Welcome, home owners! How Italy is opening its arms to holiday home buyers
Buying a holiday home in Italy is the ultimate dream for many families. Now, a raft of new measures is making Italy an even more attractive place to invest in a second home in the sun.
Firstly, the much-debated and extremely unpopular IMU property tax looks to be finally en route to full cancellation. The September and December 2013 instalments of the tax were cancelled by Prime Minister Enrico Letta and plans are afoot for its full abolishment from 2014.
- Italian property prices down 5.9% on previous year (Istat)
- Fractional ownership puts buyers at the heart of Italian town life for just £55,000 (Appassionata)
- Property tax reform entices overseas buyers
The IMU tax is one of the factors blamed for the recent downward movement of Italian house prices. Figures from the National Institute for Statistics (Istat) showed a year on year decline of 5.9% as at the second quarter of this year, though Italy’s luxury property sector does seem to be bucking the national trend.
The fall in prices and the cancellation of the IMU have tempted many overseas buyers to take a closer look at Italy’s holiday homes and from 2014 onwards, they will have even more of an incentive. As of 1 January 2014, Land Registry Tax, which is paid by buyers on resale properties, will be reduced by €900 per €100,000 of the sale price for second homes and by €1,236 per €100,000 for first homes.
The measures have been designed to stimulate Italy’s property market, as one strand of the country’s economic recovery. The result is that overseas buyers have been suddenly made to feel even more welcome by the peninsula country. Many are still hesitant due to the language barrier though, as Dawn Cavanagh-Hobbs, founder of fractional ownership company Appassionata, which offers luxury holiday homes in Le Marche, explains,
“We’ve found that those considering purchasing a holiday home in Italy are often nervous about having to sign contracts and other legal documents in a language with which they are unfamiliar and laws they don’t understand. Purchasing a property overseas is a significant undertaking and can be stressful enough, without the added complication of the paperwork being in Italian.
“That’s why at Appassionata we’ve taken a different approach. The legal paperwork that our owners sign is in English, so that they feel reassured that they have understood every word of it. We try to make the whole process as clear and straightforward as possible, so that purchasers don’t have to get involved in the complexities, cost and delays that can be associated with purchasing property here.”
The ethos is one that can be seen throughout Appassionata’s approach. The fact that their properties are managed means owners (who each get five weeks’ exclusive use of their chosen property per year) can arrive and begin to relax immediately – an unusual occurrence compared to the usual gardening, repairs and general cleaning that most holiday home owners face upon arrival.
With just one share left in their second fractional ownership property – the stunning five bedroom, five bathroom Casa Leopardi – Appassionata are turning their attention to two new ventures, each of which looks set to be as impressive as Casa Leopardi once they have finished the renovation and interior design.
Both in the beautiful medieval town of Petritoli, the two new properties include a three bedroom townhouse known as Tre Archi, which features the ancient city wall as part of the lounge, and the five bedroom Palazzo Scarsini, which comes complete with upstairs salon and fresco ceiling. Unusually for urban properties, both holiday homes feature fabulous outdoor areas, allowing owners to make the most of the Italian sunshine while being at the heart of town life. It is just such unique touches that have helped Appassionata to build so strong a reputation.
The combination of lowered market prices and property tax reforms mean that now really could be the perfect time for buyers to invest in their dream Italian second home. For those looking to do so without the hassle of complex Italian paperwork, Appassionata has one share left for sale in Casa Leopardi, for £195,000. The family-run company has also confirmed that the first two shares of Tre Archi will be available for £55,000 each, while the first two shares of Palazzo Scarsini will be £100,000 each.
For more information contact Appassionata on 0039 073 465 8775, visit www.appassionata.com or take a video tour of Casa Leopardi. Be quick though – only one share remains available for sale in Casa Leopardi.