The Italian State’s Superbonus to replace heating and insulation for free

Superbonus 110%, the complete guide to understand how it works and who can benefit from it The Superbonus is a subsidy introduced by the Relaunch Decree which allows the 110% deduction on expenses incurred in the period between 1 July 2020 and 30 June 2022 for interventions that improve the energy performance of a building (both condominiums and single homes ) by at least 2 classes or reduce the seismic risk. What exactly does 110% mean? Here is a concrete example: If you incur an expense of 10,000 euros, 11,000 will be reimbursed, which are recovered through installments, all of the same amount. But let’s see exactly what the guidelines for the Superbonus 110% are: how it works, who can benefit from it, which jobs are eligible for the subsidy and how to apply. Superbonus: when it can be requested The interventions that make it possible to request the Superbonus can be divided into two categories: principal, i.e. thermal insulation, replacement of air conditioning or anti-seismic systems, and complementary, i.e. admitted to the deduction provided they are carried out jointly with at least one of those in the first group. Here are the details of the deductible renovations and their respective spending limits. Thermal insulation interventions affecting the building envelope with an incidence greater than 25% of the surface. The maximum cost varies from € 30,000 for each apartment in a building with more than 8 residential units to € 50,000 for single-family buildings and condominium apartments with independent access. Interventions for the replacement of existing winter air conditioning systems with high energy performance systems. The maximum cost is 30 thousand euros for single homes, 20 thousand euros for condominiums with less than 8 units (to be multiplied for each of them) and 15 thousand for those with more than 8 units. Anti-seismic interventions included in the current Sismabonus with a spending limit of 96,000 euros per property unit as long as the homes are located in the seismic zone 1, 2 or 3. Complementary interventions, i.e. those that can benefit from the 110% deduction only if carried out together with at least one of the principal interventions, are the installation of photovoltaic systems and integrated storage systems, the installation of electric columns for vehicle recharging and the replacement of windows, roofs, floors and solar shading. The Superbonus is due for expenses incurred starting from January 1, 2021, also for complementary interventions aimed at eliminating architectural barriers. Who can benefit from the 110% Superbonus The subsidy can be requested by: Condominiums.  Individuals outside the exercise of a business, art or profession, who own or hold the property object of the intervention (owners, bare owners, usufructuaries, tenants).  Autonomous public housing institutes (Iacp). Housing cooperatives with undivided ownership. Onlus of social utility and voluntary organizations and associations of social promotion. Amateur sports associations and clubs limited to the work for the changing rooms. How to apply for the 110% super bonus? To be entitled to the benefit, you must comply with very specific legislation. It is necessary to ask a specialized technician for a certification, to be sent within 90 days of the end of the works and only electronically to the Enea site, which certifies the improvement of at least 2 energy classes through an energy performance certificate (Ape), ”use of materials that comply with the provisions of the law, compliance with expenditure ceilings and the fairness of the amounts spent. A similar certification is provided for anti-seismic “driving” interventions. In addition, the intervention must be paid by bank or postal transfer where the reason for the payment, the tax code of the beneficiary of the deduction and the VAT number of the recipient of the transfer are shown. How the deduction is divided The subdivision of the 110% deduction changes depending on when the work is carried out and the expenses are incurred. Works carried out between 2020 and 2021: 5 annual installments of the same amount. Works carried out by 30 June 2022: 4 annual installments of the same amount. In the case of condominiums or individual taxpayers, if 60% of the total intervention is completed by 30 June 2022, the 110% deduction will also apply to expenses incurred by 31 December 2022. Superbonus 110%: deduction or discount Taxpayers have the option of choosing, as an alternative to the direct use of the deduction in the tax return, a discount on the invoice by the supplier (which will recover in the form of a tax credit) or to transfer the credit corresponding to the deduction due to third parties, banks and financial institutions included. If you opt for the sale of the the credit must be requested from a Caf (Commission for fiscal assistance) or a qualified professional for the compliance visa for the data relating to the documentation: a certificate, that is, which includes all the documentation necessary to obtain the Superbonus (including the ownership and cadastral certificate, Ape pre and post works and technical communications). Those who only receive income subject to separate taxation or substitute tax can only avail themselves of the discount on the invoice or the assignment of the credit but not the deduction, because they do not have a gross tax to be reduced with it.

