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Why to move to Italy Now?

Why to move to Italy Now?

  • No Real Estate capital gain taxation after 5 years from purchase
  • Low Property Taxation
  • Excellent and free Sanitary System for residents
  • Heritage taxation exemption up to 1 Million (more details available upon request)
  • Flat Tax (see details below)

About Flat Tax, in the ordinary regime, Italian resident Individuals are subject to tax on their worldwide income. However, recently Italy introduced an alternative tax regime that consists in the payment of a fixed amount of €100.000 per year on foreign source income.

Who does the Flat-tax regime apply to?
The new Flat-tax regime applies to non-resident individuals who transfer their tax residence to Italy. The Italian Tax Administration clarified that individuals must actually move to Italy in order to benefit from the new Flat-tax regime.
Access to the regime is limited to individuals who have had a foreign tax residence status for at least 9 out of the last 10 fiscal years

Take a look to our properties listed online!

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STAY TUNED! You can risk to Retire in Italy and Not Pay Taxes for 10 Years!

The Mediterranean views and limoncello might seem like a distant dream for many, but Italy could soon be providing your “Dolce vita” thanks to the new international retirement scheme.

A new proposal from the Lega — Italy’s nationalist, far-right party — hopes to attract both national and international retirees to settle tax-free for 10 years. The incentive of the bold new plan is to encourage repopulation in southern regions of Sicily, Sardinia and Calabria. The scheme it would aim to welcome some 600,000 residents in the next three or four years, in these part of Italy which is experiencing rapid depopulation and severe unemployment. To qualify, retirees would be required to settle in villages and towns with a population that has declined by at least 20% and with fewer than 4,000 residents.

Sicily, Sardinia and Calabria were chosen due to their lack of contribution to the national gross domestic product (GDP). To be able to participate in the project, towns and villages or each region will have to prove they have had a depopulation rate of 20% in the last 10 years.

Apart from the obvious lure of not being bothered by the tax collector, there’s the added draw of the low cost of living and a higher quality of life. Gaining the attractive 10 percent tax break would require those who participate to spend at least six months and a day living in one of the plan’s qualifying towns.

The proposal has yet to be brought to parliament but is being suggested as part of an effort to bolster the economy in these regions. Unemployment and a shortage of jobs means that most local millennials have left for greener pastures. The lack of jobs, however, does not pose a problem for retirees so…STAY TUNED!

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Top Questions to ask your real estate agent when selling your house

So you’ve decided to sell your house. Congratulations!

Now, you just have to find the right real estate agent to help you make the most out of your sale.

The best way to decide this is to contact different agents, try to get a feel for how they work and see if they match what you’re looking for.

1. How long have you been in real estate?

Considering that your home is likely your biggest asset, you will want someone who has enough experience and knows the business, so you can rely on them to get all the important stuff right.

The best option will be one who knows your area and what buyers are looking for. You can ask further questions around this topic, such as ‘what’s popular in my area right now?’ and ‘what predictions do you have for the market in my area?’

2. What properties have you sold recently?

Ask what kind of properties they have sold in the past year and where they are located. This way, you’ll be able to see if they have previous experience with properties like yours and how successfully they were sold.

Knowing this helps you to see if they have the right kind of buyer database as well as the skills to market your property correctly. Asking how long those properties were on the market for also gives you an idea of how long you might have to wait before your home is sold.

3. What do your real estate agent fees include?

Different agents may include different services for their fee, such as advertising expenses, home staging service, photography and floor plans, inspections, property reports etc. You can find agencies that will charge a flat fee rather than a percentage of the sale price. Med-Imm can includes all of the above services within one fixed fee – making your budget easier to manage and helping you take home more from the sale of your home.

4. What price do you think I can sell my house for?

Once the agent has given you a property value estimate, make sure you ask for evidence to back it up. You’ll want to know why they think your property is worth the amount they quote. That evidence should come in the form of comparable homes, sold prices for your area from the last six months, and general property market trends. It’s illegal to falsely inflate a price, so make sure you’re not being sold a puffed up price.

