Tax breaks make Italy attractive investment

Italy, long a popular with British investors looking for property overseas, offers buyers a range of tax breaks.

The Mediterranean nation, famed for its depth of culture as much as its cuisine, is among the most popular destinations in Europe – ranked only behind France and Spain.

And its fiscal system is also suited to financial rewards for investors.

"Take capital gains tax in Italy," explained Linda Travella of overseas property specialists Casa Travella. "After five years there isn’t any."

"This is a fact not widely known, yet if you are investing in a property for your future, this can have a radical impact on the monies you receive at the end of your term of property investment."

Inheritance tax is another area where many buyers are unaware that Italy offers much better financial benefits that many other countries.

If investors compare the country to France for example, Italy has no inheritance tax if left to a close relation, such as spouse, children or direct relation.

In France however, each child only receives €150,000 (£118,000) tax free and then they pay inheritance tax on a sliding scale up to 40 per cent.

"As well as the huge benefit of buying in Italy, where these two taxes are concerned, there is also the need to understand that when the day comes to realise your investment, you are in a position to do so," said Ms Travella.