BUYING OR RENTING OUT A PROPERTY IN ITALY
February, 2021
At the end of the Brexit transition period (31 December 2020), UK investors in Italy are in a similar position to those from the US i.e. no restriction on property purchases or rentals in Italy.
As stated in the EU-UK Trade and Cooperation Agreement concluded on 24 December 2020 restrictions on acquiring immovable property apply in certain geographical areas for non-EEA nationals. However, Italy is not among these areas.
UK nationals’ right to own or to buy a property in Italy will therefore not be affected. British residents will still be able to buy a house in Italy, to use the property as a holiday/second home or to rent it out as an income stream.
Property ownership has always been based on sovereign laws set by individual countries. It is worth noting that property investments are not governed by EU legislation.
THE UK-ITALY CONVENTION FOR THE AVOIDANCE OF ON DOUBLE TAXATION.
The bilateral Convention between UNITED KINGDOM and Italy for the avoidance of double taxation will remain in force.
Under the terms of the Convention, if a person has a permanent home in both Contracting States, they are deemed to be a resident of the Contracting State closest to his/her personal and economic relations (i.e., their centre of vital interests).
So, a UK citizen is not considered a fiscal resident of Italy solely on account of their property ownership in Italy.
WILL 22% VAT BE APPLIED TO LEGAL SERVICES?
Legal consultations and services related to real estate purchase and/or planning (e.g., services provided by Italian lawyers and Italian public notaries) to non – EU residents are considered to be lacking “territoriality”, and thus will no longer be subject to 22% VAT.
However, for property purchase taxes and property annual taxes, there is no difference between EU or Non-EU citizens.
IS THERE A RIGHT TO RESIDENCE?
UK nationals are allowed free access to Italy without a visa for up to 180 days a year but no more than 90 days in 1 continuous period.
People who want to stay more than half a year can apply for an Elective Residence Visa and Residence Permit.
In recent years, a number of attractive tax schemes aimed at people relocating to Italy have been introduced, which provide tax breaks for foreign income.
WILL HEALTHCARE ARRANGEMENTS BE GUARANTEED?
Reciprocal healthcare arrangements will continue.
Leaving Europe, live and invest in Italy.
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In collaboration with our Italian partners we provide the following services:
- bilingual assistance in the purchase and sale of real estate in Italy
- property management
Casaitalia International
Active since 1979 in the real estate field of high value, Casaitalia International specialises in the sale of high worth Italian luxury properties in the international markets of Northern Europe, USA and China.
www.casait.it
