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 Post subject: The Euro
PostPosted: December 4th, 2011, 2:06 pm 
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Joined: February 19th, 2008, 9:00 pm
Posts: 107
Location: bedfordshire
Hi all, can anyone offer advice regarding money in my Italian account , would it be wise to transfer it back to a uk account with the uncertainty of the Euro ? What would happen to our Euro's if the Euro does collapse ?
Thanks
Paul


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 Post subject: Re: The Euro
PostPosted: December 4th, 2011, 9:57 pm 
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Joined: January 26th, 2008, 4:11 pm
Posts: 185
Location: West coast, Ireland & Calabria
You will end up with trillions of lire that will miraculously surface at every street corner. You will feel very good for a little while and then you will try to purchase something -----------
I will end up with Irish Punts which will be worth about half what they were worth when we converted to Euro :oops:
But then again half of nothing is ?


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 Post subject: Re: The Euro
PostPosted: December 4th, 2011, 10:02 pm 
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Joined: January 26th, 2008, 4:11 pm
Posts: 185
Location: West coast, Ireland & Calabria
Anyone please - Any news as to the new austerity budget of Senore Monti ?
What hit will holiday property take ?


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 Post subject: Re: The Euro
PostPosted: December 5th, 2011, 8:47 am 
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Joined: June 5th, 2007, 4:36 pm
Posts: 1105
Location: Italy
My understanding, from following the press release Sunday night, is that the ICI tax will be reintroduced for 1st homes - something second home owners already pay - and that new taxes will be introduced for products defined as luxury, large villas, yachts over 10 meters and powerful cars. The exact criteria will surface in the coming days. After the summer of 2012 the IVA on property purchase will rise by 2.5 %.

I will keep you posted as details emerge and my understanding of the impact improves.

All in all the trend is to lower the cost of production, capital and labor and raise tax on consumption. The major bonus of the 'save Italy' package is for companies that salaries are now (finally) tax deductible.

Dennis.


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 Post subject: Re: The Euro
PostPosted: December 5th, 2011, 1:49 pm 
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Joined: August 7th, 2009, 2:31 pm
Posts: 290
DennisInCalabria wrote:
My understanding, from following the press release Sunday night, is that the ICI tax will be reintroduced for 1st homes - something second home owners already pay - and that new taxes will be introduced for products defined as luxury, large villas, yachts over 10 meters and powerful cars. The exact criteria will surface in the coming days. After the summer of 2012 the IVA on property purchase will rise by 2.5 %.

I will keep you posted as details emerge and my understanding of the impact improves.

All in all the trend is to lower the cost of production, capital and labor and raise tax on consumption. The major bonus of the 'save Italy' package is for companies that salaries are now (finally) tax deductible.

Dennis.

Does this mean on a second home tax rises from 10% to 12.5% and first homes 4% to 6.5%?
Thanks


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 Post subject: Re: The Euro
PostPosted: December 5th, 2011, 11:38 pm 
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Joined: June 5th, 2007, 4:36 pm
Posts: 1105
Location: Italy
My understanding is that only the 10% and 20% vat rates would change but I am not sure if the 6% tax rate on the purchase of a new home is just that or calculated as a discount on the 10% rate, in which case it be affected too.

Sorry if it sounds confusing, that's because it is .....

I will find out in greater detail over the next weeks and report back with a comprehensive list of how it affects our business and the second home market. For now, it appears to be marginal.

Dennis.


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 Post subject: Re: The Euro
PostPosted: December 6th, 2011, 12:46 pm 
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Joined: March 10th, 2009, 3:25 pm
Posts: 81
Hopefully the Italian Goverment will tighten up on owners who do not pay their taxes on the income received from renting out their properties!!


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 Post subject: Re: The Euro
PostPosted: December 6th, 2011, 4:43 pm 
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Joined: January 25th, 2008, 8:35 pm
Posts: 1482
Location: Herefordshire/Badolato
ouch. now dentists, had 2 lots of work done, took a year to get a receipts and then wanted more money as they would have to pay tax.


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 Post subject: Re: The Euro
PostPosted: December 6th, 2011, 11:43 pm 
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Joined: June 25th, 2008, 6:39 pm
Posts: 1166
Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Doodles,
This business of paying tax in Italy is complicated particularly if you are an expat and don't speak Italian.
As far as I understand the matters of Italian Taxes :
Holiday homes should be paying a nominal tax even if they do not rent them out.
For those that rent them out they should declare the rental income to the Italian authorities but if the profit (income less expenses /allowances) is less than the personal allowance, no tax should be due. Do we still have to file a tax return to them in this situation? Even if tax due in Italy is paid, the Double Taxation Agreement with the UK avoids tax being levied twice, but you should still have to inform HMRC what rentalo income that you have received.
I do not know what the Italian personal allowance is but the total amount of my rents (less expenses) I am sure will fall well short of this figure unless they take into account your other UK or worldwide income.
If no tax is paid in Italy (whether or not an Italian Tax return has been filed) the rents received may well be taxed by HMRC as it is untaxed income. Hopefully in this case all the outgoings (as on UK rental property) will be taken into account against the rental income to reduce the tax bill. This is what I intend to do (unless I am advised differently) when I file this years tax form to HMRC.
Anybody have any comments on my thinking on this and does anyone know of an English speaking Italian accountant on the west coast?
davidnam


