What are the rules of renting ones property a (non bed & breakfast to a non Italian resident)
I am keen to know, if there are any thresholds/limits of tax free income. Is the owner allowed to deduct expenses that have been incurred wholly, exclusively etc.
I have met a few commercialistas and not been able to get a straight & or consistent answers from any of them.
Many thanks
Taxation of Rental income
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The Olive Grove
- Posts: 750
- Joined: Sun Mar 25, 2007 2:19 pm
Like all things Italian it'll be a difficult process 
(My 2 Italian neighbours who have, respectively, 11 rental apartments and five rental apartments and are both 'in regola' advise me not to do anything for my one apartment as it's such a hassle.....)
I have prepared a list of documents that the Comune (Uff. Attività Commerciale) requested of me. That alone has taken me 8 months to do
The Provincial Tourist Office also requests the same documents - but sounded rather dubious about it all when I spoke with them
When I decide to produce these documents at the Comune I will let you know what the iter then will be. (After nearly half a century here I have slowed up to the Italian pace of things )
But sooner or later Id like things 'in regola' so that I can sleep soundly at night
(My 2 Italian neighbours who have, respectively, 11 rental apartments and five rental apartments and are both 'in regola' advise me not to do anything for my one apartment as it's such a hassle.....)
I have prepared a list of documents that the Comune (Uff. Attività Commerciale) requested of me. That alone has taken me 8 months to do
The Provincial Tourist Office also requests the same documents - but sounded rather dubious about it all when I spoke with them
When I decide to produce these documents at the Comune I will let you know what the iter then will be. (After nearly half a century here I have slowed up to the Italian pace of things
)But sooner or later Id like things 'in regola' so that I can sleep soundly at night
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The Olive Grove
- Posts: 750
- Joined: Sun Mar 25, 2007 2:19 pm
[quote="pambon"]
(My 2 Italian neighbours who have, respectively, 11 rental apartments and five rental apartments and are both 'in regola' advise me not to do anything for my one apartment as it's such a hassle.....)
my commercialista actually advised the same thing.
Should this maybe be in "members only" in case we have some enterprising Guardia di Finanzia
(My 2 Italian neighbours who have, respectively, 11 rental apartments and five rental apartments and are both 'in regola' advise me not to do anything for my one apartment as it's such a hassle.....)
my commercialista actually advised the same thing.
Should this maybe be in "members only" in case we have some enterprising Guardia di Finanzia
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Gloria - Casina di Rosa
- Posts: 46
- Joined: Mon Jan 09, 2006 5:33 pm
- Location: Tuscany, South of Siena
- Contact:
Until a few years ago, you could rent out up to 3 vacation rentals without needing a proper "casa vacanza" business. You would give out receipts taken from one of those booklets you buy at a Buffetti or similar stores and then you would pay 30% of your total earnings in taxes. 15% of the total invoiced was deducted to cover the expenses.
Example: you invoiced 100. 15 would cover the expense, and you would pay 30% of 85.
Now you need to be a casa vacanza if you rent for more than 6 weeks every year.
In order to be a casa vacanza you need to be vat registered and to present a DIA to your comune (denuncia inizio attività). In this paper you declare that your accommodation is in compliance with the rules on this matter.
Then the taxes are paid on the actual earning, and all expenses can be taken off your net earnings provided you get invoices for those expenses.
Example: you invoiced 100. 15 would cover the expense, and you would pay 30% of 85.
Now you need to be a casa vacanza if you rent for more than 6 weeks every year.
In order to be a casa vacanza you need to be vat registered and to present a DIA to your comune (denuncia inizio attività). In this paper you declare that your accommodation is in compliance with the rules on this matter.
Then the taxes are paid on the actual earning, and all expenses can be taken off your net earnings provided you get invoices for those expenses.