Capital Gains Tax

The rates went up in 2006 if that is what you are referring to. It used to be 12% and went up to 20%. If you are selling parcels of land you will have to pay CGT (assuming there is a gain in profit) even if none is due on the parcel that contains the house. If you lived in the house for more than 50% of the time you have owned it then no need to pay. If you sell your prima casa and buy another prima casa within 12 months you don't need to pay it. Otherwise you will need to pay it to the Notary at the time of sale. Remember it is only due on the gain so you can deduct the original purchase price (declared in the deed) and any invoiced professional fees and invoiced renovation costs. Your notary should be able to tell you how much it would be (if anything).

If the house is your prima casa: If you bought your house in June 2008 and immediately transferred residence and sell it in May 2010 there is no CGT, if you didnt transfer residence till June 2009 there is... the rule is that you must have had residence for the majority of the time you have owned the house, even 1 day can make the difference. If you dont buy again within the 12 month period it doesnt mean that you have to pay plusvalenza, only that you lose your prima casa incentives the next time round.  You dont have to pay any plusvalenza to the notary at the time of sale, you have the choice to include it in your end of year tax return.  If you earn in Italy it is usually better to pay the notaio at the 20% rate, as otherwise you will be taxed at 23% or more.  If you have no income it can be more economic to declare it yourself and pay (at least some) at a lower tax rate. 

Sorry I should have said "If you sell your prima casa within the 5 years and buy another prima casa within 12 months you don't need to pay it" - or has this changed RAM? I was never given the option to declare it in my tax return - the notary asked for the tax - so that is interesting.

Thank you so much. 

Hi penny - the prima casa legislation is for whenever you sell - so when you sell a prima casa, even after 20 years, you still have only 12 months to buy another prima casa or you lose the agevolazione for good.  Sorry you're still confused Colonel - but thats Italian law for you!  Let me know your circumstances and Ill tell you what and if you have to pay...   

Hi. This link may be quite useful: http://www1.agenziaentrate.it/inglese/ #1