Italy, house prices up after the summer

0.7% over the quarter, 1.5% in one year. Discover the values ​​of your city. After the summer months, the average house price in Italy is 1,733 euros/ m2.Source: idealista.it. Housing prices reported by Idealista’s search service after the summer months rose 0.7%, to an average of 1,733 euros / m2. The annual trend has also improved, with a positive balance of 1.5%.For Vincenzo De Tommaso, head of the idealistic research office: “the lockout gave the decisive impetus to those who already had the idea of ​​moving, so that the demand for housing quickly picked up during the months of been fueled by historically low interest rates, limited supply, and families’ desire to move into homes with larger spaces to customize or update them to meet current housing needs. All of this has given owners the feeling that they don’t have to lower their claims to close operations, although this may not attract bids from potential buyers and thus slow the market in the coming months while waiting for prices to drop ”. Real estate prices in the regions The last quarter saw prices increase in half of the Italian regions, with Trentino Alto Adige (2.4%) and Lombardy (2.1%) leading the upward trend ahead of Veneto and Lazio, all two with increases of 0.8%. Among the declining regional areas, the largest decrease concerns Basilicata (-1.4%), followed by Marche and Abruzzo with decreases of 0.8%.Trentino Alto Adige becomes the region with the highest real estate values, with an average of 2,503 euros per square meter, ahead of Liguria (2,482 euros / m2) and Val d’Aosta (2,432 euros / m2), in a classification which sees in the lower part of the classification Sicily (1,064 euros / m2), Molise (919 euros / m2) and close Calabria to 909 euros. Real estate prices in the provinces Prevalence of decreases in 61 of 106 provincial markets analyzed. More than 80% of macro-zones remain in a range between -2% and 2%. The strongest increases in the quarter are due to Modena (5.5%), Milan (5.4%) and Verona (4.6%). On the other side of the table, we find Trieste (-4.8%), ahead of the provinces of Vercelli (-4.7%) and Messina (-4.2%). Despite the last slight quarterly drop, Bolzano (3,605 euros / m2) is confirmed as the most expensive province in Italy, ahead of Savona (3,104 euros / m2) and Florence (2,752 euros / m2). On the other hand, Biella (630 euros / m2) is the cheapest, ahead of Caltanissetta (724 euros / m2) and Isernia (743 euros / m2). Capital cities After the summer months, there is a slight prevalence of capital cities in a negative trend (58 centers out of 110 followed). The biggest drops are due to Nuoro (-4.9%), Macerata (-4.3%) and Monza (-3.8%). In contrast, Agrigento (9.3%), Lecco (5.9%) and Modena (5.6%) recorded the biggest rebounds.Among the big real estate places, Milan and Turin see the demands of the owners increase by 2.3%. Prices are also increasing in Palermo (0.6%) and Rome (0.4%). Florence (-0.9%), Genoa (-1.1%) and Naples (-1.3%) fell.

The coronavirus crisis could boost real estate in southern Italy

Southern Italy, a dream vacation place The sea is magnificent, the food, among the cheapest in Europe, is delicious, people are welcoming and hospitable, and have a certain joie de vivre. The number of people who got sick with coronavirus in southern Italy is an average hundred times inferior to the number of cases registered in the northern part of the peninsula. Clean-air air is probably playing a role Just look at the picture beneath. On the left you get the number of cases of coronavirus, on the right you got air pollution by particulates in Italy, The correlation is appalling. Real estate prices are incredibly cheap in southern Italy. I give it just 2 examples here. Both apartments that I chose are located at Ciro’ Marina, a charming little tone in southern Italy. There beaches have a pleasant fine sand, the sea is clean and marvelous, you can enjoy a tasty bit set for $5, a seafood meal would cost you around $12, a kilo of tomatoes or eggplants not even a dollar. The 1st apartment consists of 80 m² for $43,000, or €39,000 is located 50 meters from the sea and close to all the main services (supermarket, pharmacy, bar, pizzeria, bank / post office, etc.). The property consists of a spacious living room with kitchenette and balcony, two double bedrooms, one with a balcony, a bathroom with shower and a laundry room. Mosquito nets in all rooms, air conditioning with heat pumps, heating with independent boiler. The property includes a large attic that can be used as a storage room. The apartment is sold fully furnished. The 2nd apartment consists of 60 m² for $44,000, or €40,000. Excellent two-room apartment with sea view, with terrace, ideal as a holiday home, possibility of sale already furnished as in the photos, and consisting of bedroom with double bed plus a bunk bed, entrance with open kitchen, table and double sofa bed, bathroom with shower and washing machine. There are many great investments for a 2nd home, to spend great vacations in southern Italy. Just contact us.

