Former medical practitioner Dr. Jonathan “Jon” Vrban now works as a real estate broker in Las Vegas. A world traveler, Dr. Jonathan Vrban went through the complex process of acquiring a second home in Rapallo, Italy.
For many Americans, buying a house in Italy is a dream come true that allows them to experience the beauty and vibrant culture of that country whenever they wish. However, people should not make the decision to purchase a home in a foreign country without first thinking through all the manifold financial commitments such an act entails. Prospective buyers ought to decide early on if they plan to live in their Italian home as a resident or use it as a holiday getaway. The distinction is not just a matter of taste, as it substantially impacts the taxes a home buyer must pay. For example, if a buyer is not planning to become a resident within a year and a half of the purchase, there is a 10 percent tax on the cadastral value, the value set by the town council where the home is located. However, if a person acquires a home as a residence, and if this is the buyer’s first Italian property, only a 4 percent tax applies. If the buyer of a house in Italy is a company and not an individual, then taxes are usually higher. This is because for companies purchasing a property, there is a 9 percent tax based on the sale price as opposed to the cadastral value, which in most cases is substantially lower than the sale price. Therefore, acquiring an Italian residence as a company will cost more than acquiring one as a private individual. Other financial considerations come into play for a foreign home buyer in Italy. For instance, buyers will need to pay a 1 to 2 percent notary fee, may have to pay a translator if not proficient in the language. They should also take into account regular fees like those for trash and utilities.
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AuthorBased in Honolulu, Hawaii, Jonathan Vrban maintains involvement in a vast array of professional and personal projects, honing his talents as a writer, chef, and gardener. Archives
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