As a non-resident, am I liable to file tax returns in Italy?
All non residents that own property in Italy have an obligation to file tax returns. If you let your property, you will need to file an income tax return to the Italian Revenue, and even if you do not let your property and it is un occupied, there will be tax returns due.
I own a property in Italy that is un-occupied, am I still liable to file tax returns in Italy?
Un-occupied real estate In Italy is subject to municipal tax (Rendita Catastrale) and is based on imputed or notional income, the square metre of your property and the location. It is a small tax and ranges between 0.4 – 0.7%
What are the income tax rates in Italy for non residents?
The income tax (IRE) rates in Italy range from 23% for income up to €26,000 and 43% for income up to €100,000+
What is the deadline date for filing tax returns in Italy?
The deadline date for filing tax returns in Italy is the 20th June each year.
What are the penalties for late filing?
If you file your income tax return for Italy
past the deadline, within thirty days,
you will be fined 15% of the tax due,
after thirty days the fine can range anywhere from 120 to 240% of the
taxes due.
What are the allowable expenses on my Italian tax return?
There is a flat rate of 15% allowable for repair and maintenance
expenses on Italian tax returns, this is taken from the gross income. Donations
to Universities, the art societies, medical research will attract 19% relief.
Is mortgage interest relief allowed as an expense on my Italian tax return?
No, mortgage interest relief is not allowable for non residents in Italy
What is the Capital Gains Tax (CGT) in Italy?
Gains from the sale of your property in Italy, that has been held for more than five years are not taxable. Gains from thesale of property held for less than five years are taxed as income. Capital
gains tax in Italy is calculated as selling price less acquisition costs and related expenses.
Do I need a tax ID number in Italy?
In order to buy property in Italy, non residents should be registered with the Italian Revenue, by filing for a tax i.d number (Codice Fiscale).
Non- residents who have produced income or possess assets in Italy are obliged to pay taxes to the Italian State, in order to file tax returns you must have a Tax I.D number. The Codice Fiscale is a unique identity code devised from your name,
date of birth and place of birth.
How can I pay my taxes in Italy?
Income tax can be paid in two six monthly installments, with a 6% interest
rate applicable. Payment is due on the last day of each installment period. A
portion of the interest due must be payed with each installment. You must note
on your Italian tax return that you intend to pay installments. All Italian tax
returns must be paid through an Italian bank account, using your IBAN number.
What is the form 24?
For the payment of Italian tax returns, the Form 24 must always be used.
The document is a payment form and includes the final liability of your Italian tax return,the form includes both income tax liability and ICI tax liability.
