When does property capital gain have to be paid? / Gtres
When does property capital gain have to be paid? / Gtres

The property capital gain (plusvalenza sugli immobili) is the positive difference between the amount received at the time of selling a property and the purchase price or the construction cost of this, increased by the inherent costs. But when do you have to pay the property capital gain?

If the property capital gain comes from the sale to an onerous title of a property acquired or built during a period of no more than 5 years, it is considered one of the incomes belonging to the category "other income" and is subject to ordinary taxation at the normal Italian personal income tax (IRPEF) rates.

Exceptions:

  • property received by inheritence;
  • property received as a gift if, with regards to the person who donated the property, 5 years have passed from the purchase or construction;
  • urban real estate units which during most of the period between purchase (or construction) and transfer, have been used as the main residence of the transferor or their family.

As an alternative to ordinary taxation the seller has the right to request, at the time of disposal, by means of a declaration to the notary, the application of a substitute tax to the property capital gain obtained from the income. The applicable substitute tax rate is 20%.

Article seen on Property Sale Taxes (Today's taxes)