Learn about Italy Tax Planning at InvestItaly.com

Here at InvestItaly.com we do realize that Italy's tax system can be somewhat complex and strongly advise you to consult with an expert tax advisor when considering your Italian property investment. In the meantime you can use our brief guideline in order to find out more about Italy tax planning and the Italian tax policy.

ICI (Imposta Comunale sugli Immobili) is the Italian property tax. It is charged from anyone who owns immovable property in Italy. ICI must be paid according to the following timescale: 90% by the 30th of June each year and 10% between the 1st and 20th of December. If the tax is not paid on time, an add-on of up to 200% can be charged.

ICI is charged at between 0.4 and 0.7%, depends on the size and category of the assets, the local authority and the location. If the property is categorized as not fit to live in or it is being refurbished, the ICI is reduced by 50%.

Capital Gains Tax

Currently there is no capital gains tax in Italy.

Inheritance/ Wealth Tax

Different form numerous other countries, Italy does not charge a wealth tax.

Tax on Rental Real Estate Property

Any incoming made as a result of property rentals will be taxed. However, this can be deducted from any costs incurred due to maintenance of the property. The rate can be anything from 19% to 46% depending on the rental and property conditions.

UK-Italy Tax Agreement

There is a double tax agreement.

Stamp Duty

In case the property is bought from an individual, the rate is 11% of the government valuation. The value of the asset is not the acquisition price itself, but the figures charged by the local tax office which are calculated from official tables.