In Italy, homeowners are expected to pay tax on any payment they receive from long or short term rental of their Italian properties.
Generally speaking, the Italian law requires that tax from rental
income is paid by all the co-owners of
the property on a pro quota basis, no matter who actually signed the rental
contract or if the rent is paid in favour of only one of the co-owners.
Deposito prezzo is the term used for a specific bonded holding account for the balance of payment related to the purchase of an Italian property.
Deposito prezzo protects against the risk of legal claims or encumbrances that may arise between the signing and registration of the deed of sale at the land registry (catasto).
Once you have signed a deed of sale, it is sent to the
land registry, where an official stamp is placed on the deed of sale. The
registered deed of sale is returned to the notary you used to authenticate the
transaction.
It generally takes two to three weeks to obtain the registered deed of sale and thereafter, you can obtain a copy from your notary.
A Last Will and testament is absolutely necessary to avoid causing conflicts among your heirs, especially if you are a foreign citizen who owns goods and property in Italy. Not only can a Will allow you to assign your inheritance to the appropriate beneficiary, but it could also be useful to prevent problems for your heirs, and it could even enable you a tax saving. Let’s see more specifically each case.
Those who are married or in a registered partnership and without children
Applying for Italian tax code (in Italian: codice fiscale) seems a simple task, but there are some hidden pitfalls to be aware of. Check them out in the article below.
Table of Content
What is and When an Italian tax code (codice fiscale) is needed:
What do the tax code figures mean.
Where and how to apply for the tax code in Italy.
What document/information is required to apply for the Italian tax code:
Common mistakes when applying for the Italian tax code.
Make sure to read this, prior to signing any property purchase offer in Italy
You’ve seen it:
the Italian property you’ve always dreamt about.
Now you have a
pen in your hand and the property purchase proposal in front of you, ready to
be signed.
Take your time before putting pen to paper, no matter who drafted that proposal for you.
You deserve a
little hesitation, especially if you are going to sign a boilerplate template
provided by a Real Estate Agent and not by your own legal advisor, or if there is anything
whatsoever that you feel is unclear to you.
If the proposal has
been provided by Real Estate Agents, I am sure they told you that it’s a
standard proposal, drafted as per common
general terms and in compliance with the Italian civil code; and that the
standard template itself has been approved by the Chamber of Commerce.
Property transaction where one of the parties is not an Italian individual, cannot be considered as a normal scenario. The involved professionals are not always experienced to deal with these cases.
Fact: In Italy
you cannot buy a property without the assistance of an Italian Notary Public.
By law, a Notary Public must remain impartial during the property transaction. A Notary can also provide legal advice if requested but must maintain impartiality when providing parties with legal advice . Read this article for further information about Italian Notary Public role.
There is no
legal obligation to engage the services of an independent lawyer for property
purchases in Italy. And, normally Italian
individuals do not hire an independent lawyer for property transactions between
themselves.
An Elective Residency Visa (ERV) is specially intended for foreign
nationals wishing to permanently reside in Italy and who are in the position to
support themselves financially without working in Italy.
In Italy only an Italian Notary Public’s escrow account benefits from full and complete legal protection against possible creditors.
There are two main payments
you are expected to make when buying a property in Italy,or
that you will receive, if you are selling an Italian property; the deposit and the balance.
The deposit is usually paid upon purchase offer acceptance and it is aimed at confirming the parties’ intention to proceed with the purchase-sale contract. The balance is customarily paid upon closing, unless otherwise agreed.
“Going through the process without the help of experienced professionals is risky”
Beth Watson was living in
Boston in 2015 when, out of the blue, she received an email informing her that
she had been named as the sole heir in an Italian Will.
Beth recognised the name of the executor who had sent her the email, and sadly she recognised the name of her
Swiss uncle with whom she had spent so many happy holidays. Her uncle had died,
leaving Beth an estate in the southern Italian region of Molise, complete with
olive trees, forests, farmland and habitable buildings.
Beth was stunned to be named as her uncle’s heir. She also soon realised that this wonderful bequest came with real challenges. Like other Americans who inherit property in Italy, she would have to navigate the Italian legal system, in another language and file a great deal of paperwork. She started out believing the process would be straightforward, but soon concluded she had to find trustworthy professional help. Amongst other things, there were expenses to be paid and accounts to be transferred. Paperwork and bureaucracy which were not easy to handle from Boston.
According to Italian law, when an inheritance is left, either fully or partly, to a deceased’s child or sibling who has died before the testator, the descendants of the beneficiary succeed to the inheritance, pursuant to the “right of representation” (articles 467 and 468 of the Italian Civil Code).
The same applies if a decedent’s child or sibling
is unwilling to accept an inheritance to which he/she would be entitled,
or if he/she is declared unworthy to inherit (art. 463 of the Italian Civil
Code).
The person nominated to inherit is called
the, “represented”, while his/her descendant who through the represented’s
death becomes raised to the place and the degree of the person represented is known
as the, “representative”.
