Investment

Property prices in Sicily have been rising and show every intention of continuing to do so. This is mainly due to;

1. Foreigner investors seeing potential here and thinking property values in other countries have peaked or just wanting to spread their risk.

2. Low cost airlines, allowing weekend breaks to be affordable.

3. General knowledge of Sicily is growing and people are discovering it’s charms.

4. Northern Italians have long since known about Sicily as a summer destination; they buy a large number of properties especially near the sea and for normally just for July and August.

5. Sicilians investing in property either because they do not trust other forms of investment i.e. problems with shares (such as the Parlamat food group collapse) and poor returns from banks because of the low interest rates. Also there is no inheritance tax and many parents buy a house for their children (normally very near if not next door!)

Other points

No capital gains
If the property is owned for longer than five years before it is sold.
Only 12.5% tax if sold in less than five years.

No inheritance tax (for residents) which partly explains why there is such a lack of mortgages due to property being handed down from generation to generation.

Tax (IVA equivalent to VAT) on rural restoration work is only 10%
36% of cost of renovation can be offset against future income tax liabilities
If renovation is for structural safety reasons, then a further 19% can be offset against tax

Some grants are available, mainly to encourage farmers to start Agriturismo (Farm stays).

Ownership taxes are significantly less, council tax is very low.

Living costs are lower.

Other ‘new’ EU member countries members would appear to offer investment opportunites and this is fine, but would you really want to live there?
But the main reason has to be the higher quality of life, immeasurable!