Country Guides / Italy

Italy, Calabria - new investments in Europe's emerging market.

Italy, blessed with an abundance of beautiful coastlines, fragrant countryside, mountains, lakes, rolling countryside, superb architecture, music, art and arguably the most impressive collection of treasures in the world, has been attracting visitors for centuries. Today, it is still one of the most popular destinations for those looking to sample not only the culture but the world famous cuisine and the warm Mediterranean climate.

Located in the toe of the boot in the 'Mezzogiorno' region Calabria enjoys some of the best weather due to its southerly location, boasting some of the best sugar-fine sandy beaches, varied countryside and even skiing. Recently enjoying huge interest and investment from overseas, the region is becoming a hot spot for property investment.

REASONS TO INVEST IN ITALY

Economy

As a member of the European Union, Italy has a strong economy with relatively low prices compared to many EU destinations. Although the economy is fairly slow, tight economic policies have resulted in lower interest and inflation rates. The government has also included tax reforms to improve investment and to keep the market buoyant.

Property prices in Italy rose in 2006 by 7% and projected increases in capital growth per annum are expected to be around 20% and there are also new markets still to be discovered such as Calabria that will offer even higher potential capital gains.

New Developments in Calabria

Italy is the destination of choice for many overseas tourists enticed by the quaint rural properties and endless beaches, however new properties are hard to come by in most regions, with developers deterred by the prohibitive amount of red tape involved in these types of projects.

However, a different story is emerging from Calabria, where the regional government has realised that the rest of Europe is enjoying huge rewards from new development and that region should encourage overseas investment and development in order reap the benefits of improved infrastructure, facilities, jobs and wealth.

International developers encouraged by a more relaxed attitude to bureaucracy have begun transforming the region, providing a selection of brand new, high quality modern residential projects at fantastic prices.

Tax

Investing in Italian property is encouraged by the Italian government by favourable taxation rates allowing maximum returns on investments.

• 0.4% to 0.7% ICI (Property tax)
• 0% capital gains tax
• 0% wealth tax
• 0% inheritance tax
• Tax burden reduced for residents
• Italy has a double tax treaty with the UK

Rental Yields

The high numbers of domestic and overseas tourists visiting Italy are good for those interested in investing in the buy-to-let market. The low cost airlines have revolutionised the way holidays are booked, with more self-catering accommodation and flights now booked on the internet, which is good news for individual property owners. Rising interest, investment and development coupled with lower prices in the south make Calabria a fantastic region for potentially lucrative rental investments.

Tourism

Italy is a well established tourist destination, however the south western region of Calabria, although popular with the domestic tourism especially throughout the summer, the area has recently come to prominence with overseas investors and tourists, taking advantage of the low prices. This region is the fastest emerging market in Europe, due to its central location is easily accessible from most European capitals.

This region will also benefit from the increase in budget airlines, with direct flights from Stansted airport to Lamezia making this a realistic short break destination, second home or fantastic rental opportunity.

Access

Italy is easily accessible from most European cities with a flying time of only 2.15 hours from the UK, with direct flights from London to Lamezia, Calabria. Ryanair have introduced a low cost direct flight cutting down the expense as well as the travelling time.

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