If you are buying a property in Italy to let it out and receive income, there are several things should know. Each Italian region has its own regulations and requirements when it comes to letting out your holiday home. It is important that you are fully informed of the situation in your chosen area. Depending on the location of your property and the amount of units you regularly rent out, you will either be classed as a commercial or non-commercial landlord. These both carry different obligations and we recommend you consult a business consultant to ensure you understand the obligations and can fully comply.
Here are some of the best tips for holiday lets in Italy.
- Taxes on rental property in Italy must be paid in Italy.
- By law in Italy, home owners must file a tax return in the country.
- The tax is progressive (if the amount of the rent does not exceed 15,000 euro the tax is 23%).
- Payments are due to those relating to income statement (16 June and 16 November).
- Change your home insurance to reflect that the property is being rented out.
- Inform your local town hall that your home is going to be rented out.
- Make sure that you declare the income earned on your Italian tax return (if you have a mortgage that should be deducted before it is decided how much).
- Decide which belongings are valuable and make them safe, but try to keep the property homely, attractively decorated and well equipped.
- Decide how and at what stage you wish to be sent payment of the deposit, damage deposit and balance.
- Post as many good quality and recent color photographs as you can of the most relevant parts of the property. A bad photograph can seriously jeopardize the chances of attracting people to even the loveliest property.
- Give maximum information regarding rental conditions; what they can expect from the property and you, and what is expected of them.