Italian boat and yacht tax repelling investors
Those looking for a life of luxury in Italy are increasingly turning their eye towards nearby Montenegro instead, thanks to an unpopular tax on boats and yachts. The Boka Group explained to Property Wire that even Italians are moving their assets away from the country, in a bid to escape the new levy. Over the last six months, the private equity real estate developer has seen a 175 per cent rise in interest and enquiries from Italian buyers.
John Kennedy, Boka Group chief executive officer and founder, told the news portal: "This single measure has seen enquiries from Italian investors for land based assets now competing with traditional market enquires from British and Russian clients. Italians are now right at the top." The move to neighbouring Montenegro has serious ramifications for the Italian property market - particularly in the prime segment. It is believed since the tax was introduced, an estimated 20,000 yachts from Italian ports have been moved to anchor in France, Spain, Malta, Croatia, Greece and Montenegro - an act that will see holiday home numbers decrease in certain areas.
The Boka Group has already observed general movement by non-boat owners away from Italy. "Many are worried they are next in line for tax targeting in any new round of fiscal initiatives," Mr Kennedy explained to Property Wire. "With no signs of European Union and Italian deficit problems being resolved soon, there are signs of a pre-emptive movement to swap and relocate fixed assets out of Italy."
The recent decision to cancel a controversial tax on primary residences may not be enough to persuade second-home owners and overseas investors to stay in the Italian Market. Enrico Letta decided to cancel the levy to save the fragile coalition government and mend relations with Silvio Berlusconi. However, a municipal tax will be introduced in 2014 to make up for the loss of the primary residence levy.
An uncertain tax environment is disheartening to investors and the Boka Group believes many are now reassessing where they locate their assets. The boat and yacht tax is even harming employment, with the recruitment sector noting a 15 per cent fall in the number of staff employed in the industry, Property Wire reported. This equates to 9,000 jobs - opportunities that are vital for a country that is struggling financially.
John Kennedy, Boka Group chief executive officer and founder, told the news portal: "This single measure has seen enquiries from Italian investors for land based assets now competing with traditional market enquires from British and Russian clients. Italians are now right at the top." The move to neighbouring Montenegro has serious ramifications for the Italian property market - particularly in the prime segment. It is believed since the tax was introduced, an estimated 20,000 yachts from Italian ports have been moved to anchor in France, Spain, Malta, Croatia, Greece and Montenegro - an act that will see holiday home numbers decrease in certain areas.
The Boka Group has already observed general movement by non-boat owners away from Italy. "Many are worried they are next in line for tax targeting in any new round of fiscal initiatives," Mr Kennedy explained to Property Wire. "With no signs of European Union and Italian deficit problems being resolved soon, there are signs of a pre-emptive movement to swap and relocate fixed assets out of Italy."
The recent decision to cancel a controversial tax on primary residences may not be enough to persuade second-home owners and overseas investors to stay in the Italian Market. Enrico Letta decided to cancel the levy to save the fragile coalition government and mend relations with Silvio Berlusconi. However, a municipal tax will be introduced in 2014 to make up for the loss of the primary residence levy.
An uncertain tax environment is disheartening to investors and the Boka Group believes many are now reassessing where they locate their assets. The boat and yacht tax is even harming employment, with the recruitment sector noting a 15 per cent fall in the number of staff employed in the industry, Property Wire reported. This equates to 9,000 jobs - opportunities that are vital for a country that is struggling financially.
PUBLISHED : 17TH SEPTEMBER 2013
