Q. I just bought an Italian property. When I am not in Italy I would like to rent it for short periods, or give it for free to friends. Would this imply tax duties?
A. The income generated renting an Italian property is taxed in Italy. Depending on the applicable international treaty against the double taxation, it might generate tax duties in your home country too. Also, if the rental period is longer than 30 days, the rental contract shall be registered with the tax office subject to stamp duty (minimum EUR 29.24) and registration tax (2% of the rental, with a minimum of EUR 168). In any case, if the property is given to either guests for free or tenant for payment, you will be expected to submit an occupation form to the local Police office providing the occupier’s personal details. If the stay lasts no more than 30 days, no registration, stamp duty or Police submission applies.
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