Italy 2020 fiscal law to woo back skilled workers

On June 27, 2019 a bill called decreto crescita, (growth decree) passed in the Senate and became legislation in Italy. The purpose was to reinvigorate the stuttering Italian economy; but it could also have major impact on the ability of the Italian economy to attract rich foreign workers, for instance football players. Come back or move to Italy, and you pay almost no income taxes for 5 years The bill is being compared to the Beckham law, a decree which was signed into Spanish legislation in 2005, that enabled rich foreign workers such as footballers to benefit from a tax break. Given that David Beckham was the 1st footballer to benefit from such a tax break when he signed for real Madrid, his name is forever associated with this fiscal law. From 2005 until 2010, this major allowed Spanish soccer clubs to stipulate some of the most lucrative contracts in football. Now, Italian clubs could do the same. Thanks to Article 5 of the growth decree. The aim of this section of the bill is the return of the brains, as the Italian government is trying to stop the brain drain that has hurt they Italian economy, bringing back skilled workers who had migrated abroad. In order to do this, a 5 years tax discount has been offered to anybody who, having been resident at least 2 years abroad, comes back to Italy for a period of a minimum 2 years to work. It doesn’t matter if a person is Italian or non-Italian. It applies to all. At the beginning of 2020 the new law comes into force. Anyone who benefits from the tax discount, if leaves Italy before 2 years, will have to pay back the deduction obtained. For the general population, those benefiting from the tax reduction won’t have to pay any income tax on the 1st 70% of the income, or on the 1st 90% of their income if they move to the regions in southern Italy. A bonanza for football clubs However, the government amended the law for footballers. Their tax reduction is limited to 50%, no matter if they play for a club in northern Italy or in southern Italy. However this is still a significant discount for football clubs. Imagine Juventus would like to offer a player a salary of €9 million a year. Before this Beckham law, Juventus would have had to pay €17.5 million, because the entire sum would have been taxed at the highest Italian income tax rate of 43%, leaving €10 million after the 7.5 million was paid to the fiscal administration. Under the new fiscal legislation, Juventus would have to spend only €12.7 million a year, because only 50% of the 10 millions would be taxed at 43% tax rate, for a total of 2.7 million a year tax payment.

7% income taxes to attract retirees. Italy’s fiscal advantages.

Easier tax regime for retirees, the Italian novelty Italy wants to attract retirees and is determined to compete with countries like Portugal and Spain. The government grants, starting from 2019, fiscal advantages for individuals establishing their residence in Italy, but exclusively in the South and in towns with less than 20,000 inhabitants. Indeed, these are the places which most need newcomers, since they suffered from a slow but constant migration of their residents in the last two decades. Let’s see what the new retiree tax system is, who it is for and for how long. The new subsidized scheme provides for a minimum rate of 7% on foreign source pension income and any other foreign source income. It is intended for people, Italians and foreigners, who have been abroad for at least 5 years before moving to Italy and who want to live in the southern regions of Italy: Abruzzo, Basilicata, Calabria, Campania, Molise, Apulia, Sardinia and Sicily. And in municipalities with fewer than 20,000 inhabitants. The new regime is scheduled for the 2019 tax period. The new regime, provides also an exemption from reporting foreign asset and investment in annual income tax returns. It also exempts from annual property taxes on foreign property and foreign financial assets. A five years duration limit This convenient regime has a duration of only 5 years, starting from the moment when residence is transferred to Italy. This new scheme represents an opportunity for all those who have not resided in Italy for at least 5 years and who are receiving retirement income and other foreign sources of revenues, such as financial income, rents, etc. I added that actual convenience must of course be assessed on a case-by-case basis, taking into account the heritage / income situation, the family context and the State of origin. However for the measure to register certain results, it is important to reassure about the stability of the system and the adequate services. But not only. It is also essential to deploy specialized operators able to facilitate the transfer of residence and the treatment of different bureaucratic requirements.

