If you buy or inherit a property in Italy there are ongoing obligations that you need to meet to ensure that you continue to comply with Italian law.
Insurance
As with owning property anywhere else, it makes sense to insure your property and contents for your Italian home.
Council Tax (IUC—Imposta Unica Comunale comprised of IMU, TASI and TARI)
This is normally paid annually (or each semester) in one (or two) lump sums by 15th June (and 15th December). The amount depends on the location, size and cadastral value of the property. Non-payment of IUC can lead to legal proceedings being taken against you and an embargo on the property.
Utilities
You will be responsible for the utility charges – electricity, gas, water, sewerage, rubbish collection etc. from the time that you buy the property.
Community Charges (Spese condominiali)
You should pay these otherwise the property can be confiscated and auctioned in order to settle the debt.
TV/RAI Tax
An annual tax of €100 must be paid by television owners.
Income Tax
If you are non-resident you must declare any income you have earned in Italy. This applies even if you receive this income by renting out to people from your home country and the money never touches Italy.
If you do not receive any rent from the property, you do not have to pay any income tax. However, it may be necessary to submit the relevant Tax Declaration.
You will also normally have to declare any income in the country where you are tax resident but can normally offset the tax paid in Italy through Double Taxation Treaties.
Italian tax residence
The taxes that you pay when you buy a property in Italy will normally depend on whether you are resident there or not.
Tax residence is a determined by a number of factors, including:
- How long do you spend in Italy each year? If it 183 days or more (not necessarily continuously), then you are likely to be tax resident in Italy.
- Is your main home in Italy? If it is then you are likely to be tax resident there.
- Is your main economic interest there? If so you are likely to be tax resident in Italy.
If you do become tax resident in Italy, then you will normally stop paying taxes in your home country and start to pay taxes in your new home country.
Do not be tempted to have selective amnesia when it comes to declaring taxes. The authorities in both Italy and the UK are clamping down on people who do not do things properly.
Sometimes you should declare something for tax purposes in one country and also in another. Italy and the UK have a Double Taxation Treaty which means that you don’t normally pay tax twice and can offset the tax paid in the other country against the tax that you would otherwise pay in your home country.
Need help with owning property in Italy?
Our UK-based property law team are highly experienced in helping clients who have bought or inherited property in Italy, including dealing with ongoing costs and legal issues involved in Italy property ownership.
With a thorough understanding of both UK and Italy law, we can provide clear, reliable legal guidance in plain English, giving you the confidence to deal effectively with any property you own in Italy.
Call: 01438 382 064 Email: admin@judicaregroup.com