What are the taxes to pay while buying a property in Italy?
What are the taxes to pay while buying a property in Italy?
When you buy a house you are subjected to the payment of certain taxes, such as VAT, registration tax, mortgage tax and land registry tax. Taxes may vary according to the destination of the property, that is, if it is a first home, and by the seller, for example if it is a private individual, a construction company or another company inclined to buy and sell real estate.
Let's analyze the possible hypotheses better.
• PURCHASE OF THE FIRST HOME
If a private individual buys the house, the taxes to be paid are:
- Registration tax at 2%
- Fixed mortgage tax of € 50.00.00
- Fixed cadastral tax of € 50.00.00
If the seller is a construction company and the works have been completed for a maximum of 4 years, the following will be paid:
- 4% VAT
- Fixed registration tax of € 200.00.00
- Fixed cadastral tax of € 200.00.00
If, on the other hand, you buy from a construction company that has completed the work for more than 4 years, or if you buy from a non-construction company that is solely dedicated to the purchase and sale of the property, the taxes to be paid are:
- Registration tax at 2%
- Fixed mortgage tax of € 200.00.00
- Fixed cadastral tax of € 200.00.00
• PURCHASE OF A SECOND HOME
In this case the taxes to be paid change, if a buyer buys a property always for residential use but it is not a first home, there are two possibilities:
1) It is bought from a private individual, from a non-construction company, from a construction company after 4 years from the end of the works;
2) Or it is purchased from a construction company within 4 years.
In the first case, the following must be paid:
- Registration tax at 9%
- Fixed mortgage tax of € 50.00.00
- Fixed cadastral tax of € 50.00.00
For the second hypothesis instead:
- 10% VAT (20% if it is a luxury property)
- Fixed registration tax of € 200.00.00
- Fixed mortgage tax of € 200.00.00
- Fixed cadastral tax of € 200.00.00
But how are the values on which taxes are calculated?
It is of obvious interest to know how the aforementioned taxes are actually paid and calculated. They can be credited directly at the time of registration of the deed of sale. If a private individual is buying, the taxes are calculated on the cadastral value of the property. If the buyer is not a private individual or the sale concerns land, shops and offices, the calculation will refer to the price notified in the deed of purchase and not to the cadastral value. VAT is also calculated from the purchase price when the value added tax is to be paid. If, on the other hand, the purchase price is explicitly indicated in the deed, the buyer can clearly ask the notary that the taxes are counted on the cadastral value and not on the price paid. So even on the notary fee there is a discount of 30%.