Exemption IMU 2019, first home and second home

Facilitations or reductions not only for the main house News of the stability law of 2016: exemption of the IMU and TASI The new Stability Law of October 2015 introduces the abolition of IMU and TASI on the main house, provided that they do not fall under the A1, A8 A9 cadastral categories, namely luxury houses, villas and castles. The reduced rate for luxury homes, villas and castles The last three categories may, however, benefit, if they are used as principal residence, from a reduced rate of 0.40% which can be further reduced or increased by 0.2% by municipal resolution, as well as a deduction of 200 euros. The same goes for the outbuildings, one for each category C2 (warehouses, depots, cellars), C6 (parking spaces, garages, garages, etc.) and C7 (closed or open roofs). Local social housing units as well as those owned by construction companies with undivided properties will be exempt from paying the IMU as long as they are still used as main dwellings. Even those for university students will be eligible for the exemption. Exemption granted to the house of the separated spouse Another novelty concerns the exemption granted to the house allocated to the spouse as a result of the legal separation, but also in case of annulment or dissolution of the civil effects of the marriage. Italians enrolled in AIRE Even for AIRE registrants, there is some news as they will also be able to enjoy the benefits, but only for a house in case of purchase or usufruct with the corresponding dependencies (up to one for each category). see above) and provided that the local unit is not rented or loaned. If they have more, they can choose the one that asks for an exemption. Also with a specific municipal resolution, municipalities may also introduce other forms of facilities, within the limits of fiscal balancing objectives, that provide for reductions or exemptions for persons admitted to health facilities as a result of hospitalization, whether elderly or disabled. Foreigners residing abroad We see the case of natural persons residing abroad who own real estate in Italy for the purposes of facilities for IMU and TASI. It often happens that husband and wife have a house in Italy. The wife and her children moved to a residence abroad or vice versa, while her husband continues to reside in Italy. In these cases, it is necessary to determine whether the property in Italy can be considered as the main residence of the family and thus benefit, for IMU and TASI purposes, from the “first home” facilities. Criteria for an alien to be considered resident in Italy First of all, I remind you of the criteria for establishing a residence in Italy by a foreign person. In this regard, it is necessary to clarify how to apply the “first home” for the purposes of IMU (and TASI), specified the legislator, pursuant to art. 13 (2) of D.L. 201/2011 that “the main dwelling refers to the property, registered or entered in the land register of urban constructions as a single real estate unit, in which the owner and his family unit usually reside on a random basis”. Therefore, in the light of the above-mentioned regulations, property owned in Italy by natural persons (ie entire families) who do not reside can not be considered as “principal residence” and benefit as a such, exemptions IMU and TASI.

Criteria for determining the tax residence in Italy

The criteria for determining the tax residence of natural persons in Italy They are dictated by Article 2 of the D.P.R. 917/1986 (“TUIR”), which states that for the purposes of income tax, are considered to be residents of the State natural persons who for most of the tax period are registered in the population registers of the resident population, or have their residence or domicile in the territory of the State under the Civil Code. The conditions mentioned above are alternatives; this means that the existence of only one of them is sufficient to suggest that a person is qualified as residing in Italy for tax purposes. Residence for civilian purposes As expressly provided by the tax law, reference should be made to the concepts of the Civil Code which, in Article 43, provides that “the domicile of a person is situated at the place where he has established the seat of his business and the residence is where the person lives habitually”. Difference between residence and domicile Whereas the residence is linked to the permanence of the subject in a sufficiently stable place and with the intention of settling there (objective data), the domicile consists of the concentration of the affairs and interests of the person at a particular place without the need for his actual presence in that place (objective data) and the desire to establish and maintain in a particular place the main “center” of the generality of relations (subjective data). The notion of interests to which reference should be made, once limited to the economic and financial sector of the subject, must be understood as referring, by unanimous jurisprudential interpretation, to the moral, social and family sphere of the subject. With regard to the temporal aspect, the criterion retained by the legislator is that of the temporal prevalence during the tax period. With regard to the precise definition of the tax period, reference is made to Article 7 of the TUIR according to which the reference period is therefore the calendar year. Residents who have been in one of the above conditions for at least 183 days (184 days in leap years) are considered residents. Tax havens In this regard, the legislator has recently introduced paragraph 2-bis of Article 2 of the TUIR which states that ” are considered as residents, unless proven otherwise, Italian citizens removed from the population register of the resident population and transferred to states or territories other than those identified by decree of the Minister of the Economy and Finance … “In practice, Italians who have transferred their homes and / or their residences to tax havens are considered as residents in Italy, unless proven otherwise. Residency in tax havens To be complete, note that the above-mentioned list of countries, “tax havens”, may be updated in accordance with the guidelines of the OECD and other international and / or community organizations. In this regard, we mention some of the preferential tax countries included in the above-mentioned list in 2011 to name a few: Andorra, Bahamas, Barbados, Bermuda, Philippines, Hong Kong, Lebanon, Liechtenstein, Macao, United Arab Emirates , Monaco, San Marino, Singapore, Switzerland, Vanuatu.

