The decree on tax simplification, approved by the Italian
government and being published in the Official Gazette, has
partially modified the recent discipline of tax imposed on property
This tax is payable at a rate of 0.76% on the value of real
estate located abroad, for any use by individuals residing in
Italian territory. The taxable amount is the cost resulting from
the deed of purchase or, failing that, the market value of the
place where it is located.
The decree provides, on this subject, the following changes:
a) The tax is not payable if the amount does not exceed EUR
b) If the property is situated in countries belonging to the EU
or in the country joining the European Economic Area (EEA), which
ensure an adequate exchange of information, the tax base is used in
the foreign country to fulfill any tax on property or transfer.
Only in the absence of these parameters can be used to enhance the
policy referred to above.
c) In order to avoid double taxation, tax credit system is
available and equal to wealth or income taxes which are levied on
the same property.
d) for those who work abroad on behalf of the Italian State or
its political or administrative articulation and for those working
outside the country to international organizations to which Italy
is a member, the tax is applied at a rate reduced by 0.4%, limited
period of time in which the activity is actually performed
If the housing unit is used as a primary residence, the taxpayer
can deduct a maximum of 200 euros. For the tax years 2012 and 2013,
the deduction is increased to 50 euros for each child aged under 26
who dwell permanently into real estate, with a maximum of 400
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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