Hi Everyone, here's a first post:

A relative has a property in Friuli owned 1/3 by themself and 1/3 each by a brother and sister.

The brother and sister have renounced any claim to the property, but the property has not been formally transferred to the relative.

Question is what are the costs associated with a property transfer? Are notarial/legal costs based on property value, and if so, in general how are they calculated? What other costs go along with a transfer of the property? In Canada there is mutation tax based on the value of the property. Does this exists in Italy? Does the relative have to pay capital gains tax on the fair market value of the portion being transferred?

Are there any other costs that are involved?

Thanks.
Tim.

Hi Tim...

Can you tell me which of the following applies:

Was the property inherited?
was it received as a donation?
or was it purchased by your relatives?

__________________
CJ
Magical Marche &
Luchetti & Partners Studio Legale Tributario

The property was inherited by the three siblings in equal parts from their parents over twenty years ago.

Thanks.

Hi my name is Christiano
Did anyone answer you question about the taxes? I am trying to learn all I can before I buy a house in Italy.
Thanks

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I never received a response to my query.

I too am waiting for that answer How I wish someone would send you something.

Christiano

Sorry I haven't been on for a while. I'll post an answer for you shortly.

Here's the answer:

2/3 of the property can be transferred to the third sibling either by donation or sale, depending on whether the other 2 want to make any money or not.

In either case tax (inheritance tax or imposte) will be paid, and the amount of tax will be commensurate with the valore catatstale of the property. There are, however, tax breaks for a prima casa. In the case of a sale between siblings, the tributary costs will be higher, although in the case of a donation tax is exempt for values up to 100,000 euro.

Without knowing the full details of the property, I cannot provide any precise information. It is very likely that capital gains will not apply.

The cost of a Notary will vary, and if you need a translator during the Atto Notarile, then this will cost extra. If the owners cannot attend the Atto Notarile, then the most cost effective way is to appoint a special power of attorney to complete the formalities with the Notary.

__________________
CJ
Magical Marche &
Luchetti & Partners Studio Legale Tributario

Christiano...

Will you buying as a second home, or are you going to take up residency? the transfer costs will depend on these two options.

__________________
CJ
Magical Marche &
Luchetti & Partners Studio Legale Tributario

After long talks about "a 2nd home in Italy we have let that dream go But we are still planing a trip this Fall 30 Days. That is if the USA dosen't totaly go under, the way this Present is spending.

Now our reson is the trip to and from Italy 15 1/2 hr
by ,buying in Costa Rica we will only have a 2:10 hr trip. hell we can come home for lunch LOL Then the cost 5ac around 15-20 thousand US (not on the ocean) we only have 100,000 for this deram so we need to use it well.

I can't thank you enough for the info.& reply

Christiano

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Christiano