The Italian real estate market has greatly suffered the recession of the early 2000’s and it never recovered since then. Real estate prices continue to decrease in several areas of Italy and the government has created incentives and cut taxes to stop this decrease.
Buying a property in Italy is quite a straightforward process, and albeit you don’t need to be assisted by experts to go through the process, it may be useful to do so in order to find the best tax breaks available.
Renovate in Italy
Did you know that you can renovate Italian properties using the government money? If you didn’t know, let me introduce you the Superbonus scheme. With this scheme you can undertake major renovation on the property structure, as well as energy efficiency improvements and claim the full cost to be reimbursed.
There are other schemes to further reduce your renovation costs, but the Superbonus is definitely the most important one.
Basically, you can renovate the property for free even if you don’t pay tax to Italy because you can trade the credit directly to a bank (or the post office) for hard cash.
Furthermore, if you hold your residential property for 5 years, there is no capital gains tax.
14th Century Umbrian townhouse under restoration
Learn More About Immigrating to Italy and Buying a Home
Accounting Bolla is a boutique Italian tax firm equipped with experienced accountants assisting corporations, individual and expats with their tax affairs. Specialized in international tax areas for expats and companies wishing to establish in Italy.
Reach out to Nicolò and request a consultation to discuss the home buying process in Italy and the financial incentives in making such investment.
Check out our Relocate article on Buying Property in Italy.