TAX ADVANTAGES FOR OWNERS OF HISTORIC HOMES IN ITALY
Q: what is the definition of an “historic home”. A: a building which is listed by the “Sovraintendenza dei Beni Culturali” the Italian government body responsible for the listing and protection of buildings of historical and /or architectural/artistic interest. Many of the owners of such properties belong to ADSI ,the Association of Italian Historic Homes.
The principal fiscal benefits enjoyed by historic homes, and listed in the legal code (Codice dei beni culturali e del paesaggio – Legislative Decree 42 of 22 January 2004) are as follows:
GRANTS
The law allows for straight grants of up to 50% of the cost of necessary building work carried out and authorised by the Sovraintendenza, in return for which the owner must agree to open part of the property to the public usually for one half day in every month.
DIRECT TAXES
IRPEF tax will be calculated on the lowest possible building registry value in the area where the building is located.
Favourable treatment applies to rental income from such properties when declared for income tax purposes.
19% of the cost of any restoration work authorised by the Sovraintendenza, is tax deductible, in addition to to the 36% deduction available for such work on normal unlisted properties.
INDIRECT TAXES
Stamp duty on sale is at a reduced rate of 3% of the building registry value.
Inheritance tax has been abolished for all properties.
Donation of a property other than to close family members is tax free but subject to maintaining the property in good condition and not re-selling within 5 years.
