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PROPERTY

Italian property news roundup: Gucci’s house on sale and second home tax deadlines

From a famous Tuscan villa on the market to an important deadline if you have a second home in Italy, catch all the Italian property news you may have missed in The Local's weekly roundup.

A view over the Tuscan countryside.
Are you dreaming of waking up to a view over the Tuscan countryside. Photo: Anton Sulsky on Unsplash

IMU property tax deadline is approaching

This year’s second instalment of IMU, or ‘Imposta Municipale Unica’ (Unified Municipal Tax), is due by December 16th.

IMU is a basic rate of tax that has to be paid to the Italian state, based on the value of the property.

You don’t owe this if your main residence is in Italy and you live in the country more than six months a year. Otherwise, if it’s your second home, you must pay this tax.

READ ALSO: What taxes do you need to pay if you own a second home in Italy?

Therefore, non-EU nationals without residency in Italy, including Americans and now Brits for instance, are allowed to spend 90 days out of every 180 in the EU.

This group of people with a second home in Italy would need to pay IMU.

It would also apply to a property you are renovating, for example, while you are living at another residence. Even though the second property may not be habitable, it is still a second property and so IMU taxes are due. This is important to consider for those planning to use the government’s ‘superbonus 110‘ to restore or rebuild a home.

You don’t need to pay IMU on your main home unless it is categorised as a luxury property, in which case, IMU is payable even if it is your main residence. Italian luxury property in the Italian tax system is defined by its residential category.

In this case, the cadastral categories A1, A8 or A9, for tax purposes are all luxury dwellings (stately homes, villas and castles).

You’ll need to pay IMU on luxury property. Photo by Mike Morgan on Unsplash

So, the second instalment of IMU for 2021 must be paid on the second home and on all properties other than a main home not classed as luxury.

The main house is the property registered or enrolled in the Land Registry as a single unit, in which the owner and the members of his family live habitually or reside ‘anagraficamente’ – that is, registered with the Anagrafe, the registry office.

EXPLAINED: Can second-home owners get an Italian residence permit?

However, there are some exceptions to paying IMU, such as on land owned in a mountain municipality, according to the reintroduced Circular of the Ministry of Finance of 9 June 1993.

Generally, how much IMU you pay depends on your property and the area you live in – payments are based on a percentage of the property value, collected by the municipality where your home is located, with part of the tax also going to the national government.

As a rough guide, you’ll need to take 5 percent of the property value and then multiply that number by a coefficient – a figure that changes according to property type.

This will give you a taxable base and from there, you’ll be charged anything from 0.4 to 1.06 percent of that figure, depending on the municipality where your second home is located.

You won’t get a bill for this: property owners need to abide by the deadline of when to pay and what coefficient your type of property is to be able to do the sums. IMU is paid twice a year and the last instalment was in June.

You can pay this via a form called F24 through the bank or Post Office.

To know exactly what your final IMU tax will be, it’s best to consult an accountant who can arrange the transaction for you too.

Gucci’s house is on sale

A historic Tuscan villa built in the 17th century and owned by the Gucci family is on sale for anyone with an eye for fashion and the funds to meet a designer price tag.

Described as “splendid” in the property listing, this iconic home is on the market for €750,000.

READ ALSO: Why now is the ‘best’ time to buy property in Italy

Located a few steps from the historic centre of San Miniato, a beautiful village on the green hills overlooking the Arno plain, the property sits between the major centres of Tuscany, Pisa and Florence.

It belonged to the Gucci family, well-known Italian entrepreneurs and founders of the Florentine fashion house that bears the family name. Over the centuries, the villa has hosted the most illustrious members of the two branches of the dynasty, including Guccio Gucci, who originated the famous brand by producing hats in San Miniato.

The home measures a considerable 540 square metres, its walls adorned with frescoes, “which recall the seventeenth-century origins of the villa and the eighteenth-century influence,” according to the property description.

Fancy living in the family home of the world-famous fashion house Gucci? Photo by Julien Tondu on Unsplash

There is also a vast garden surrounding the villa of 1,500 square metres, which also contains an old private chapel with a surface of about 20 square meters. Beyond that, the property comes with five hectares of land.

For those with even grander ambitions, the listing reveals there’s another 600 square metres of buildings on adjacent land that can be renovated using the government’s building bonuses.

