Two new Italian taxes are born

Alert for all those resident in Italy with property or financial interests overseas. The Italian tax authorities have introduced two new taxes on overseas assets: one is on property, so is bound to catch any foreign nationals who maintain properties “back home”.

The rate of tax is 0.76% of the value of the property, either as stated in the purchase documents or, failing this, at market value. This means that someone with a house which they bought for the equivalent of €150,000 will be required to pay €1140 a year for the privilege.

A second similar tax applies to any financial assets held abroad – e.g. shares, bonds, even savings and current accounts. These will be taxed at 0.15% on the value of the asset in the current tax year. Again, a person holding a nest-egg of €150,000 in an overseas account will be required to pay €225 to the Italian tax authorities.

As the taxes are retrospective in effect, they already apply to 2011 and will therefore be included in the next tax return due in June this year.

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