Italy: Cash for Castles

Teal Lantern · Post by **Teal Lantern** » October 15th, 2013, 8:03 am

Cash-for-Castles: Italy sells off historic sites to plug budget holes
http://rt.com/news/italy-treasures-sell-austerity-140/

Now, if you could just trust them to not take the property back under excessive taxation or changing the regulations on you.

publicduende · Post by **publicduende** » October 15th, 2013, 8:23 am

This is the beginning of the end. Next up, we will have to sell our gold reserves, one of world's biggest.

momopi · Post by **momopi** » October 15th, 2013, 11:05 am

If the property is not currently generating revenue for the government, by selling to a private buyer they can charge property tax on the property and revenue tax on any income.

If the government were to take the property back, then they'd also lose that tax income.

There are companies that specialize in selling "castles" across Europe. Most of the "castles" are actually historic mansions and has nothing to do with being a real castle. Only very few are actual forts.

Teal Lantern · Post by **Teal Lantern** » October 17th, 2013, 8:54 pm

momopi wrote:If the property is not currently generating revenue for the government, by selling to a private buyer they can charge property tax on the property and revenue tax on any income.

True.

momopi wrote:If the government were to take the property back, then they'd also lose that tax income.

They'd still keep what the buyer paid originally, wait a few~10 years and re-sell to a new buyer.
Foreign investors don't vote.

Cornfed · Post by **Cornfed** » October 17th, 2013, 9:20 pm

The banksters just keep on winning. As a result of the economic meltdown that they themselves caused they'll get to buy up entire countries for pennies on the dollar.

fuzzy_corleone · Post by **fuzzy_corleone** » October 24th, 2013, 4:02 pm

All of these economic problems. Why can't they just leave the European Union and create their own currency? Is that such a radical idea? It's only common sense.

momopi · Post by **momopi** » October 24th, 2013, 11:54 pm

Teal Lantern wrote:
momopi wrote:If the property is not currently generating revenue for the government, by selling to a private buyer they can charge property tax on the property and revenue tax on any income.
True.
momopi wrote:If the government were to take the property back, then they'd also lose that tax income.
They'd still keep what the buyer paid originally, wait a few~10 years and re-sell to a new buyer.
Foreign investors don't vote.

The purchase price is only part of the cost. Many of these old estates were put up for sale, because the local government is not getting revenue and has not paid for maintenance and repairs. The buyer might find a bargain price ($100k-$200k) for such an estate, with a roof in danger of collapsing. The additional renovation cost to make it habitable will run in the millions.

If you could afford such an expense, then it is assumed that your social circle will include the local bigwigs.

Jester · Post by **Jester** » October 31st, 2013, 12:25 am

momopi wrote:
If the property is not currently generating revenue for the government, by selling to a private buyer they can charge property tax on the property and revenue tax on any income.

Never thought about this.

Property tax forces you to go to work.

Income tax hits when you do.

Stimulus/response.