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IVIE & IVAFE
by Admin Mon May 16, 2016 9:29 am
As the first installment of these is due soon - 16th June with the second instalment due 30th November- I thought it would be useful to have an overview. Remember that this information applies only to Italian residents.
IVIE
This is a tax payable on property held outside Italy. It is calculated at the rate of 0.76% of the value of the property. For most countries (including the UK) this is the council tax value of the area where the property is located. For the UK you should take the mid-point of your council tax band. For all EU countries except the UK, you can deduct the council tax you pay overseas from the amount due in Italy.
Just like IMU, if the overseas property is your main residence and not a luxury property then it is exempt from IVIE. See this excellent explanation of main residence - in Italian.
If the amount due (before deductions and splits for % ownership) is less than €200 the you do not have to pay it but must declare the property on modulo RW of your Italian tax return.
NB - the fines for not completing a modulo RW are eye-watering - 3-15% of the value of the property plus fees and interest. There are sliding scales of fines for late delcarations which work out much cheaper so if you haven't been declaring your property it might be worth looking into rectifying that before the AdE catches up wth you. I know for a fact that they exchange information with the UK HMRC for example.
IVAFE
This is a tax on current and savings accounts held abroad and also on financial 'actions' (e.g. stocks, shares, bonds). Again there are fines for non-declaration which are a %age of the value held and vary depending upon the date of correction of missing information.
For current and savings accounts where an the annual balance exceeds €5,000 there is a fixed tax of €34.20 per account. Taxes on 'actions' are 0.2% per annum of the value of the item.
All IVAFE must be paid by 30th September each year (or in two instalments by 16th june and 30th November) and it is possible to make use of the 'Voluntary Disclosure' rules to rectify any missed or erroneous declarations.
Disclaimer
All information in this article should not be considered advice and is for information only. You are advised to seek professional advise for all tax matter.
IVIE
This is a tax payable on property held outside Italy. It is calculated at the rate of 0.76% of the value of the property. For most countries (including the UK) this is the council tax value of the area where the property is located. For the UK you should take the mid-point of your council tax band. For all EU countries except the UK, you can deduct the council tax you pay overseas from the amount due in Italy.
Just like IMU, if the overseas property is your main residence and not a luxury property then it is exempt from IVIE. See this excellent explanation of main residence - in Italian.
If the amount due (before deductions and splits for % ownership) is less than €200 the you do not have to pay it but must declare the property on modulo RW of your Italian tax return.
NB - the fines for not completing a modulo RW are eye-watering - 3-15% of the value of the property plus fees and interest. There are sliding scales of fines for late delcarations which work out much cheaper so if you haven't been declaring your property it might be worth looking into rectifying that before the AdE catches up wth you. I know for a fact that they exchange information with the UK HMRC for example.
IVAFE
This is a tax on current and savings accounts held abroad and also on financial 'actions' (e.g. stocks, shares, bonds). Again there are fines for non-declaration which are a %age of the value held and vary depending upon the date of correction of missing information.
For current and savings accounts where an the annual balance exceeds €5,000 there is a fixed tax of €34.20 per account. Taxes on 'actions' are 0.2% per annum of the value of the item.
All IVAFE must be paid by 30th September each year (or in two instalments by 16th june and 30th November) and it is possible to make use of the 'Voluntary Disclosure' rules to rectify any missed or erroneous declarations.
Disclaimer
All information in this article should not be considered advice and is for information only. You are advised to seek professional advise for all tax matter.
Last edited by Admin on Mon May 16, 2016 9:29 am; edited 1 time in total (Reason for editing : spelling)
Admin- Admin
- Location : Italy
Posts : 714
Join date : 2013-05-16
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