The Abitabilità and tax on the sale of Italian properties.

I have been asked a question a  few times in the last year or 2 about the abitabilità and thought I should get an answer.  Here is the question followed by the answer:

Question

If, on the sale of a property in Italy, it is excluded from Capital Gains tax (if owned over 5 years), then from when does that 5 year period start? The purchase of the property or the point at which the abitabilità is given?

Answer

The 5 year countdown starts from the moment the property is ‘purchased’ provided that you are registered as a resident within 18 months of purchase at the Comune AND the property is registered as a primary residence.   

This is an Italian tax break and so the benefit from it is payable to Italian tax residents ONLY.

If you are thinking  of moving to Italy and would like advice on the Italian tax system, how it might affect your income, assets and expenditures then please get in touch with me at gareth.horsfall@spectrum-ifa.com or you can call me on +39 3336492356.  With care, you prosper.

The Spectrum IFA group (Italy) specialises in providing expats in Italy, or those who are intending on moving to Italy, with tax saving, investment and general financial planning advice.  We have an established network of professionals in Italy and if we cannot find the answer to a question we are happy to try and find out for you or put you in touch with someone who can.