Investing in Italian Property PDF

I TA L I A ! P R O M O T I O N Why is it beneficial to invest in a property in Italy? …to purc...

I TA L I A ! P R O M O T I O N Why is it beneficial to invest in a property in Italy? …to purc hase in Purchasing a property in Italy can TAKE ADVANTAGE OF FIRST u… Italy We can help yo come with many advantages and HOME TAXES AND BONUSES Purchasing a home in Italy can also benefits. Find out more below… be cost-effective, especially if it falls an Italian property will make the route under the category of a ‘first home’. toward this visa quicker. Most Italian visas F rom high returns if you plan to This includes a reduction on the require some proof of accommodation; resell the property, to options registration tax, from nine to two per these are only two such examples. in the tourism and rental cent of the cadastral value. If VAT sector, as well as special tax taxes apply (usually if purchasing from MOST EXPENSIVE AND breaks and incentives, owning a company), these drop from ten to four POPULAR PLACES TO INVEST an Italian property can also be useful per cent of the selling price. In general, properties closer to the coast when it comes to applying for a visa. Even if you don’t plan to use your and major cities are more expensive, Read on to find out how as we explain Italian home as a primary residence, and a good investment if your budget these benefits in more depth. there are bonuses, such as tax breaks allows, as resale values tend to remain and reimbursements, to advantage of high. According to an Idealista report ENDURING POPULARITY for certain kinds of renovation work. from the last quarter of 2023, the most Italy has long been a popular tourist For example, deductions are available to expensive places to purchase property are destination, and despite the slowdown those who make their homes more energy Forte dei Marmi, Pietrasanta, Alassio, during the pandemic, some regions have efficient, referred to as a ‘Superbonus’. and Milan. The first two are coastal seen a tourist boom. Veneto, Trentino- Up to 70 per cent of expenses can be locations in Tuscany, while Alassio is Alto Adige and Tuscany have experienced eligible for deduction. Even general a seaside town in northern Liguria. significant tourist increases between 2019 renovation work can qualify for a Venice and Florence aren’t far behind. and 2023. It is estimated that Sardinia, reimbursement of up to 50 per cent (up The same Idealista report ranks the Lombardy, Puglia, Liguria, Lazio and to a maximum expenditure of €96,000). most popular places to buy a home in Campania have also increased by about Renovations that increase accessibility Italy. These include Bologna, Lecce, 20 per cent. And according to Statista, the can access tax benefits for 75 per cent Naples and Cagliari. Forte dei Marmi, most consistently visited places in Italy of expenses. And finally, there is a ‘Green’ despite being the most expensive, was over recent years are Rome, Venice, Milan bonus applied toward the renovation actually the lowest on the popularity and Florence. This long-term popularity of private outdoor spaces, offering a 36 ranking. It is clear that when it comes also increases property values. According per cent tax deduction. These figures to an economic decision, you want to to data analysed by Idealista, the rental apply for 2024, but they generally do evaluate your own needs and purposes. market projects growth – residential not differ much from year to year. rental properties increased by about three ASK THE EXPERTS per cent in 2022. AN ITALIAN PROPERTY MAY The expert team of qualified lawyers and What this means is if you are planning HELP IN OBTAINING A VISA specialists at Italian Real Estate Lawyers to use your property as a vacation home, By purchasing a property in Italy, you can make owning a property in Italy a or not planning on living there year- can bolster your application for certain reality for overseas buyers. From legal round, there is great benefit to renting Italian visas, which can require proof of due diligence, contractual negotiation, it out. Note, however, that there are address for your stay, such as the Elective translation and representation at the final a number of regulations to abide by, Residency visa. Along with providing closing, they’re here to help! Contact us including registering any long-term rental demonstration of stable passive income at [email protected] contracts with the revenue agency and, (around €31,000 per year), you must for more information. with regard to short rentals, providing provide evidence of lodging in the form of the local police office (questura) with a property purchase or a long-term rental FIND OUT MORE information about each of your guests. agreement. By already owning a property, Also, it is important to be aware of you will have already fulfilled this stage. If you are interested in specific local regulations, like if your Similarly, Italy has recently launched purchasing a property in guests are subject to a tourist tax during its own Digital Nomad visa, allowing Italy, or need other assistance, don’t hesitate to their stay. You will also be subjected to ‘highly skilled’ workers with clients contact us at Italian Real Estate Lawyers: taxation on your rental income, set at 21 and/or companies outside Italy to USA  +1 323 403 5396 Italy  +39 0425 093060 per cent. It is therefore best to speak with relocate. This, too, requires proof of [email protected] a qualified Italian lawyer or accountant accommodation in Italy for the length italianrealestatelawyers.com before beginning your rental journey. of the visa (one year). Again, having 18 ITALIA! August/September 2024