In reply to Firstly, if you are going to by Penny
Residency VS Non Residency
We will be closing on our property in Tuscany in November 2010. Can someone help answer some questions that we have? We are planning to apply for a resident permit and at this time I believe we have a good understanding of all the procedures & time it take for that process. The question in hand is if after our 18 month period, we are denied residency due to time scheduling conflicts, based on the municipality, we could be subject to tax penalties. My biggest financial concern is what my Realtor refers to as a discretionary tax penalty. IE a 10% penalty based on the overall purchase price of the property as explained below in my Realtor emails. This part is very confusing to me and financially not worth taking the risk, so the big question is: Does anyone know if this discretionary tax penalty really does exist? How rare is it and at whose discretion this decision is made? Is there an office or someone to contact on a local level that I can speak to about this? I have posted below the two emails we received from my Realtor, which explains in detail what the fines will or may be. Realtor Emails: --“property taxes for closing. If you are not able to registered residency within 18 months the tax office will write to you and ask for payment fo the outstanding 7% of property taxes (10% taxes that should have been paid minus 3% paid). Plus up to 30% penalty fee of the difference (so in this case of the amount corresponding to the 7%).” However, as penalty the tax office can also ask to pay 10% of the property price and not cadastral value - although this is extremely rare that happens. “ “With regards to the possible 10% tax penalty there is no office that can answer looking into your 'case' because it is basically discretionary of the tax office and therefore this means that they can decide to apply the 10% taxes of the price on the deed of sale (obviously minus the money you would have already paid) or not.” If anyone can help us with this, we would be very grateful. Thank you.