1.  Due diligence costs for the purchase of real estate
    1. Municipal search
    2. Cost
    3. VAT
    4. Utility search (each service)
    5. Cost
    6. VAT
    7. Land registry search (per search)
    8. VAT
    9.  Company search, per company
    10. VAT
    11.  Survey/Valuation fee, approx
    12. VAT
    13.  Phase 1 Environmental survey
    14. VAT
  2. Costs associated with a contract for purchase of real estate and registering title
    1.  VAT on price
    2. Cost
    3. VAT
    4.  Transfer duty
  3. Tax or duty on the acquisition of shares in a company owning real estate
  4.  Capital gain taxation on future disposal of real estate or shares in a company owning real estate
    1.  Tax on capital gains on the disposal of the real estate itself
    2.  Tax on capital gains on the disposal of shares in a company owning real estate

jurisdiction

Italy

1. Due diligence costs for the purchase of real estate

Cost

Time-based cost plus out-of-pocket expenses (e.g. for administrative fees, copies).

VAT

22%

1.2 Utility search (each service)

Cost

Variable: depends on time spent

VAT

22%

VAT

22%

1.4 Company search, per company

VAT

22%

1.5 Survey/Valuation fee, approx

VAT

22%

1.6 Phase 1 Environmental survey

VAT

22%

2. Costs associated with a contract for purchase of real estate and registering title

2.1 VAT on price

Cost
  1. Sale of commercial property by VAT-registered individual or entity: fixed amount of EUR 200 regardless of whether or not VAT applies.
  2. Sale of non-commercial property by VAT-registered individual or entity: if sale is VAT-exempt 9% of value of the property; if sale is subject to VAT, fixed amount of EUR 200.
  3. Sale of commercial or non-commercial property by non-VAT registered individual or entity: 9% of value of the property (2% in case the property becomes the main residence of the buyer).
VAT
  1. If not VAT-exempt, VAT at a 22%, or 10% rate
  2. If not VAT-exempt, VAT at a 22%, 10% or 4% rate
  3. Nil

2.2 Transfer duty

3. Tax or duty on the acquisition of shares in a company owning real estate

Registration tax at fixed rate of EUR 200 on transfer of shares (SPA and SAPA companies) or quotas (SRL companies).
Transfer of shares in non-listed companies is also subject to a 0.20% tax on financial transactions.*

4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate

4.1 Tax on capital gains on the disposal of the real estate itself

  1. If the seller is a resident company: 24% + 3.9% (standard).
  2. If the seller is a non-resident company without a permanent establishment in Italy or a non-resident individual:
    1. within five years from the acquisition 24% (company) and 23%–43% (individual) or 20% (company/individual if option is elected in the deed of sale). Local extra charges usually apply to individuals;
    2. after five years from the acquisition: not taxable

4.2 Tax on capital gains on the disposal of shares in a company owning real estate

  1. If the seller is a resident company: 24% (95% exemption may apply only if certain conditions are satisfied)
  2. If the seller is a non-resident company without a permanent establishment in Italy or a non-resident individual:
    1. disposal of a “qualified” participation: 24% calculated on 58.14% of capital gain (company) until 31 December 2018; progressive rates from 23% to 43% calculated on 58.14% of capital gain (individual) *until 31 December 2018.
    2. disposal of a “non-qualified” participation: 26%; not taxable if the seller is resident of a country that allows exchange of information with Italy or if the participation is in an Italian resident listed company