1915 Capital Gains Tax?? Selling a Trulli.

Hi,

I may be in a situation where I need to sell my Trulli.

I have owned it from a ruin for 18 months, I spent a year getting ENEL to connect me to the grid & realise just by doing that as I was 700m away from nearest supply, that I have increased the value of the property.

I haven't completed any renovations as the Electricity was just connected, could anyone tell me where I stand with the Tax Man, having paid him a huge wedge when I bought it, I am not a resident in Italy.

Thanks

Dean

Category
Property Sales/Rental Advice

Submitted by Anonymous (not verified) on Thu, 11/17/2005 - 16:55

In Italy, if you sell within 5 years with a capital gain, the gain is taxed and you have to declare it with your annual "dichiarazione dei redditi".
The income is calculated subtracting from the final purchase price the original price, plus taxes and other fees payed at moment of the first purchase, plus all other expenses made for renovation, if you have the fiscal documents.
Of course I have no idea of what happens in England, nor if there is an agreement between Italy and UK to avoid double taxation.
hope it helps

Submitted by Anonymous (not verified) on Thu, 11/17/2005 - 17:29

"The income is calculated subtracting from the final purchase price "

yes , but

the income is calculated subtracting from the " final selling price "
writted on the public sale agreement ( Atto pubblico di compravendita ) -

Agreement between Italy and UK to avoid double taxation =
agreement signed the October 10- 1988
Law nr. 329 by 05/Nov/90 -
G.U.(publied on official gazette ) nr. 267SO by 15/nov/90

Ugo
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