Buy an auction house in Italy and save 20%

Buy an auction house in Italy with or without bank loan Real estate auctions are a good opportunity to buy quality property at affordable prices, stipulating, if necessary, even a special mortgage. Real estate auction: how does it work In any case, it is always possible for those who know how to choose, to find good buying opportunities in real estate auctions, even if the available liquidity does not always make it possible to realize the real estate dream. In this case, it is possible a mortgage loan by auction. When a property is auctioned as part of a legal proceeding, its selling value may fall by 20% of the market value, which is a benefit from the point of view of the accessibility of the purchase. The amount financed by the mortgage can instead reach 100% of the value of the sales and 80% of the value of expertise, thanks to an agreement between Abi (Italian Banking Association) and the courts (the list of participating banks is available on the Abi site). Before establishing the amount of a mortgage by auction, it will then be up to the forensic expert to set the value of the property, once established its cadastral parameters and general conditions. These characteristics will be recorded in a document that each participant in the auction will be able to consult. The court then sets the base price, the filing date and the duration of submission of tenders, as well as the date of payment of the balance. Information, these, which are made public in the court register and with advertisements in the sections devoted to auctions in newspapers and other media. Loan auction: no notary fees Once the property is granted, the winner pays the balance: if he wants to buy by loan, the signature of the latter is done at the same time as the transfer of ownership decreed by the judge (which does not involve notary fees, which constitutes an additional advantage). The loan is then granted only on the condition that the participant in the auction, who must have signed and presented at the auction stage a preliminary document to this effect, actually gains ownership. If the award does not take place, the preliminary document does not imply any obligation. If the loan is not sufficient to cover the total cost of the purchase, the borrower will have to cover the remaining part (with its own cash or with a loan or mutual liquidity). Mortgage bids, like all other mortgages, will have an amortization period and procedures similar to “traditional” loans. In addition, if the property purchased will be a first home, it will receive the associated tax benefits.

Industrial production increases, boding well for real estate

Increase in industrial production in June. According to Istat, the Italian State Statistics Institute, the seasonally adjusted index rose 1.1% from May, adjusted for calendar effects. In June 2017, the index increased in trend terms by 5.3% (working days are 21, as in June 2016), at the upper end since the end of last year. On average for the quarter of April to June 2017, production increased by 1.1% compared to the previous three months. On average, for the first six months of the year, production increased by 2.2% compared to the same period last year. The positive trend continues for the Italian industry, after positive data were also recorded in May. The recovery is already influencing the real estate market Indeed, if we look at the property prices of the last 24 months, we note that the stabilization of the Italian real estate market is confirmed, as is the economic recovery. Prices remain at fairly low levels compared to the pre-crisis level of 2008, so we can do good business by buying real estate in Italy. The automotive industry is doing particularly well The acquisition of Chrysler and Jeep by Fiat is bearing its fruits Leap of production in particular in the automotive industry. Italian car production in June increased by 19.9% ​​over the previous year, according to Istat. The average growth in the second quarter, compared to the previous period, is 4.4%. “This is the sector that drives industrial production this month,” said the Institute of Statistics.

What attracts foreign investment to Italy

Foreign investment in Italy, latest trends There are several factors that could have a positive effect on the attractiveness of Italy, but the necessary reforms must be carried out. Italy is becoming less and less attractive to foreign investors. The country loses positions in international rankings, and the AIBE index, developed by Censis (the National Research Institute) with the Association of Foreign Banks, is down to 40.3, from 47.8 in 2016. Being given that 100 is the maximum value, Italy is therefore considered to be a country where investing is not very practical: among the main causes are the tax burden, the slow times of the civil and regulatory bureaucracy and the justice. The most attractive are China and Germany, followed by the United States and India. Nevertheless, we can remain optimistic However, there are several factors that could have a positive effect on the attractiveness of Italy, from the Industry Program 4.0. Even Brexit could favor Italy, while the Trump Presidency is seen as a negative factor, as well as domestic political instability. Strengths remain for fashion and luxury investors (91.3%), food (60.9%) and mechanics (60.9%). They are followed by tourism and pharmaceuticals. Among the internal factors, of great importance is the quality of human resources. The main mode of investment is indicated in the merger and acquisition, for the prestige of its brands, the quality of products and services and the acquisition price considered relatively low. It is hardly the case to note that even real estate prices are relatively cheap, especially in some areas. Residences on the sea front can be found around 1000 € per square meter, especially in the south of the peninsula. In short, Censis concludes, Italy’s external perception is better for the country’s structural aspects such as human resources, infrastructure, the banking system and the flexibility of the labor market. While investors remain chilly in view of the aspects that involve the public administration. What slows down investment may disappear in the long run If we look at the last administrative elections in mid-June, the extremist parties lost ground. This could allow the governing parties to carry out the reforms that Italy needs. On what Italy should bet to improve their “convenience framework”, as defined by the Censis survey? For the vast majority of respondents (who are entrepreneurs, managers, banks and foreign correspondents), it is essential to continue the reforms: 72% declare it. The reform of public administration, the simplification and certainty of a more effective fiscal policy, the reform of the civil justice, continue to return to the center of the concerns of the foreign investors.