Sardinia is a very well-known destination in the Mediterranean, both for tourists and real estate investors. Its stunning beaches, crystal-clear waters and rich history will make you fall in love and never want to leave the island. For the same reasons, Sardinia also offers great investment opportunities for those wanting to acquire assets on the island.
In order to encourage foreign investors to purchase properties on Italian soil, the government has implemented a number of tax incentives that have proven to be extremely favorable and appealing for homebuyers. Thanks to these incentives investors can reduce their tax burden, increasing their return on initial investment. What Sardinia gains from this is an increasingly livelier market, new jobs, and steady economic growth.
One of the most significant incentives for foreign investors is the flat tax rate of 7% on income generated from Italian real estate assets. If you choose to retire to a town with less than 20.000 inhabitants you can benefit from this tax rate – a significantly lower amount than the regular income tax rate, which can range from 23% to 43% in Italy.
Another very interesting incentive is the credit for renovating and restoring historical properties in Sardinia. If you move your residence to a property that needs restoring and is located in a town with less than 3000 inhabitants, you can receive a tax credit of up to 50% of the costs incurred. This credit can offset any income tax, corporate tax, or value-added tax (VAT), and restored historical buildings gain added value, as well as helping preserve the island’s rich cultural heritage.
Additionally, if you’re looking into working from Sardinia and you’re taking up Italian residence for the first time, you can benefit from High Net Worth Individual incentives. This allows you to choose to pay an annual substitute tax of 100,000 €, as well as not having to pay any taxes on foreign-held assets, which are also not subject to reporting obligations.
In addition of these benefits you can enjoy, Sardinia also offers a fairly stable and transparent legal framework if you’re looking to invest in real estate. Civil law is at the base of the Italian legal system, and property rights are very well-protected. Sardinia’s real estate market also grants safe and transparent investments.
Overall, Sardinia’s tax incentives for foreign investors in the real estate market are an attractive opportunity for those looking to diversify their portfolio and expand their investment opportunities. With its stunning natural beauty, rich history, and favorable investment environment, Sardinia is an ideal location for foreign investors seeking to capitalize on the island’s growing real estate market.
If you’re interested in purchasing a luxury home in Sardinia, check out our website: www.italianluxuryasset.com/sardinia
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