Italy’s enacted a new tax on real estate properties located outside of Italy. The tax is charged at 0.76 percent rate on purchase price of fair market value. Individual taxpayers owning foreign real property directly are liable for the tax. Apparently, the tax does not apply to real property owned indirectly through foreign investment or management companies.
New Bill Aimed At Introducing Flat Tax on Italian Real Estate Income
By Marco Rossi on
The bill on tax federalism currently under discussion in the Parliament would introduce a new flat 20 per cent tax on Italian real estate income. That would benefit foreign investors who are currently taxed at 30 per cent rate under most tax treaties. The new provisions would not apply to foreign real estate income and might be challenged as violating the non discrimination and free movement of capital provisions of EU treaty.…