The decree on tax simplification, approved by the Italian
government and being published in the Official Gazette, has
partially modified the recent discipline of tax imposed on property
located abroad.
This tax is payable at a rate of 0.76% on the value of real
estate located abroad, for any use by individuals residing in
Italian territory. The taxable amount is the cost resulting from
the deed of purchase or, failing that, the market value of the
place where it is located.
The decree provides, on this subject, the following changes:
a) The tax is not payable if the amount does not exceed EUR
200
b) If the property is situated in countries belonging to the EU
or in the country joining the European Economic Area (EEA), which
ensure an adequate exchange of information, the tax base is used in
the foreign country to fulfill any tax on property or transfer.
Only in the absence of these parameters can be used to enhance the
policy referred to above.