5. What could I do to my house to improve the chances of selling it?

Sometimes, doing a little renovation can help boost the price of a property. Ideally, your agent will know what the buyers are looking for and suggest a few things you can do to your property here and there to ensure you get the best price.

These are typically minor cosmetic fixes, like adding more plants to your front garden, painting the kitchen cabinets or re-grouting the tiles. Med-imm is ready to show you the Home staging service to valorize your property.

6. How long will it take for my house to sell?

The answer to this question may be “it’s hard to tell” but that’s ok – it’s better to get an agent who will honestly say they’re not sure, rather than someone who promises it’ll be sold in a month with no real evidence.

The way your agent answers this question will help you find out their views on the current market and help you understand it – see if they can refer to recent, comparable examples and explain how your house is similar or not, and how that might impact on the selling time.

7. Are there other costs I should consider?

It’s always good to know exactly how much you will have to invest to sell your property. This question will help you avoid any surprise expenses.

 

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Top Crucial Questions to Ask Your Italian Estate Agent

The idea of moving to Italy has captured the imagination of many, thanks to its glamorous Hollywood depictions and the allure of incredible food and wine.

So, what do you need to know before you get started?

We suggest some important questions to ask your  Italian real estate agent:

  1. How long has this real estate been for sale?

This is an important question to ask. Of course, if the housing market in the area is depressed then it could be that all properties are taking a long time to sell. A long time on the market might mean that the seller would accept a lower price and this is crucial to be known.

  1. If renovations are essential, ask how much they will be likely to cost

Once the final deed on your new property purchase has been completed, you will have no way to negotiate further discounts or any other deal on this dwelling, so if renovations are essential, you really need to find out true costs prior to purchasing it. For example, check out the windows!

  1. Is there anything that you would want to know about the house if you were buying it?

The big fear if you are buying is that you are missing out some big negative factor that others know about. Is the local train station about to close, a nearby sewerage plant opening up, or the next door neighbours the family from hell? If you have any doubts about a house, ask next door neighbours or local shop keepers what they think.

4. Are the sellers ready to negotiate on the price?

If you find a house you really want to purchase, then don’t be shy to ask your real estate agent whether the seller is ready to reduce the price. He might give you this valuable information even before you make a deal.

5. Have any major works been conducted?

If so, are you able to have a look at the relevant planning and building control consents? In most cases you can search online for planning applications (granted and refused) on the local planning authority website. It would be awful if you bought your dream home only to find out you would have to knock half of it down

6. How much are utility bills in the area?

Try and get exact amounts. Talk to the seller if you have to. While these may seem like small considerations in comparison to the amount you will spend on the house, they are reoccurring expenses that will add to the pressure of owning your home

The above questions are very important to ask but you have to seat and think and write many other queries that could be useful, for example:

– What is included in the sale?

– How long did the previous owners live in that dwelling?

– How old is this real estate?

– What do you like most  and what worries you about this property?

You will certainly think of plenty more questions to ask your estate agent as you tour your selected abodes. Always take a notebook and pen along with you so you can jot down notes as you look round and ideally take photographs as you inspect the houses as these will jog your memory when you come to make your final decision on the best abode for you in Italy.

 

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What are the fees involved in buying your dream home in Italy?

Let’s talk about a variety of fees you have to pay when you decide to buy your dream home in Italy!

Most property fees are based on the ‘declared’ value of a property, (rendita catastale) which is usually less than the actual purchase price or its ‘market’ value.

Fees are usually payable on the completion of a sale and range from around 9 to 15 % for a non-resident (the average is around 13 per cent), although they can be as high as 22 % for luxury properties. If you’re a resident, the fees associated with buying a property in Italy can be offset against income tax.

