Italy has a pretty dynamic property investment sector and more so, in towns that have universities like Milan, Turin and Bologna. Property is a great investment in the southern regions of Sicily, Calabria and more where tourism is the most important industry. These parts are known for their natural beauty, architectural heritage and culture. So, the properties in these parts find many takers.
Buying a house in Italy costs over a wide range of prices because most properties there are auctioned off. But the tax structure is the same throughout the country. Here is all you need to know about the taxes you have to pay if you own property in Italy.
- Stamp Duty
This tax is compulsory if you are buying a house in Italy after Brexit but the amount of it may vary depending on the purpose of which you are buying the house. Stamp duty is 2% of the value of the property if you are purchasing the property as your primary one but it may go up to 9% if you are purchasing it as a secondary property and directly from a private seller. If you buy from a registered company as your primary property then the stamp duty is fixed at 200 euro. If you buy from a registered company as a secondary property then the stamp duty amount is the same.
- Land Registry Tax
If you are buying a house in Italy after Brexit from a private seller then you will have to pay 50 euro as land tax. Land tax is fixed at 200 euro if you buy a property from a registered company.
- Mortgage Tax
The mortgage tax is a fixed one. So, if you are buying a house from a private seller then you have to pay 50 euro but if you buy from a registered company then the mortgage tax amount is fixed at 200 euro.
- VAT Tax
You do not have to pay this tax if you are buying from a private seller but the terms and conditions of the VAT tax is slightly different if you are buying from a registered company. The purpose for which you are buying the property influences the amount of VAT you have to pay on it. VAT is 4% if you are buying a property as a primary home and 10% if you are purchasing it as a secondary one. VAT goes up to 22% if you are buying a luxury home in Italy.
- Marca da Bollo
This is simply a stamp. You have to pay this tax for the notary’s documents. It is generally very low.
All these taxes fall under the category of essential taxes. On top of essential taxes, you have to pay law taxes, intermediation fees and also, the construction costs of buying a house in Italy after Brexit.
- Notary tax
To validate your contract and to ensure that all the rules are being followed during the process of signing the contract the presence of a notary is required. You have to pay some tax to the official for these services.
- Intermediation fee
An agency fee may be applicable if you are buying a house with the help of a real estate agency or real estate broker.
All of this along with the cost of construction and/or repairs of the house is what you must have at your disposal if you are buying a house in Italy after Brexit.
Italy has always been a haven for those looking to invest in property and the relatively simpler tax laws make it easier for such investors who are looking to own a piece of property in Italy. Going through the hassles of buying a property may seem intimidating at first but the return on investments is pretty high as most parts of Italy are some of the most coveted places in the world real estate market.