Pay Zero € in Property Taxes on Your Primary Residence in Italy
Italy, renowned for its beauty and history, offers distinct property tax benefits. Typically, property taxes, known as “IMU”, range between 0.4% and 0.76% of the fiscal value, which is usually lower than the purchase price. Unique to Italy, there’s no wealth tax, and if you make Italy your primary residence for over 183 days a year, you’re exempt from property taxes. However, luxury properties, such as castles and villas, incur a 0.4% tax even as primary residences. In 2021, a new exemption was introduced: retirees living abroad owning property in Italy can enjoy a 50% tax reduction, a benefit extended to non-Italian citizens without the need for AIRE enrollment. Dive deeper into Italian real estate intricacies by subscribing to the newsletter. Ciao!
No Tax for Home Buyers 35 years & under in Italy
In 2022, Italy introduced the “Bonus Prima Casa” for individuals under 35 aiming to buy their first home. This incentive waives the usual 2% transfer tax, “Imposta di Registro,” and the 50 Euro mortgage and land registry taxes. Eligible young buyers, who won’t turn 36 by December 31, 2022, can get a 100% loan on property value, with the government guaranteeing 50%. Applying for the “First Home Loan Guarantee Fund,” or “Fondo di Garanzia sui mutui prima casa”, covers property purchases and renovations up to €250,000, with interest rates capped at 1.86%. For those earning under €40,000, the guarantee increases to 80%. The property must be in your municipality of work, study, or residence. Prior property owners must sell before reapplying. European and non-European citizens with a “Permesso di Soggiorno” can also benefit
“Decreto Crescita” Tax Incentives for Expatriate Workers in Italy
Spadafora Realty highlights Italy’s enhanced tax benefits for expatriates. Since 2019, not just EU nationals but those from countries with Italian tax treaties can gain a 70% tax exemption on personal income. Moving to Southern regions like Sicily or Puglia increases this to 90%. The exemption applies to employment, independent professional services, and business income earned mainly in Italy. Buy property or have a dependent, and this can extend up to 10 years. Stay updated with Spadafora Realty for more real estate insights.