Over recent weeks, a former Italian prime minister has vowed to repeal recent taxes on Italian property as part of his campaign for re-election. Now, Silvio Berlusconi has gone one step further and is pledging to refund last year’s property tax payments in cash if his party wins the election on 24/25 February 2013.

We look at how this may affect Italian property owners next.

Berlusconi pledges to refund Italian property tax payments

Berlusconi’s centre-right electoral coalition has been gradually narrowing the gap in the opinion polls but is still trailing Pierluigi Bersani’s left wing Democrats. The former prime minister has said he will serve as economy minister if his party wins.

At a recent rally in Milan, Mr Berlusconi promised to abolish the local property tax introduced by the incumbent government to tackle the country’s economic problems. "This tax caused Italian families worry, anxiety, fear of the future," he told supporters of his People of Freedom party.

The BBC reports that ‘Mr Berlusconi is using his considerable political skills to appeal to an electorate which has seen a draconian increase in taxes by the technocrat administration led by Mario Monti during 2012’.

The tax on ‘first residences’ was originally abolished by Silvio Berlusconi’s government in 2008. However, it was reintroduced in 2012 by current Prime Minister Mario Monti.

The tax is currently applied (with local variations and an allowance for family dependents) at a standard rate of 0.40 per cent to first residences. Other residences are subject to a tax rate of 0.76 per cent.

While Berlusconi has long pledged to abolish the tax on ‘first residences’, he is now also promising to refund last year’s tax payments in cash. This will clearly benefit anyone who owns a property in Italy and lives in it as their main home.


Author : Nick Marr


 

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  1. avatar
    Nick Marr

    I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.