 

Registration Tax

Registration tax (imposta di registro) is the main tax on property. The amount payable depends on whether it’s your first and only home or a second home, whether it’s a new home and whether you’re a resident, as follows:

  1. Buyers of new properties don’t pay registration tax but must pay VAT (see below).
  2. On your first home, you’re eligible for a reduced tax of 2%. The property must be your principal home for residential use and be located in your present or future comune of residence (or in the comune where you have or plan to have your main place of business) and it mustn’t be classified as a ‘luxury’ home.
  3. The registration tax for non-residents and those buying second homes is 9%, so if you’re planning to become a resident in Italy it will pay to do so before buying a home there.
  4. If you’re buying an agricultural property, you must pay tax at 15%. When a property comprises both an urban building and agricultural land, tax is calculated separately for the building and the land.

Registration tax is payable on completion.

 

Land Registry Tax

Land registry tax (imposta catastale) is payable on all property purchases and, as with registration tax, the amount payable depends on whether it’s your first and only home or a second home, whether it’s a new home and whether you’re a resident. Buyers of second homes and non-residents pay 1% of the declared price.

 

Value Added Tax (VAT)

Buyers of new properties must pay VAT (IVA), which is levied at 4% for first home resident buyers, at 10% for second home and non-resident buyers, and at 22 per cent on luxury homes (with a rating of A1 in the property register). VAT may be included in the price by the builder or developer, but make sure you check this. If you build your own home, you pay VAT at 4%; if you buy from a company, you must pay VAT at 22% irrespective of the type of property. VAT at 22% is also levied on all professionals’ fees.

 

Notary’s Fees

Notary’s fees depend on the price of a property and are higher (as a percentage of the selling price) on cheaper properties. There’s also a fee for each page and each copy of a contract, plus fees for extra services such as taxes (e.g. tax stamps), expenses, legal advice and any payments made on your behalf.

If you buy a home through a real estate agent, he may have an agreement with a notary (notaio) whereby all notary’s expenses are incorporated into a ‘standard’ fee and agreed with the buyer. Med-Imm Srl offers you this type of service, check it with us!

 

Estate Agent’s Commission

Agents’ commissions (provvigione) vary considerably ( we usually apply from 3 to 5%)

 

Utility Fees

If you buy a new property, you must usually pay for electricity, gas and water connections and the installation of meters. If you buy a resale property, you must usually pay for the cost of new contracts, particularly water.

 

Other Fees

Other fees may include surveyor’s or inspection fees, architect’s fees and the cost of moving house.

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The Right Insurance For Your Holiday Home in Italy

Hello everybody! First of all you must consider that the current Italian legislation does not require insurance to be taken out for a private home or a rented apartment although if you have a mortgage, your lender will require you to have building insurance. This means that the owner him or herself decides if they want to run the risk of fire, water, gas or weather damage without taking out an insurance policy.

 

So…for your property in Italy you have two choices!

 

The first possibility is to insure your property in Italy with a specialised company in your homeland. The advantage is to have a policy written in your native language so it is easy to understand all documents, handle claims in your own language and you may also be more likely to be paid earlier.

The second option is to purchase a policy with an Italian insurer. It is suggested to choose this option only if you have a good understanding of the Italian language and are able to read correctly all the wording of an insurance document.

 

Italian companies tend to be cheaper but don’t cover earthquakes damage because it is the Italian Government that would pay out in the case of a claim. However, the length of time and the paucity of the payments involved in getting resolution in that case is such that it is worth simply attempting to avoid earthquake zones when purchasing.

 

It is always advisable to consult a leading, internationally known insurance company, which is also represented in your native country.

 

Household insurance generally constitutes a multi-risk policy for building and contents, although some companies require separate policies for fire and theft and for liability and others offer fire and damage with an extra premium for theft and liability.

Please also note that Premiums are generally higher for holiday homes due to their high vulnerability (particularly to burglaries) and are usually based on the number of days per year a property is inhabited and the interval between periods of occupancy.