QUESTIONS & ANSWERS
Our experts are here to help with all your questions
about Italy. Email your questions to italia@
anthem-publishing.com, or write to us at our
usual address, which you’ll fi nd on page 18.QUESTIONS
& ANSWERS
FRACTIONAL OWNERSHIP
Q
Post-Brexit, what are the benefi ts of fractional ownership in
Italy over purchasing a property outright?
Justine Foster, DarlingtonA
Brexit has brought some uncertainty to potential British
purchasers of EU-based holiday homes, with some no doubt
delaying a purchase decision until things are clearer. The Appassionata
Fractional Ownership model is an ideal solution during these more
uncertain times. With multiple owners from the USA, Brazil,
Australia, South Africa, China
and Europe, it is clear that our
model is an ideal solution to
owners who already live outside
the EU.
Fractional Ownership
allows people to buy into a
more luxurious property at a
fraction of the cost of whole
ownership and to buy the weeks they use. If you want to own an
impressive second home in a beautiful area but can’t quite justify the
expense, because in reality you will only be using it for a few weeks a
year, fractional ownership is the answer.
Many of our owners had previously owned a holiday home outright,
but decided to sell. They still wanted to own and enjoy a holiday home
with family and friends but were not prepared to tie up a large amount
of capital in a property they only used for a few weeks each year.
As a lifestyle investment, it makes sense. On average, a holiday
homeowner only uses their property for 40 separate nights but
pays for the entire year. Our owners don’t have the fi nancial burden
or worry of maintaining the property all year round; they simply
split the maintenance fees with fellow owners and the management
company do the rest.
Appassionata’s owners buy a tenth-share in their property
of choice, which allows fi ve weeks’ residency each year. They are
investing in ‘bricks and mortar’ – an asset which can be passed
on to family or sold at any time.
Dawn Cavanagh-Hobbs, Appassionata50 ITALIA! November 2016ITALIA!
legal
expertPOST-BREXIT VISAS AND TAXES
Q
I retired recently and I am considering buying a
property in Italy in the future but I am concerned
about how Brexit will impact on this. I understand
that the European Commission is looking into a visa
requirement for non-EU residents. When we leave the EU
we will be in that category. Therefore, would this mean
that as a property owner I would be restricted in the
length of time I can remain in Italy at a given time? I know
that everything at the moment is uncharted, but if it were based
on the US visa system, then how would it work for me?
Richard Merritt, via emailA
While it is very diffi cult to foresee the impact of the
Brexit referendum on the future status of UK citizens
in Europe, and vice versa, the requirement of a visa, or the
equivalent, is one of the possible outcomes.
Under the current applicable rules, non-European citizens
wishing to travel to the Schengen Area must apply for a short-
term Schengen tourist visa. Depending on the visa issued they
may be allowed to enter once or multiple times and stay for
no longer than three months/90 days within a given six-month
period. This visa requirement may also apply to British citizens
once the UK has exited the EU.
However, the impact of the Brexit referendum on the
costs and taxes associated with purchasing property may not
be negatively affected. Tax liabilities strictly connected to the
purchase of a property in Italy apply to all private individuals
and corporate entities entitled to invest in real estate property in
Italy, regardless of the EU membership of their country of origin.
While this entitlement is automatically recognised to
citizens of EU Member states and of EEA Countries (Iceland,
Liechtenstein and Norway), it also originates from other factors
such as bilateral agreements between
Italy and other countries in matters
promoting and protecting investments.
Generally speaking, this entitlement is
also recognized to citizens of countries
that allow Italian citizens to invest in
real estate properties on their territory.
The main property taxes applicable
to real estate property purchases in
Italy are Stamp Duty and Land Registration tax. For properties
classifi ed as “urban” and purchased as second homes the rate is
nine per cent of the offi cial value and two per cent if the buyers
decide to become resident in Italy. The offi cial value is generally
much lower than the actual purchase price. When the purchase
is subject to VAT, such as off-plan purchases from a developer
company, it is levied at 10 per cent on new non-luxury properties
and typically 20 per cent on luxury properties, and it is included
in the price charged by the builder or developer.
Laura Protti, LEP LawLaura Protti is the founder
of LEP Law. She is dual-
qualifi ed as an Italian
avvocato and English
solicitor, and specialises in assisting British and Italian
clients with matters relating to Italian law. Visit her
website at http://www.leplaw.co.uk for more.Dawn Cavanagh-Hobbs is co-founder of the
successful fractional ownership company
Appassionata Ltd, a UK-based development
business that specialises in the restoration
and creation of unique properties in the
stunning region of Le Marche. [email protected]
http://www.appassionata.comPhotograph © Appassionata Photograph © iStockTHIS MONTH’S EXPERTS
Consider the benefi ts
of fractional ownershipUK nationals may
need a visa to visit
Italy after BrexitIT144.Q&A.sg4.indd 50 28/09/2016 15:28pm