Italian Property Tax Slammed As 'Odious And Inequitable'

By Editorial 17 May, 2012

Niccoló Rinaldi, head of the Italian opposition party, Italia dei Valori, in the European Parliament, has described the new Italian tax on the value of overseas properties and financial assets as only the latest in a long line of attacks on the finances of Italians expatriates.

L'imposta sul valore degli immobili esteri (IVIE) was established by the Monti government in its ‘Save Italy’ budget, which was approved late last year, and whose measures are targeted at Italy’s elimination of its fiscal deficit in 2013. There will, from 2012, be a levy of 0.76% on the purchase cost or market value of property held abroad by Italian individuals, and of 0.1% (rising to 0.15% in 2013) on the market value of their foreign financial assets.

Rinaldi pointed out that, in most cases, those Italians “have made sacrifices and earned money for Italy through their remittances.” He added that, in Parliament, MEPs are hearing the profound dissatisfaction of Italians around Europe.

In fact, he stated that the measure is “particularly odious and inequitable for many reasons, amongst which, for example, is the fact that property held abroad is subject to IVIE if it is held by an individual, but not if held by a company or trust. In that way, it is only levied on the weakest taxpayers.” There is also, in his view, a “discrimination” in favour of Italian state employees abroad who will pay a reduced tax rate.

The MEP concluded that the tax could be a violation of the regulations which protect the free movement of people within the European Union (EU). He called on the Italian government to intervene immediately to remove any possibility of IVIE being contrary to EU principles, so as to avoid possible future legal action against the country in the European Court of Justice.

Tags: Individuals | Expatriates | Court | Tax | Investment | Real-estate Investment | Property Tax | Law | Real-estate | Employees | Tax Rates | Italy | Regulation | European Union (EU) | Europe |


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