READ ALSO:

This historic home has been on sale for 20 years and in 2005 it seemed on the verge of changing hands, according to news reports. Chinese buyers were very close to signing but then the sale fell through. The property continues to arouse interest, and it is currently still owned by the Gucci family.

The ‘best’ places to live in Italy

Wondering where to move to in Italy? A new study has revealed the best places to live in the country, rating all provincial capitals from the best to worst.

Parma was ranked top of the league for quality of life in the survey compiled by ItaliaOggi and Rome’s La Sapienza University.

This year, as well as last, the study also took into account how different areas have handled the Covid-19 health emergency.

MAP: Which are the safest parts of Italy to live in?

The pandemic didn’t affect all parts of the country equally. Some areas showed weak spots in dealing with the pandemic, found in all parts of the country from north to south. On the other hand, it highlighted the resilience of other areas.

Some of the usual suspects made it into the top ten, such as Bolzano and Trento, but other cities that have previously been way down the liveability leagues shot to prominence, including Bologna, Milan and Florence.

In case you missed it

Renovation plans are still in the balance for homeowners hoping to take advantage of the government’s hugely popular superbonus 110.

After Italian authorities gave the green light to next year’s Budget Law at the end of last month, many carrying out renovations didn’t get the news they were hoping for.

The plans aren’t favourable for those with single family homes, as Italy decided to extend the superbonus only for condominiums until 2023, meaning there isn’t as much time to move through construction projects.

EXPLAINED: How Italy’s proposed new budget could affect you

As things stand, based on the manovra – or financial measures – set out by the government, there are just over seven months left to access the superbonus for those with a single family home.

That could mean that those who are waiting for their building project to get off the ground or those stuck in a backlog caused by high demand for construction companies don’t have enough time to finish their projects.

Here’s more on how Italy’s building bonus uncertainty is causing headaches for homeowners.

If you have any tips, stories or thoughts on what we should include in the next edition of the property roundup, we’d love to hear from you. Email us here.

See more in The Local’s Italian property section.

Member comments

  1. Just a warning if you are thinking of installing an in-ground pool to even a modest property – it can lead to it being classed as a ‘luxury home’ and thus IMU will be due, even if it is ‘prima casa’. Above ground pools don’t have this issue.

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PROPERTY

Five pitfalls to watch out for when buying an old house in Italy

Tempted to snap up a little slice of Italy at a bargain price? The older the house, the more potential issues you'll need to be aware of.

Five pitfalls to watch out for when buying an old house in Italy

Italians themselves may have very little interest in buying or fixing up Italy’s many unwanted old houses, but international visitors are often swept away by the charm of these rustic buildings in romantic settings.

It’s easy to see why. The quirky structures, period details, and picturesque surroundings – not to mention low asking prices – inspire countless people worldwide every year to investigate buying an Italian home of their own, often as an investment or retirement property.

MAP: Where in Italy can you buy homes for one euro?

International interest in cheap Italian property has only intensified in recent years, with dozens of idyllic villages advertising ‘one euro’ homes and other low-cost property offers aimed specifically at foreigners.

Savvy buyers are aware that non è tutto oro quel che luccica (all that glitters is not gold), and quickly realise that these long-neglected buildings really cost somewhat more than one euro to buy and renovate. Still, some of The Local’s readers tell us these offers are still worth taking advantage of.

But whether you’re looking at spending a couple of thousand euros or much more on your dream Italian property, there’s always a lot to consider – including some issues that you’re unlikely to experience when buying a home in your home country.

These unexpected issues can turn the Italian dream into a bit of a nightmare, and sometimes lead to buyers having to abandon a purchase, losing money in the process.

But if you’re aware of potential pitfalls, you’re far more likely to be able to complete the purchase process with no major problems at all.

Property taxes and fees

Of course you’ll be expecting tax as part of the property purchase process, but Italian property taxes are particularly steep.

Experts say the total cost of buying in Italy will add approximately ten percent to the purchase price, and advise prospective buyers to budget accordingly.

There’s stamp duty, which is between two and nine percent of the cadastral value (valore catastale) of the property, with a minimum threshold of €1,000 even on the cheapest homes. Plus VAT at four or ten percent, land registry tax, and, if applicable, mortgage tax.

You can also expect to pay between one and five percent of the purchase price as a fee to the estate agent. In Italy agents work for both the buyer and seller – and collect compensation from both parties once the deal is done.

