Question: 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?
Answer: The income generated by renting an Italian property is taxed in Italy. Depending on the applicable bilateral treaty against the double taxation signed by Italy and your home country and other tax laws in your home country, Italian real estate rent might generate tax duties in your home country too. If this is the case, in most cases domestic tax law allows to use foreign real estate taxes as a tax credit to partially or totally offset taxes due domestically with respect to the same income, to avoid double taxation.
In addition to real estate income taxes, if the rental period is longer than 30 days, the rental contract is required to be registered with the tax office within 30 days from signing or from the starting date, whichever occurs first, and is subject to stamp duty (average EUR 32) and registration tax, which is 2% of the annual rent amount, with a floor amount of EUR 67.
Check also our article about Italian property rental duties.
Related information
- Italian property rental duties
- Property taxes
- Income Tax
- Double taxation
- ICI – Municipal Tax
- No bureaucracy for short rent
- Income Tax – Chart
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