Find a reputable solicitor in Calabria. Experience has shown that it is usually better to use a solicitor based in the country where you are buying property.
As an EU resident you are free to purchase property in Italy without gaining permission.
You can assign Power of Attorney to your lawyer who will be able to attend the signing of contracts and deeds at the Notary’s office and sign all relevant documents on your behalf. You will also need a fiscal code before you complete and your lawyer can obtain this from the tax office on your behalf.
The Notary is a government official who must place on the public record that the property title deed recording the purchase has been signed in his or her presence and understood by the buyer and the seller, both of whom must be represented at the signing. Your lawyer can act on your behalf at this point if you have assigned the relevant Power of Attorney to them. Note that the use of the Notary is not a substitute for independent legal advice.
You will be advised to make a will; you are allowed to have a separate Italian will which will deal only with your assets in Italy without replacing the main will you may have in your own country.
Home in the Sun assists you throughout the entire process right up until completion, and beyond if you need us. You are guaranteed both UK and overseas contact and assistance at all times.
Italy currently offers tax saving benefits such as no capital gains tax, no inheritance tax and the wealth tax is a mere 0.4% of the fiscal value, which adds up to huge savings on the investment! These tax advantages make it an ideal place for investors.
Inheritance tax was abolished by the Italian government in October 2001. Gift tax was also partly abolished meaning that no taxes are levied on gifts between spouses and other relatives to the limit of the fourth degree of the relationship. If the beneficiary is not related, gift tax is only payable on the value of the asset transferred which exceeds €180,760. There is no liability on the transfer of assets up to this amount or of a lesser value.
Tax on rental income
If you let out a property in Italy, you will usually be taxed on 85% of the rental income received. A person not resident in Italy for tax purposes must still make a declaration of Italian income. At the time of going to press, a rate of 23% was payable on income up to €15,000. Please contact us for the latest rates.
Capital gains tax
Gains made on the disposal of Italian real estate are taxable unless the property has been owned for more than 5 years in which case it is exempt from capital gains tax in Italy. The main home is also exempt provided another main home is bought within one year of the sale.BP-PB