Questions about selling real estate

Question

Questions about selling real estate

Ian Curtis asks:

I sell the house near Rome-Anzio. Status is the first house. Spoken-3 years. I have a residence permit for 5 years. Bought for 140,000 euros. Restored. I sell - 180 000 euros. Questions: What taxes should I pay when selling? The agent said nothing, because this is the first house, and a lot has been invested in it, but is that so? Last year, spent more than 183 days in Italy, does the Italian bank report to Russia about the transfer and where? Under an agreement on the exchange of information or because of a residence permit? What problems may arise that I don’t know about? How to do it better?

02.08.2019

ITALY. Consultation

Taxes, fees

Expert answers (1)

Olga Moskaleva (Comosardinia-Estate) · Answer 1 · 2019-08-02T22:54

Good afternoon, Yang! With regard to paying taxes: if you used the tax break for buying a house when you bought your first house, then if you sell it earlier than 5 years from the date of purchase, the tax break is canceled and you will have to pay the difference in the amount of tax saved plus penalties 30% of this amount. The privilege is saved only if within 1 year after the sale you purchase another property and transfer the residence there. At the same time, the tax on income received from the sale of the house (the difference between the purchase price and the sale price) in your case most likely should not be paid, regardless of the sale price and how much you invested, but because the house has the status of the first house , that is, you purchased it for residence, and not for speculative purposes, even if you sell it before the expiration of the 5-year period. As for the exchange of information, you should check with a bank (independent), but as far as I know, the duty to report on operations in Italy to the tax service is assigned to non-residents of Italy, and if you are a resident of Italy, you should not declare anything in Russia, at least least about your operations in Italy.