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Italy – Property Taxes

Property Tax

In Italy, property tax is called “Imposta Municipale Unica” (IMU) and is calculated based on the cadastral value of the property. It is an annual tax that is owed by the owner of the property and is due by June 16th each year.

Capital Gains Tax (CGT)

For a foreign national selling a property in Italy, capital gains tax (CGT) is levied on the profit made from the sale. The standard rate is 26% but this may be reduced to 20% if the property has been held for more than five years.

Inheritance Tax

Inheritance tax in Italy is levied on the transfer of property or assets to an heir. The amount of tax depends on the relationship between the deceased and the heir and the value of the estate.

Gift Tax

In Italy, gifts are subject to gift tax, which is calculated based on the value of the gift and the relationship between the giver and the recipient. The standard rate is 8% but this may vary depending on the value of the gift and the relationship between the giver and the recipient.

Tax on Property Income

For a foreign national who rents out a property in Italy, the rental income is subject to tax. The tax is calculated on the net rental income and is based on the standard tax rates for individual taxpayers in Italy.

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Tax Advantages in Buying a House in Italy

For foreign nationals who are looking to purchase a property in Italy, there are several tax advantages. One such advantage is the “Bollettino IMU,” which is a tax that can be paid in instalments. Additionally, foreign nationals who buy a property in Italy and use it as their primary residence may be eligible for a reduced IMU rate.

Most Common Property Types in Italy

The most common types of property in Italy are apartments, villas, and farmhouses. Additionally, there are also many historic and cultural properties available for purchase, such as medieval castles and church conversions.

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