21 Apr Moving to Italy & property Taxes
Bill and Mary have taken their London property gains and turned them into a bigger place with a view on beautiful lake Como, with a ‘calmer lifestyle’, and they have a good amount of savings left over for the future as a result of their decision.
They’re also taking advantage of Italy’s tax concessions for new residents saving them from being taxed on 70% of their income for 10 years.
What started out as a discussion about what taxes have to be paid if you own foreign property when you live in Italy, turned into a realisation of the greater possibilities …. and realising the dream of a better lifestyle for the next 20 years.
Italy’s annual local property taxes are negligible. However they do charge a wealth tax on properties you might already own, abroad.
So what is the Italian wealth tax impact, specifically ?
The IVIE tax in Italy is calculated on non-EU property at the rate of 0,76% of the purchase price (if available) or market value of that property.
Recently I helped Bill and Mary move to Italy from the UK for work and lifestyle reasons. They have chosen to sell their UK home, which had grown in value previously, and they’re buying a great home on lake Como.
Italian property has not grown, comparatively speaking, to any great extent in any area, over the past 10 years. Some cities have grown over the last 2-3 years prior to Covid, however property prices in Italy has been flat or lower overall, since 2010. It’s mportant to note that Italy prices didn’t crash as badly as many other markets either, during the crash between 2006-2013.
From a buying perspective, this represents the opportunity to buy in Italy today – or in many parts of Italy, at 2010 or 2015 prices.
In what area are you buying in ?
For more information get in touch.