You can save purchase tax (registration tax) on the purchase of Italian real estate if you elect to occupy as your main residence (in Italy) and actually occupy it as such for the five years following purchase. In order to occupy it as your main residence you need to get registered as resident with your town-hall (comune) within 18 months of the purchase. Once you are so registered, you will be considered resident for income tax purposes in Italy for any calendar year in which you are so registered for more than 183 days – so think getting registered after 4 July, rather than before, if you can. Once you are income tax resident in Italy you are liable to report your income and pay Italian tax on your worldwide income, to report you non-Italian bank accounts and assets and pay wealth tax. You may be protected from the income tax under a double tax treaty, but you need to make really sure it applies before relying on it.
Should you require any assistance with your personal or business tax, please reach out to our experts
For more information on the tax aspects of home buying please see our technical resources section
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