Tax on the purchase of real estate for non-residents
In Italy, as in the vast majority of countries in the world, there are a number of property taxes – both for local residents and non-residents. The first tax is paid by foreigners at the time of purchasing real estate, and its amount is determined by a number of factors. The real estate tax in Italy for Russians is the same as for other buyers who do not have resident status.
There are two conditions that determine the amount of the first tax – registration (Imposta di Registro): whether the object is secondary or a new building. In the latter case, it is 7% and 168 euros additionally, although non-residents pay the same 7% for secondary real estate. The fundamental difference is that for every hundred thousand of the cost of the purchased house or apartment, 900 euros are written off, which in any case is less than the resident 3%.
The registration tax on real estate in Italy for Russians when purchasing it is the same integral attribute of a purchase and sale transaction as two other taxes in the case of “resale”: mortgage and cadastral fees (Imposta Ipotecaria e Catastale), the first of which for non-residents is 2%, and the second – 1% of the cost of housing. A tax of 8% is also levied for the acquisition of land for construction, although, firstly, it will cost more than finished housing, and, secondly, the law will not allow foreigners to develop vineyards, kiwi plantations or other agricultural crops on this site. When completing the transaction, do not forget that additional amounts (from 300 to 1500 euros) will have to be paid to an Italian notary and lawyer.
Taxes after purchasing Italian real estate for foreigners
The main property tax in Italy can be considered the regularly paid IMU ((Imposta Municipale Unica) – a municipal tax that began to be collected in 2014. A year later, the Italian government decided that not all categories of the population should pay it and exempted those owners of Italian property from it. real estate for which a house or apartment in Italy is the only home, provided that it does not belong to “luxury” real estate (villas, chalets, castles, etc.) The same applies to married couples – in the event of the death of one of their members, the other is exempt from paying IMU. In other cases, with the exception of if the building has the status of social housing, real estate tax in Italy for Russians and citizens of other countries is subject to mandatory payment.
Since IMU is paid regularly by the vast majority of foreigners living in the Apennines, it is necessary to have an idea of its value, which is influenced by a number of factors. In this case, you should focus on the cadastral value of real estate in Italy, which is about a third lower than the real one. However, this is not enough to calculate IMU, since this mathematical process also involves such indicators as cadastral income and a coefficient, the value of which depends on the type of property. For example, there are a lot of categories – from villas and small shops, for which you will have to pay completely different amounts.
In order not to get into trouble and not lead to a fine or at least a penalty, you should visit the local cadastral office or tax office. This must be done before June 16, when half of the total tax amount is paid; the second half must be paid before December 16.
Other property taxes in Italy for Russians
Property taxes in Italy for Russians are not limited to the above-mentioned payments, although, despite their regular nature, they do not cause a serious blow to the family budget. Moreover, in 2015 the Italian government decided to combine them together. In addition to IMU, we are talking about taxes such as TASI (Tassa sui Servizi Indivisibili), which is considered a municipal tax for the entire locality and is levied on all its residents, regardless of citizenship or age. The funds received in this way are used to improve the territory: planting green spaces, installing street lights and removing garbage.
Specifically, the improvement of the territory (for example, the construction of children’s playgrounds) concerns the TARI tax (Tassa Rifiuti), which residents of Italian cities pay for waste removal, regardless of the value of their property. For the TARI tax, the defining characteristic is the area of housing, the time of its use for residence and the number of people registered in this area.
Other taxes on real estate in Italy for Russians are related to its intended use. First of all, we are talking about renting out, which will officially cost based on the costs of repairs and maintenance of the property, but in any case the discount cannot be more than 30%. If a foreign owner decides to sell his property before the end of the five-year ownership period, he will have to fork out money based on the income tax rate. Finally, a gift even to immediate relatives (spouses, children, parents) will cost 4%, one and a half times more will have to be paid when transferring real estate to distant relatives, and 2 times more to all other heirs.