Paying italian property taxes?

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J-9

1193761238

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Anyone have information about paying Italian property taxes? What is the procedure to report such payments for U.S. tax purposes? I want to purchase a home here, but I am not sure of all the requirements...if anyone has had this experience that can point me in the right direction I'd appreciate it. Neen

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Jenny-764402 1193836871

Hi Neen. Can you explain a bit more. Are you going to buy a second property, are you going to have Italian residency or are you looking to remain living in the US and have a holiday home in Italy?

J-9 1193910359

Hi Jenny:


I work here in Italy as a U.S. citizen, so I have domicile but not residency and I pay U.S. taxes. I've lived and work here for the last 7 years. I hope this helps to better focus on the issue?


Ciao,


Neen






Neen

Izzy-764467 1194304728

Have asked friends here but none of them have ever filled out a tax form.


Sorry.

HelenB-764392 1194374878

I asked an American friend here and she said it is treated the same as any tax you would pay on an American property.


Have you thought about consulting an American Real Estate Agency in the US - or having a sneaky look on their website.

Stipulatio 1202061842

Purchase of real estate in Italy is subject to imposte.



The imposte consist of indirect real estate taxes and registration fees you pay on top of the purchase price at completion. The Notaio sends these taxes along with the deeds and documents to the land registry to ensure that registration of the transaction is complete, are applicable either at a fixed, standard or reduced rate and are known as:



Imposta di registro: This tax is applied whenever there is a new registration of title. Transactions will be taxed either at a fixed amount of €168 or as a percentage of the value declared at the Atto.



Imposta ipotecaria: This tax is applied when applications are made to make changes (cancellations, additions and amendments etc) to the public register and when there is an application to lodge new or to discharge previous mortgages and restrictive covenants etc. Even if you are buying a property without a mortgage for example, the Notaio still has to lodge this information at the public register and so your transaction will be taxed either at the fixed amount of €168 or as a percentage of the value declared at the Atto.



Imposta catastale: This tax is applicable when applications are made to the Land Registry to transfer existing registered titles. Transactions are again taxed either at a fixed amount of €168 or as a percentage of the value declared in the Atto.



The values are summarised as follows:




























Transaction type


Buying privately


Standard rate Imposta


Reduced rate imposta


(prima casa)


Fixed Imposta


€ (euro)


Imposta di registro


7%


3%



Imposta ipotecaria


2%



168,00


Imposta catastale


1%



168,00


Example: If you buy a privately owned property for personal residential use for say € 100.000 and apply for residency, this will be their primary home so you are eligible for the prima casa benefit. The tax and registration fees you pay will amount to € 3.336,00.


Note: The tax is paid on either the purchase price or the valore catastale. For simplicity sake, we have used the purchase price in the example.


If on the other hand you do not qualify for the prima casa benefit, then the tax is the higher rate of 10% (7+2+1).


What is prima casa?


Prima casa: If you are intending to live in Italy and apply for resident status at your local Comune, you will be eligible for the agevolazioni per l’acquisto della “prima casa.” This means that you only pay the reduced purchase tax rate of 3% plus the imposta ipotecaria and imposta catastale providing that the property is your principal home for residential use. “Prima casa” status applies to:



Urban properties classified as A1 to A9 and A11 (providing they are not classified as luxury properties) intended for residential use, properties that are under construction or renovation which are to be used as your main, non-luxury residence, outbuildings and annexes to be used as garages, parking areas and shelters. By main residence the Agenzie delle Entrate intends a property that is occupied by the proprietor or his family for more than 50% of its period of ownership.



In order to become eligible for the prima casa tax concession, you will need to apply for residency within 18 months from the date of completion. Moreover, you will need to declare (making false declarations is breaking the law and will lead to the loss of the concession and fines) at the rogito that:



1. The property is your principal home and that it is located within the municipality where you reside or intend to establish residency in future, or domicile if this is where your main centre of business activity will be


2. You are not the exclusive owner of any other property in Italy, either via shares or via the matrimonial property regime of community of assets


3. You do not possess rights to use any existing property (to include bare ownership or usufructuary rights) anywhere in Italy that has already qualified for the prima casa concession, even if purchased by a spouse or partner


4. The property is not classified as a luxury home



Italian nationals who are either resident (registered in AIRE – Anagrafe Italiani Residenti Estero) or working on secondment overseas are able to qualify for the lower rate tax.


Hope this helps


Best regards


Luchetti & Partners Studio Legale Tributario

curtg 1220042642

Wife and I (living in USA) purchased an Italian property, declaring residency within 18 months. I have since acquired my citizenship and registration in AIRE, after our purchase and declaration in the deed. Will AIRE registry continue prima casa tax benefit if we are not able to move to the property within the 18 months?


Registration in AIRE provides prima casa benefit, but the declaration in the deed stated intent for residency.



Curt

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