Tax advisory
Property taxation
We advise you on the tax aspects of buying, selling, letting and renovating property and check which tax incentives you can use.
Service area Tax advisory
What matters to you
With real estate, details often determine the tax burden: whether you buy from a private individual or a construction company, whether it is your main home, how it is let and when it is sold. South Tyrol also has its own rules, for example on the municipal property tax and on letting to guests.
We advise private individuals, companies and investors, including those resident abroad. Involve us if possible before a preliminary contract, a binding order or the first payment, so that tax opportunities can be reviewed in good time.
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Purchase and sale
When buying a property, either registration tax (imposta di registro) or VAT is payable depending on the seller, in each case together with mortgage and cadastral taxes. Reduced rates apply to a main residence (prima casa) if certain conditions are met, for example regarding residence and other properties owned. Anyone who later loses eligibility, for example through an early sale without a replacement purchase, must expect a back-tax assessment.
When private individuals sell, a capital gain (plusvalenza) may be taxable if only a short time has passed between purchase and sale. Special rules apply to owner-occupied homes and to properties that benefited from certain renovation incentives. Before the sale, we check whether tax is due and how much.
Letting
Private individuals can have rental income from residential property taxed under income tax (IRPEF) or opt for the flat-rate substitute tax (cedolare secca). The choice depends on your other income, the type of lease and whether you wish to forgo rent increases linked to the inflation index.
Short-term rentals to guests involve additional obligations, such as registration with an identification code, guest reporting and the local tourist tax. In South Tyrol, the letting of private rooms and holiday flats is governed by provincial law. We clarify whether your letting is still private or already qualifies as a business activity.
- Comparison of income tax and substitute tax
- Registration of lease agreements and follow-up obligations
- Short-term lets and holiday homes
- Letting of commercial property
Renovation and tax incentives
In Italy, tax deductions are available for renovations, energy efficiency measures, seismic upgrades and the removal of architectural barriers, usually claimed in the tax return over several years. However, percentages, caps and requirements are changed almost every year by the budget law and differ depending on, among other things, whether the property is the main residence.
Depending on the incentive, specific payment methods, technical certifications or notifications are required. We clarify the tax requirements and coordinate the necessary documents with you and the technicians involved.
Ongoing taxes and cross-border matters
Properties in South Tyrol are subject to IMI (municipal property tax). It is calculated according to provincial rules and the regulations of the relevant municipality. We review the use of the property, the tax base and any available reliefs.
Anyone who lives abroad and owns property in South Tyrol, or lives in Italy and owns property abroad, must observe additional obligations, such as declaring foreign assets. We coordinate taxation between the countries in line with double taxation treaties.
Step by step
How we work together
Clarify the project
You tell us what you are planning: purchase, sale, letting or renovation, and how the property is to be used.
Tax review
We review the taxes due, possible tax benefits and risks and, where necessary, coordinate with the notary or technician.
Support implementation
We keep track of deadlines, payment methods and documentation so that incentives are not lost.
Tax return and supporting documents
We take deductions and income into account in your tax return and keep the supporting evidence for possible audits.
Frequently asked questions
Answers on buying, letting and tax incentives.
Can I use the first-home tax relief in South Tyrol while still living abroad?
This is possible under certain conditions. Relevant factors include your personal status, your connection to the municipality and any property you already own. Residence abroad or AIRE registration alone is not sufficient proof. We check the requirements before the purchase.
Do I have to pay tax when I sell my flat?
That depends on how long you have owned the flat, how it was used and whether certain renovation incentives were claimed for it. In many cases no tax is due; in others the gain is taxable. We check this before the contract is signed.
Is the flat-rate tax on rents (cedolare secca) worthwhile?
For middle and higher incomes it is often cheaper than income tax (IRPEF), and no registration or stamp duty is payable on the contract. On the other hand, no costs can be deducted and index-linked rent increases are excluded. We calculate both options for you.
Which renovation deductions currently apply?
The rules are regularly amended by the Budget Law. We check the position at the time of your works and tell you which documents are needed. It is important that you involve us before the works begin and before the first payments.
How can we help you?
In the initial meeting, we clarify your request and discuss what support you need.