What is the law in Italy for being subject to Capital Gains?

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31.05.2018

Real property gains tax levy in Italy is 26% (the rate was 20% until 2020) on gains from the disposal of the property sold within 5 years of purchase. Called in Italian “imposta sostitutiva”

It is calculated from the sum of the difference between the sale and purchase price and the documented purchase costs. 

Please note, not all expenses may be deducted. 

Possible write-off costs: 

  • the cost of notary services, 
  • real estate agency commission, but only that which was paid for the purchase, 
  • taxes paid for the purchase, 
  • repair costs. 

Make sure that the invoices for the works are issued correctly in the name and surname of the owner, with the Italian tax code, the works at the address of your property have been correctly described. The decision to pay this tax is made at the time of signing the deed of sale. The taxes are paid for you by the notary. 

Or, you can declare the capital gains on your income tax return and pay taxes at the progressive personal income tax rate (imposta reddito persone fisiche).

 

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