Capital Gains Tax in Italy

[DRumsfeld2000]

We are in the process of buying a vineyard property in Northern Italy and have now signed the initial contract. We have made this decision as we wanted to diversify our assets and have for a long time been seeking this kind of property. The property is a bargain as it is a distressed sale of a farmer and loans are very hard to get so cash is king.

Anyway, we are going to sell one of the vineyards off as it is surplus to what we want and we know that there are buyers for it. I understand that CG tax in Italy for property will be 20% and if you have owned the property for more than 5 years it does not apply. Does this also apply to vineyards?

Thanks in advance.

[shiny!]

Re: Capital Gains Tax in Italy

If you have the money to invest in foreign property, wouldn't it be better to consult with an account or tax specialist attorney in Italy than ask on an internet forum? Granted, this is iTulip and therefor special, but still, I would think a question like this deserves a professional answer.

[wayiwalk]

Re: Capital Gains Tax in Italy

Awesome. I can't help with the tax questions - but if you ever bottle some wine on your own, I will help grill the leg of lamb or some other suitable meal and hoist a few glasses!

PS - not sure what part of northern italy you are talking about - but Neil Rosenthals book "Reflections of a Wine Merchant" spends a fair amount of time talking about his work with vinters in more obscure areas of Italy...obviously there are other books on this subject, but that is one that came to mind.

[gwynedd1]

Re: Capital Gains Tax in Italy

If you have the money to invest in foreign property, wouldn't it be better to consult with an account or tax specialist attorney in Italy than ask on an internet forum? Granted, this is iTulip and therefor special, but still, I would think a question like this deserves a professional answer.

Perhaps that was the answer they needed.

[shiny!]

Re: Capital Gains Tax in Italy

I work for a property management company that periodically purchases commercial properties. The head trustee is a CPA, experienced in his field and one of the smartest people I've ever known, but he would never buy a property without having appraisers and his real estate attorney involved. It's just part of doing due diligence.

When buying property in a foreign country, I would think it's especially important to work with an honest broker and have an attorney go over all the contracts. They should be able to answer all questions, even the ones the buyer doesn't know to ask.

[DRumsfeld2000]

Re: Capital Gains Tax in Italy

shiny.

Fair comment and we do have a tax/legal company doing everything. However, I am sitting at home following an operation and just going through possible options in my mind and so posed a quick question. I thought that someone might have some information which may be useful.

[radon]

Re: Capital Gains Tax in Italy

shiny.

Fair comment and we do have a tax/legal company doing everything. However, I am sitting at home following an operation and just going through possible options in my mind and so posed a quick question. I thought that someone might have some information which may be useful.

I would think the probability of finding someone here with specialized knowledge regarding Italian taxes pretty is low as Itulip is primarily an English board.

[shiny!]

Re: Capital Gains Tax in Italy

shiny.

Fair comment and we do have a tax/legal company doing everything. However, I am sitting at home following an operation and just going through possible options in my mind and so posed a quick question. I thought that someone might have some information which may be useful.

That's good to know. Get well soon!

[cobben]

Re: Capital Gains Tax in Italy

We are in the process of buying a vineyard property in Northern Italy

Now I know nothing of Italy specifically, but I do of Spain, and from what I have heard generally the real estate markets throughout southern Europe seem to be more or less corrupt, so be very careful.

I suppose you have heard about the debacle on Cyprus?

Greece is only now creating a national land registry, Swedish bureaucrats have been called in to help sort things out - who really owns what?

[big67]

Re: Capital Gains Tax in Italy

Now I know nothing of Italy specifically, but I do of Spain, and from what I have heard generally the real estate markets throughout southern Europe seem to be more or less corrupt, so be very careful.

I suppose you have heard about the debacle on Cyprus?

Greece is only now creating a national land registry, Swedish bureaucrats have been called in to help sort things out - who really owns what?

In Italy we have a land registry since... 1800 something?
Recently I inherited a small estate and querying the registry I was able to track my ancestors purchase in 1930...

Purchasing real estate is generally a very safe operation, specially in northern italy
Peculiar to Italy ( and some other european countries ) we have a register of authorised notaries that will check that the property right been transferred is complete and free from previous rights, etc.

[dcarrigg]

Re: Capital Gains Tax in Italy

We are in the process of buying a vineyard property in Northern Italy and have now signed the initial contract. We have made this decision as we wanted to diversify our assets and have for a long time been seeking this kind of property. The property is a bargain as it is a distressed sale of a farmer and loans are very hard to get so cash is king.

Anyway, we are going to sell one of the vineyards off as it is surplus to what we want and we know that there are buyers for it. I understand that CG tax in Italy for property will be 20% and if you have owned the property for more than 5 years it does not apply. Does this also apply to vineyards?

Thanks in advance.

I'm certainly no expert here, but the NY Consulate seems to have a decent guide. Seems to me that the 5 year rule applies regardless of whether the land is used for residence or agriculture according to the guide, but check it out if you get the chance.

[DRumsfeld2000]

Re: Capital Gains Tax in Italy

Thank you for the information. I think that you are right about the five years but I ill confirm this with the relevant experts in due course.

wayiwalk: we will have to see how things go! For now someone else will manage the vineyards and orchards. For your information it is in the Piedmont region. As for making wine, I look forward to giving it a go but not for quite a while yet.

As for everyone else, thanks for your comments.

[doom&gloom]

Re: Capital Gains Tax in Italy

shiny.

Fair comment and we do have a tax/legal company doing everything. However, I am sitting at home following an operation and just going through possible options in my mind and so posed a quick question. I thought that someone might have some information which may be useful.

Can't help you with Italy, but if you ever want to farm in Uruguay I am da' man!

Do keep in mind most wine makers don't make much money at all. It is really a labor of love. there is presently a world win glut, and has been for some time. If you want to make money at this (as opposed to having your own boutique wine to impress friends and relatives alike), consider better farmland v. vineyards.

[cobben]

Re: Capital Gains Tax in Italy

Can't help you with Italy, but if you ever want to farm in Uruguay I am da' man!
Do keep in mind most wine makers don't make much money at all. It is really a labor of love. there is presently a world win glut, and has been for some time.

What is wine if not spoiled grape juice, so it should cost less than fresh grape juice . . .

. . . I recall telling my vintage French wine loving bartender educated daughter, who had bartendered in Nice for a few years before suddenly giving up a promising career to waste her life doing a doctorate in neurophysiology or something similar at the Karolinska Institute.

I am buying cheap but quite good Spanish table wine in tetrapacks for about $3.65 / liter here, that's including the 21% VAT. It's really better than most everything else except for the 8 - 10 year old Rioja reservas, which I will pay up for on occasion, but only to go with that nice leg of lamb.