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 Post subject: Re: The Euro
PostPosted: January 10th, 2015, 10:51 am 
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Joined: June 25th, 2008, 6:39 pm
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
It's a good time for Brits to purchase a property or travel to Italy or any Eurozone country with the GPB / Euro exchange rate around the 1.28 level. This is the rate when I purchased my property in Capo Vaticano 5 years ago.
With the one month Euribor dropping again today with the rate at 0.10%, it's good for those who have a Euribor linked mortgage or to those looking to get a new Euro mortgage.
With Quantatative Easing on the horizon it could get even better!


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 Post subject: Re: The Euro
PostPosted: January 19th, 2015, 12:14 pm 
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Joined: June 25th, 2008, 6:39 pm
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
The Euro exchange rate now flirting at 1.31 to the GBP and the 1 month Euribor at a all time low of 0.002% it is good for Brits going on holiday to Italy and for paying almost no interest on their mortgages.
Can it get even better with QE for the Eurozone possibly being announced this week and with the Greek election on Sunday?
Unfortunatly all this has devalued our properties in Italy in relative terms but it is a good time to buy. Wish I had bought in Switzerland !!


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 Post subject: Re: The Euro
PostPosted: January 19th, 2015, 7:19 pm 
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Joined: June 5th, 2007, 4:36 pm
Posts: 1105
Location: Italy
Wow, yes you're right about having bought in Switzerland! You'd have gained 20% equity or so last week alone.

Now, if only we saw those things coming ....... Some people who are paid to see this coming didn't - in fact some banks are going bust over this.

In fact there is a bit of movement on the mortgage side of things as well and I can report that our mortgage consultant can if fact set up a mortgage for existing property in Calabria for people earning in GBP. As always, conditions apply.


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 Post subject: Re: The Euro
PostPosted: January 20th, 2015, 2:22 pm 
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Joined: February 19th, 2014, 4:00 pm
Posts: 8
The Euro does look weak and is expected to weaken further if the ECB embark on a significant QE programme this coming Thursday. If anyone wishes to use my firms services to transfer Euros or any other currency to and from abroad please get in touch. The website is www.ostcfx.com , fully regulated and better rates than any bank or broker. Gareth Baxter gareth.baxter@ostcfx.com


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 Post subject: Re: The Euro
PostPosted: January 20th, 2015, 2:35 pm 
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Joined: June 25th, 2008, 6:39 pm
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Dennis, Foresight would be a wonderful gift. Unfortunatly hindsight is all we have and maybe learn lessons from it.
The one month Euribor rate is reported today as -0.002.
Does this mean that they will pay mortgagees interest or reduce the spread rate by this negative amount on the date of the month agreed? I don't think so somehow!


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 Post subject: Re: The Euro
PostPosted: January 20th, 2015, 3:28 pm 
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Joined: June 5th, 2007, 4:36 pm
Posts: 1105
Location: Italy
Hi David, my understanding is that Euribor is the interbank exchange rate to which the spread (1 or 2% profit) gets added. A negative rent means that banks have to pay to park money at ECB, which should motivate them to lend the money to consumers and businesses instead - thus helping the economy.

Would be interesting to get an insiders opinion on this....


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 Post subject: Re: The Euro
PostPosted: January 22nd, 2015, 12:47 pm 
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Joined: June 5th, 2007, 4:36 pm
Posts: 1105
Location: Italy
Curious to see what the ECB announcement will be later today and how the markets will react. A cheap euro will make it easier to sell Italian property to the English, Americans and some Scandinavians. Guess the Russians are out due to a weak Rouble.


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 Post subject: Re: The Euro
PostPosted: February 28th, 2015, 7:10 pm 
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Joined: June 25th, 2008, 6:39 pm
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Amazing that the One month Euribor rate is down to -0.005% the lowest it has ever been. The Euro to the GBP exchange rate 1.38 last night.
Will the Euro depreciate further with no certainty with a Greek Goverment or should one purchase Euros now?


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 Post subject: Re: The Euro
PostPosted: April 15th, 2015, 3:17 pm 
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Joined: June 25th, 2008, 6:39 pm
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
I thought 6 weeks ago the One month Euribor had reached it's lowest level ever.
Yesterday it went down to -0.025%!! This decrease translates to just a few Cents / Euros a month off the mortgage interest one has to pay that is if the Bank takes the minus figure into consideration!
I hope that this trend does mean that the Eurozone crisis will persist for some considerable time so they will keep their interest rates low and the exchange rate very favourable against the GBP.
It should mean a good time to buy property in Italy and Europe.


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