Then you’ll likely need a couple of thousand euros for the notary, plus a similar fee for any other agents you use, such as a mortgage broker, plus legal fees if a lawyer is involved.

See more about the ‘hidden’ costs of buying property as a foreigner in Italy.

Bickering relatives

It may sound unbelievable to non-Italians, but it’s not unusual to find that even the smallest old properties, or parts of them, are legally divided up between dozens of family members due to Italy’s inheritance rules.

One buyer The Local spoke to found herself having to deal with 22 people, all relatives, who each turned out to own a share of a small property she was buying in Mussomeli, Sicily; one of the first places in the country to sell off old properties for a euro.

Toti Nigrelli, the mayor of Mussomeli, said “having to negotiate the sale with multiple owners” was normal.

While this buyer impressively managed to negotiate the deal with all 22 parties, in many cases similar sales fall through because relatives – distant cousins, great-aunts, long-lost nephews – are often not on good terms, disagree over the sale, or can’t be traced.

At the very least, you will need to check the property’s records carefully to make sure there are no surprises in store – such as long-lost relatives turning up to claim the property back after you’ve bought it.

A trullo house befre renovation in Cisternino, Puglia. AFP PHOTO / GIUSEPPE CACACE

Illegal builds

Another thing that often astounds foreigners who buy property in Italy is the enormous number of illegal builds – homes that were built entirely without permits – on the market as well as the even greater number of houses featuring modifications which were never officially approved or recorded.

Illegal housebuilding in Italy is often thought of as a decades-old issue, but recent data shows that, in 2021, 15 houses were built illegally for ever 100 authorised. Illegal building is twice as common in the south of the country as in the north, and thousands of cases are detected every year – though few people are ever prosecuted.

If you buy a house with undeclared modifications, the buyer is usually held responsible for paying to regularise the paperwork with the town hall. If you catch this issue early enough – and not all sellers or estate agents will inform you about them – you may be able to negotiate for the seller to cover these costs before you make an agreement.

If however you end up unknowingly buying a house built without the correct permissions, or if you never regularise any unauthorised changes, the property will likely prove very difficult to sell on.

This is one of many reasons why buyers need to carefully check the catasto (land registry or cadastral records) of a property themselves, and have a notary check everything is in order.

Conservation rules

When you initially view and fall in love with that charming stone house in the historic centre of a gorgeous Italian hilltop town, rules and regulations are probably not the first thing on your mind.

But it pays to know that old homes featuring frescoes, loggias or ancient stone cellars, as appealing as they are, are often protected by Italy’s cultural heritage authority – meaning more red tape for their owners.

One reader was forced to give up her dream of buying a portion of a two-floor 1700s building in the village of Civita Castellana, Lazio, because it needed renovation work to make it livable – but the frescoed walls, decorated fireplaces and elegant stonework entrance were vincolati (under restrictions) due to Italy’s historic conservation rules.

READ ALSO: Tuscany or Basilicata? How Italy’s international property market is changing

In many cases, this means renovation work can’t be carried out at all, or will be subject to reams of paperwork and close monitoring from authorities known as the sovraintendenza belle arti. To make things trickier, rules can also vary by local authority.

If you think a property you’re interested in might be subject to these rules, it’s always wise to consult the local sovraintendenza at an early stage. And of course, you’ll want to get hold of the records of the property from the catasto (land registry).

Resale prices

The high taxes and costs involved in buying and selling a property in Italy are often said to be one reason why, for most Italians, the concept of climbing the property ladder doesn’t really exist in the way it does in some countries.

Italy’s property market is unusual in Europe in that house prices on average are relatively stagnant. With the exception of some types of property – such as new-build apartments and luxury homes – overall prices have risen little over the past decade.

This is partly because the Italian market is weighed down by a large volume of old, neglected properties in need of major work – hence schemes like the one-euro sales and the (formerly popular but now-unavailable) 110 percent ‘superbonus’ for renovations.

But overall, if your main motivation for buying an old Italian home and renovating it is profit, you’ll need to consider that the resale potential may not be what you’d hope. The exceptions to this are at the pricier end of the market, in most major city centres, and in tourist hotspots.

See more in The Local’s Italian property section.

Do you have any more tips on buying a property in Italy? We’d love to hear from you in the comments section below.

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