Good returns in Italy for overseas investors

Overseas property investors have been recommended to consider purchasing a residence in Italy as analysts predict government reforms could make the Italian investment highly lucrative.

Silvio Berlusconi plans to remove Italy's main property tax, ICI, which helps fund local administrations, would cost nearly 2 billion euros ($3.2 billion). Berlusconi said in an interview that he'll move quickly to cut the tax burden for Italians. Dan Johnson, MD of TheMoveChannel.com has said that the planned tax cut would be a beneficial for Italian property owners.


Gianluigi Mandruzzato, an economist at Banca BSI SA in Lugano, Switzerland has said that the stability of the government is good news for the economy and for policy making.

Already Italy has lead the way in property tax reforms offering substantial VAT discounts and no capital gains tax on profits from Italian property. If the main property tax is abolished then buying a property in Italy will be much cheaper.

Foreign Property Buyer website has reported that this could initiate more interest in the Italian property market and rise prices in prime areas. Many Overseas investors are flocking Italy as it provides a healthy investment arena with tax reforms, high capital growth and a strong tourist market.

Rupert Fawcett of Knight Frank Speaking to the Times said that areas such as Tuscany offer a wide spectrum of property types and maintaining their appeal to overseas investors.