Whether looking for an investment property or second home, or starting a new life in the area, why not consider the beautiful Italian Riviera?
The breathtakingly beautiful landscape, an annual average of 300 days of sunshine, and the convenient proximity to the international airport in Nice, makes the Italian Riviera an attractive location for investing in a second residence or holiday home.
Many investors tend to only focus on the Côte d’Azur, yet it is the Italian Riviera, with its romantic hinterland, which offers a wider spectrum at much more attractive prices and financial conditions. Just a 30 minute drive from Nice and 20 minutes from Monaco, here you are treated to nature in all its beauty, picture perfect mountain villages surrounded by olive groves and woodland, friendly locals and the best of Mediterranean cuisine.
A wide variety of properties ranging from majestic seafront villas and apartments, attractive country houses with Mediterranean gardens and private olive groves, charming old townhouses to building land offering the opportunity to create your very own dream property, are all available under a much more attractive and beneficial tax regime.
Unlike France, the basis on which stamp duty (9% for second homes, 2% for first homes) is calculated in Italy, is the land registry value and not the purchasing price. The land registry value is generally much lower than the market value, which works out as a major advantage as you pay much less in taxes even if the land registry value of your property is substantial.
The notary fees in Italy amount to 1.5 – 2% of the purchasing price. The annual base tax IMU for places of first residence was abolished in 2013 and the assessment rate for second residences is 7.6 per mill. It is at the discretion of the local communities to raise or lower the tax by 3 per mill. The land registry values are being multiplied by a co-efficient of 160. To give an example: the annual base rate (IMU) for a country house in a rural area with 80 sq.m. in living space and valued at a land registry value of €45,300 (purchasing price: €210,000) will amount to just €435 per year.
The speculation period for real estate in Italy is 5 years. Should you re-sell a property within this period, a capital gains tax of 20% on the additional proceeds will apply. Italy’s inheritance tax laws are also worth considering as spouses, children, and grandchildren have a tax exemption allowance of up to €1,000,000. The current rate of taxation is 4%.
If you would like to know more about investing in property on the Italian Riviera, please contact Peggy Peters and her team in TERRA ITALIA on +39 0184 206 925, or send them an email on firstname.lastname@example.org. They will be only too glad to discuss your requirements with you, without any obligation on your part. They also offer a full service during and after any sale process.
All photos © TERRA ITALIA