Renting foreign real estate: "net" rent subject to taxation

How is the taxation of real estate rented out abroad by individuals residing in Italy carried out? Is the taxable amount the gross canonical rent or the rent excluding expenses related to the rental? The answers to these questions are in this article.

When a tax resident of Italy receives income from real estate abroad, the question of how to tax that income arises.

• In the country where the rental is located (the so-called "source country");
• At the same time, also in the country of residence of the owner or rights holder of the property.

We are essentially dealing with parallel taxation of income in two different countries. This situation of double taxation is regulated through the application of a foreign tax credit in the country of fiscal residence of the property owner. Below, we will provide a brief description of how this operates, including taxation...