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PostPosted: March 12th, 2009, 2:42 pm 
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Joined: March 9th, 2009, 7:37 pm
Posts: 52
Hello fellow purchasers! :D
Mind the Pun but I could not help it!
Does anyone who has completed know what decides the % amount of VAT?
is it the price? I am confused on what type of property classifies as luxury property as the VAT is double for propertys considered "luxury"?????
thanks in advance!


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PostPosted: March 12th, 2009, 3:29 pm 
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Joined: July 22nd, 2008, 11:30 pm
Posts: 145
Hi, I dont know the relivent rulings in italy, except to say i understood that Purchase tax was 4% if it was your main residence and 10 % if it is your second home. I would say however that a very recent ruling in the courts seems to protect foreign purchasers in the EU from being charged 'extra' by other governments.
There was an article on this subject in this weeks Mail, where this double standard seemed to be illegal,and thousands of Brit were in line for a rebate because this was illegal. The article was relating to capital gains but the principle was the same ie; what is charged to locals or otherwise, should be the same. Hope this is helpful
The artical was on page 30 of one of the weekends' Mails !'


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PostPosted: March 12th, 2009, 4:05 pm 
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Joined: March 9th, 2009, 7:37 pm
Posts: 52
well I live in canada so that info is unavailable to me
have you completed yet?
if so what was the total VAT you had to pay
I recognize your user name from another forum Eye on worldwide
We purchased in sabbia di marinella I think your in phase 1
thanks in advance


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PostPosted: March 12th, 2009, 4:37 pm 
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Joined: July 22nd, 2008, 11:30 pm
Posts: 145
Hi Lomardi, Yes we completed about a year ago. We paid 10% IVA as this is our second home. As i understand it if the property is going to be your main residence the the IVA would be 4% I can see no reason why your property would fall into (lovely though it maybe) the luxury category!


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PostPosted: March 12th, 2009, 7:16 pm 
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Joined: May 7th, 2007, 2:32 pm
Posts: 782
Location: England
Taxation

When buying a home from a developer, Italian VAT is applicable.

If you are buying a second home it is set at 10% of the selling price of the property.

If you intend to transfer your residency to Italy and you are buying your first home there it is 4%.

There is no capital gains tax in Italy if you sell your house after 5 years, use the proceeds to buy another house in Italy or have used it mostly as your primary home. In all other cases the capital gains needs to be declared as income.

Hope this helps!

Sam


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PostPosted: March 13th, 2009, 1:35 pm 
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Joined: March 9th, 2009, 7:37 pm
Posts: 52
Great thanks! to both Sam and Finally :D
this forum is more imformative than the @*&^@$#
G&L lawyers I am paying. I asked this question a week ago
with no reply as yet!!!


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PostPosted: March 13th, 2009, 1:45 pm 
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Joined: March 10th, 2009, 3:03 pm
Posts: 25
should it not be the case of if its your first residence bought in italy?????its 4% and any after that considered luxury as in second property there,as you will have to pay taxes on rentals etc and need italian code fiscale???to bank there pay mortgages etc.......
or are they charging 10% because foriegn buyers?just find it strange because my
friends husband italian,has 2 hmes in ireland,only bought his 1st in italy and was charged yep 4%?????whats the difference.
checking it out,dodgy,or downright cheeky,someone making buyers from abroad
pay more??????
lal


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PostPosted: March 13th, 2009, 4:35 pm 
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Joined: October 3rd, 2008, 8:20 am
Posts: 76
lal wrote:
should it not be the case of if its your first residence bought in italy?????its 4% and any after that considered luxury as in second property there,as you will have to pay taxes on rentals etc and need italian code fiscale???to bank there pay mortgages etc.......
or are they charging 10% because foriegn buyers?just find it strange because my
friends husband italian,has 2 hmes in ireland,only bought his 1st in italy and was charged yep 4%?????whats the difference.
checking it out,dodgy,or downright cheeky,someone making buyers from abroad
pay more??????
lal



Hi
We were told that the VAT was 10% but if we had Italian residency within 18 months of completion we would get 6% of it back !!! but you have to spend 90 days in Italy within the fist 18 months.


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PostPosted: March 14th, 2009, 10:38 am 
Lal,

The reasoning is that Italians actually traditionally live in Italy, hence the 4% for their first home.
If they - or anyone else - buy a second home in Italy, then the 10% tax is applied.

Jessika


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PostPosted: March 14th, 2009, 7:14 pm 
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Joined: January 29th, 2008, 5:12 am
Posts: 777
happybunny wrote:
lal wrote:
should it not be the case of if its your first residence bought in italy?????its 4% and any after that considered luxury as in second property there,as you will have to pay taxes on rentals etc and need italian code fiscale???to bank there pay mortgages etc.......
or are they charging 10% because foriegn buyers?just find it strange because my
friends husband italian,has 2 hmes in ireland,only bought his 1st in italy and was charged yep 4%?????whats the difference.
checking it out,dodgy,or downright cheeky,someone making buyers from abroad
pay more??????
lal



Hi
We were told that the VAT was 10% but if we had Italian residency within 18 months of completion we would get 6% of it back !!! but you have to spend 90 days in Italy within the fist 18 months.


It is true that, if you take out residency, then the tax on your new (2nd home) is a mere 4%. I paid the 10% which was based on the total purchase price I paid for the house. Word of warning: they are really cracking down on foreigners who say they are taking out residency within 18 months, and do not...so I have be informed.


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PostPosted: March 14th, 2009, 7:42 pm 
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Joined: January 29th, 2008, 5:12 am
Posts: 777
lormardi wrote:
Great thanks! to both Sam and Finally :D
this forum is more imformative than the @*&^@$#
G&L lawyers I am paying. I asked this question a week ago
with no reply as yet!!!

There is no 20%. It is 10% of final purchase price. 4% only if you are an Italian resident or become one.


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PostPosted: October 5th, 2009, 7:36 pm 
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Joined: October 22nd, 2008, 10:46 pm
Posts: 103
Location: argyll scotland
Does anyone know?
If iTALIAN property bought through a business in uk for letting purposes, whether 10% vat can be reclaimed on the business's uk vat return?


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PostPosted: October 5th, 2009, 7:47 pm 
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Joined: August 7th, 2009, 2:31 pm
Posts: 290
Apart from the tax on the apartment purchase and the time spent in the country if someone applies for residency in italy do they become liable for income tax on all of their income .I believe this is the way it works can anyone confirm.If so you would be liable for italian income tax on any money earned in the uk or in your other home area .
any info on this scary idea?


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