Ttax laws in Italy may prove a boon for private buyers looking for holiday homes - even those with a view of renting them out.
This represents a major step forward in comparison with the previous tax regime in Italy. There are lower completion costs and the potential to bypass capital gains tax.
Buyers looking for holiday homes with a view of enjoying them for at least five years, or people looking for a permanent residence have the following benefits:
1.Purchase costs that in Italy used to be as high as 15-17%, can now decrease to approx 4% - 5%, which is a huge gain in some cases.
2. After five years of property ownership owners, even holiday home owners, are exempt from capital gains tax in Italy. Keeping in mind that capital gains tax stood at 12% but under new rulings this has been raised to 20% indicates how long term investors seeking stability gain considerably.
3. Inheritance tax only on high value properties are still significantly lower than that of UK death duties, another significant issue for mature individuals looking to invest here.
Sarah Ferrara, Managing Director of Garda Homes, says, “To gain some perspective of just how beneficial the new taxs laws are, if we take the featured two bedroom apartment in Caneto, near the popular Lake Garda town of Salò, as an example, we see that under the old rules taxes on this property would have been £16,500. However, under the new rulings this figure drops dramatically to around just £2,250; the savings are evident for all to see. Furthermore, if the owner becomes an Italian resident within 18 months of purchase this figure drops again to around just £600. Therefore those looking to invest into the Italian property market to enjoy the benefits of this region also gain significantly financially. The new tax laws will undoubtedly bring a resurgence of buyers back to Italian shores which will further strengthen this market which has performed well over the last decade.”
Property prices in Lake Garda are currently achieving 5% - 8% capital appreciation per year and the rental rewards are high. This particular property will earn approximately £7,500 to £9,000 rental per year because it has the three winning factors: lake views, swimming pool and restaurant within walking distance.
Garda Homes have hundreds of Lake Garda properties to suit all budgets and desires with prices starting from just £65,000 and rising up to around £7 million, with new properties being added daily.
For more information, visit gardahomes.co.uk
