LumenDo Italian tax residents pay tax on property they own abroad?
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Yes. Italian tax residents who own property abroad, or hold another real right over it, pay IVIE at 1.06% of its value, which is the purchase cost or, failing that, the local market value. Nothing is due if the tax is €200 or less. A main home abroad is exempt unless it is a luxury property, which pays 0.4%.
Key facts
| What | The law says | Source |
|---|---|---|
| Who pays | Italian residents who own property abroad, or hold another real right over it, for any use | DL 201/2011, art. 19(13)–(14) |
| Rate | 1.06% of the value | DL 201/2011, art. 19(15) |
| Minimum | Not due if the amount is €200 or less | DL 201/2011, art. 19(15) |
| Value used | The cost in the purchase deed or contracts; failing that, the market value where the property is | DL 201/2011, art. 19(15) |
| Main home | Exempt, with its appurtenances, unless it would fall in Italian cadastral categories A/1, A/8 or A/9; those pay 0.4% with a deduction of up to €200 | DL 201/2011, art. 19(15-bis) |
| Partial ownership | Proportional to your share and the months you owned it; a month of at least 15 days counts in full | DL 201/2011, art. 19(14) |
| Foreign taxes | Wealth tax paid where the property is located is credited; in EU/EEA countries with adequate information exchange, income and wealth taxes on the property are credited too, if not already credited under TUIR art. 165 | DL 201/2011, art. 19(16) |
| Payment | Under the IRPEF rules, including payments on account and balance | DL 201/2011, art. 19(17) |
How IVIE works
The law charges IVIE on property abroad held by Italian tax residents, whatever it is used for. The rate is 1.06% of the property’s value. The value is the cost shown in the purchase deed or contracts; if there isn’t one, it is the market value where the property is located. If the result is €200 or less, nothing is due.
The main home exemption
A home abroad that is your main home, with its appurtenances, is exempt, and so is a marital home assigned to a spouse after separation or divorce. The exception is property that in Italy would be classified in the luxury cadastral categories A/1, A/8 or A/9: it pays 0.4%, minus a deduction of up to €200 for the part of the year it is your main home.
Foreign taxes on the same property
The law credits any wealth tax you paid in the country where the property is. For property in the EU, or in an EEA country with adequate exchange of information, it also credits income and wealth taxes on that property that weren’t already credited against IRPEF.
Related questions
- Reporting: foreign property with no changes during the year need not be listed in the tax return, but IVIE still has to be paid (DL 167/1990, art. 4(3)).
Sources
Change history
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