Costs & taxes

It is rather impossible to found a business or a house in Italy without investments and costs. This, however it is indeed possible to get a clear picture in expected investments additional costs and taxes.  For detailed information on taxes and purchase costs of a house or takeover of a business, we direct you to our extensive brochures.

Expenses to be paid for by the buyer

The expenses to be paid for by the buyer consist of, amongst other, taxation costs, mortgage costs, conveyance costs and notary costs. Next to that there are other costs, dependable of your situation and the property you intend to buy.

Loans and mortgages

An increasing number of Dutch & UK banks offer mortgages for foreign private and business property. Take plentiful time, before you intend to buy, to contact various banks about their products and offers.

Business property

However difficult it is possible to finance the acquisition of a business in the hotel and leisure business, like an Agriturismo, a B&B, campsite or hotel. It is advised to take into account a substantial private financial contribution. This usually totals up to 60% of the complete amount. The external financing is of course dependable on the return on sales, the size and the growing potential of the business and the value of the property.

Private property

Bear in mind that mortgages of 100% (or even 120%) are difficult to obtain. It is possible to obtain a mortgage from some Italian banks as well. Even though today some Italian banks even offer mortgages of 100% of the taxed value, however you better expect a mortgage with a maximum of 70% of the value of the property. The golden rule to finance private property is that the annual costs for the mortgage and loans should not exceed 30% of your annual total income. Next to that, most financers require a minimum annual income of €50.000,-.

Living expenses

 The living expenses in Italy are comparable to the living expenses in Western Europe. Except for costs of gas required for heating and cooking. The price of 1cubic meter (m³) gas is nearly three times as high as in the Netherlands or the UK. The use is also higher compared to northwest Europe. This is due to the lower heating value (expressed in BTU) of the gas.

Insurance

Your “Italian Casale” can be insured in Italy as well as with a British insurer. The costs may differ per insurer and per kind of coverage.

Maintenance

The maintenance costs are depended on the state of the property, your own comfort desires and whether you do the job yourself or contract it out. Take into account that the do-it-yourself market in Italy is by no means as developed as it for instance is in the UK.

Restoration

Quite a lot of property is in need of at least some restoration. For all restorations you need permits that are based on a plan drawn by an official technician (“geometra, ingegnere or architetto”). The average costs in case you hire a construction company vary from EUR 900,00 to 2000,00 per m², dependent  on the content of the plan and the materials you choose. The standard of craftsmanship in Italy is very high. You can make good arrangements with them, but it will be quite a task to stay within the budget and time limit. It takes some trust to have them working at the house in your absence.

Taxes

Several private and business taxes are levied. A couple of examples are: Property tax or “Imposta Communale sugli Immobili” (ICI) varies between 0.4 and 0.7 % of the assessed value as stated at the land registry (“Catasto”), and must be paid in December. Waste taxes or “Tasse di Rifiuti” (TARSU), are dependant on the number of inhabitants and the use of the property (seasonally/all year). TARSU varies from 0.2 up to 0.4% of the total surface of your property. Communal income taxes or “Imposta sul Reddito delle  persone fisiche” (IRPEF) is only levied for the income that is produced in Italy. You can also consult the tax website of the Agencia delle Entrate.