Italian apartment donation

diabllo

My partner is Italian and living here. She has been offered one of the apartments her dad owns under Italian donazione. It's a way to give away before you die so the tax is less. She cannot sell it for 20 years and althought the rent would bring in £700 a month she would be liable for maintenance bills, repairs and tax (of which we don't know the rules) and all this on top of living in England. The other owners in the block of flats are quite difficult and some bills are shared. It's all quite scary and seems like a poison chalise. Anyone any experience if this? Would she be better saying no and wait to inherit it in the next 10-15 years?

davidmcn

Any reason for asking here rather than on an Italian forum? I doubt you'll find a great deal of expertise here, it's mostly UK stuff we know about. Though presumably her dad knows the most about running the property?

[Deleted User]

It sounds a bit like her father is trying to offload one of his most difficult to manage apartments rather than a good starter apartment for her to begin with.  One has to look at motivations.  If its going to cause more stress than its worth, its probably not worth the hassle, particularly considering the distance.  But the above post does also make a good point.

greatcrested

No one here will know about italian inheritance tax - so how much tax is going to be saved by this? And is there, like in the UK, any time limit for the tax relief (in UK dad would have to live at least 7 years after making the gift). If so, how old is dad? good/poor health?

And no one here will know about Italian letting laws. In the UK, there are quite onerous obligations on landlords. The same in Italy?

Frankly, someone with no experience taking on a property that is clearly problematic, could be more trouble than it's worth. Even if nearby. But from abroad? A potential nightmare.

And then what are the realistic costs - have you actualy worked out the budget? You say 'maintenance bills, repairs and tax', but I'd guess you'd need a local agent too (more cost), and if it's anything like UK there are annual checks and other costs to add in.

£700 per month? How long do tenants typically stay in Italy? Over here, a rule of thumb is to base income on 10 months per year, not 12, to allow for voids between tenants etc.

Why the 'can't sell for 20 years'? That sounds like a real commitment and if it all gets too much, or simply does not bring in enough £ to justify the stress, she's stuck, yes? Is that an inheritance tax rule?

Certainly sounds like she's better off waiting and let dad leave her the property (or better still the cash it represents) in his will.

AdrianC

Another vote that this is ENTIRELY an Italian question, not a UK one. You need an Italian forum.

She's an Italian national, presumably fluent, so should have no difficulty finding one.