boutique-packed boulevards.
more

Panamas 'discount paradise'

Panamas discount paradise

Thanks to Panama’s ‘Law No. 9’, foreign residents can enjoy a first-class lifestyle in a beautiful tropical haven while saving thousands of dollars per year on just about everything, in

DFW International Airport Adds Panama, Turks and Caicos Islands to Global Portfolio

DFW International Airport Adds Panama, Turks and Caicos Islands to Global Portfolio
more

Travel up 6%

The World Tourism Organization reports that international tourist arrivals worldwide rose by over 6% from January through April 2007
more

Bavaro Open

The Bavaro Open tournament will be held again at the Cocotal Golf & Country Club in Punta Cana.
more

Sports fishing in Punta Cana

The XVII International Blue Marlin Tournament is ready for 26-28 July in Cabeza de Toro, announced organizers of the Santo Domingo Yacht Club.
more

True ecotourism

Loma Quita Espuela is open to true lovers of eco-tourism. By participating in the programmed excursions, visitors are contributing to preserve the mountain.
more

Hard Rock Cafe in Punta Cana

Hard Rock Cafe opened this month at the Palma Real Shopping Village in Bavaro.
more

Copa starts new flights

Copa Airlines is now flying from Punta Cana to Panama City, Panama.
more

American Eagle to Samana

American Eagle has announced that its new flights to Samana will start on 13 December 2007.
more

Santiago goes tourist

Recent hotel construction in Santiago has placed the nation's second largest city on the tourist map.
more

Big numbers for tourism

The Ministry of Tourism published an advertisement in Hoy newspaper (16 August) with tourism numbers. The advertisement highlights the fact that travel to the Dominican Republic is up from 1,925,565 tourists in 1996 to 3,965,055 in 2006
more

Canadian travel to DR way up

A strengthening Canadian dollar and economy, on the positive side, is boosting Canadian travel.
more

4 Tips to Buy Real Estate in Panama

The purchase of real estate in Panama can be confusing and uncertain if you are not well guided, or it can be a very pleasant experience.

Panama's Economy Surges Ahead

A dynamic services sector, a strong investment climate and the Panama Canal expansion programme are expected to ensure that economic growth in Panama exceeds last year's 8.1%.
more

A Quick Review of Golfing Opportunities in Panama

As you might know there's rather limited golf opportunities in Panama ... it's a great place for golf with more courses on the way, so I thought I'd do a quick review.
more

Can Panama Be the Americas' Hong Kong?

The groundbreaking at the Panama Canal on Sept. 3 won't involve the usual golden shovels; instead, dignitaries of the order of Organization of American States Secretary General Jose Miguel Insulza and former U.S. President Jimmy Carter will be treated
more

Panama Canal: work begins on a $5bn project to widen the canal that revolutionised the transport of goods

A few hundred years ago, Panama was a malaria-infested tropical swamp of no particular interest to anyone.
more

A Historic Moment for Panama

The Panama Canal is still an engineering marvel, even 100 years after building began.
more

30th year of Panama Canal

Only four days after the formal start of work to expand its world-famous canal, Panama will mark on Friday the 30th anniversary of the historic Torrijos-Carter Treaties.

more

Expansion of Panama Canal Begins

Cruise ships will have more space to operate once the $5.25 billion expansion of the Panama Canal is completed by 2014.
more

Panama Cruises

Panama is one of the most modern and progressive tourism destinations in Central America.
more

Panama Canal To Be Enlarged

On September 3rd, Panama has officially started a new project to enlarge the Panama Canal so that even the largest ships can pass through it.
more

Escape to Panama!

When we first started looking at a Panama Retirement back in 2002 - 2003 we made up a list things we wanted and we also looked at the things we wanted to escape from.
more

Panama to eradicate illiteracy by 2009

Panama will eradicate illiteracy in the country by 2009, Panamanian Social Development Minister Maria Roquebert announced Saturday
more

Panamas Health Tourism Boom

A new kind of tourism is sweeping into Panama, but these visitors are not just coming for sun and fun.
more

Kite surfing: taking wing over the waves

Kite surfers are gearing up for the British Open this weekend. Charles Starmer-Smith was initiated into their sport in the warmer waters of the Caribbean.
more

Retirees find their 'paradise'

Dominican Republic -- Sitting behind a massive wooden desk, the Dominican Republic's minister of tourism lists the attractions that lure visitors to this Caribbean nation: endless beaches for sun-seekers, white-water rapids for adrenaline junkies,mere
more

Dominican Republic to produce biofuel

The United States and Brazil have chosen the Dominican Republic as one of the four countries where biofuel will be produced with their assistance in financing and technical support.
more

National Geographic: Into the Wild Panama Rainforest

This week I will be in Panama City, Panama for an equipping conference with a number of preachers who work in the Darien Province of Panama.
more

Baby Boomers Flock to Panama

It's the start of a wave of Baby Boomers retiring abroad. This has been made an easier choice by the ease of long-distance travel, internet communications, well-trained doctors and surging US prices that have made traditional retirement sites like Flo
more

Uninsured Americans traveling to Panama for health care

Americans are traveling abroad for medical care like never before and now looking to Panama as a destination to cure their insurance woes, high prices and delaysfor treatment back home.
more

Panama is prepared to become tourist destiny of European

The Panamanian Institute of Turismo (IPAT) informed today that the country is prepared to become the destiny preferred of the European, and indicated in this sense that Dutch company KLM will announce in October the beginning of a new route between Panama
more

All news

Bulgaria

Canada

Estonia

France

Italy

Spain

Dominican Republic Brazil

Brazil

Germany

Panama

Egypt

Belize

Home

Purchasing Abroad dot

Property Search dot

About Us

Site map