CAPITAL GAIN TAX ON PROPERTIES IN ITALY

CAPITAL GAIN TAX ON PROPERTIES IN ITALY

The capital gain is a profit realized by selling a property at a higher than original price within 5 years since it’s been purchased.
It can be paid in two ways:
a) Either you define it to be a “different income” and add it to your annual income in the tax declaration, and it’ll be calculated according to the income tax rates* (see below).

b) Or you pay a fixed tax of 20% on the gain directly at the notary deed, which the notary afterwords will transfer to the state once the deed is duly registered.

No capital gain property tax is applied, if
1.a property is acquired as a gift (for free)
2.a property is acquired through succession and was owned by a person who used it as his/ her main residence
3.a property is inherited and put up for sale;
4.a property is boughts and sold after a period of 5 years;

* The income range in Italy:
up to €15,000 — 23% tax
€15,001 — €28,000 — 27% tax
€28,001 — €55,000 — 38% tax
€55,001 — €75,000 — 41% tax
€75,000 and more 43% tax

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