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06.06.2013 - IVIE - Italian tax on real estates abroad. Deadline June 17th 2013

Every individual with a residence in Italy who owns a real estate abroad, regardless of what use it is designed for, are obliged to pay the IVIE (Italian tax on real estate abroad)

The tax s required from:

  • owners of buildings, residential lots and other areas of any use, including business immovable properties designated to be so either by its nature or by the fact that are designed for a business activity or self-employment;
  • holders of usufruct agreements, right-of-use agreements or residence agreements, as well as emphyteusis and leasehold agreements;
  • concessionaires, in case of public area concession;
  • leaseholders of real estates, granted to be leased, even if not built yet or being under construction.

TAX RATE

The tax rate is equal to 0,76% of the value of the real estate.

HOW TO CALCULATE THE VALUE OF THE REAL ESTATE?

The value of the property is calculated, in general, from the costs present in the deed of acquisition or in contracts where the value of the property was stated during the acquisition of real estate rights other than ownership. As far as the real estates located in the European Union or in the European Economic Area are concerned, the circular letter n. 28/e from July 2nd, 2012 specifies as follows: "For real estates located in one of the European Union Member States or on the territory of a Member State of the European Economic Area (EEA), that guarantees an adequate exchange of information, the value to consider in order to determine the tax amount is, above all, the one that is defined by the land registers according to the adequate evaluations made in the country where the real estate is situated with the purpose of tax payment based on the value of the real estate itself, even if inherited or donated. If the property has more than one cadastral value, the one designated to calculate the income tax and the one designated to calculate the property tax, the value taken into consideration must be the one used in the country of origin to calculate the property tax, including the taxes being under the competence of local authorities. Therefore, in order to calculate the tax on real estates located in the countries mentioned above, it is crucial to take into consideration the cadastral value of the estate which is the one that makes the base for the calculation of the taxes derived from the property ownership."

TAX EXEMPTION

The tax payment is not required if its value does not exceed 200,00 €

In this case the taxpayer is not even obliged to indicate the data related to the property in the individual income tax return (dichiarazione dei redditi).

Source: http://www.agenziaentrate.gov.it

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