Costs and taxes

The rules governing purchase taxes are complex but we have prepared a brief summary for you. 

With legislation introduced a few years ago it is now possible for private individuals to pay the Imposta di Registro (stamp duty) calculated on the Land Registry Value (usually considerably lower than the purchase price) as long as the price paid is stated in the deed.   The Land Registry Value is calculated from the ‘visura catastale’ multiplied by a coefficient. 


Different types of tax

Completion costs include different types of tax :

  • Imposta di Registro (stamp duty)
  • Imposta catastale (cadastral tax)
  • Imposta ipotecaria (mortgage tax)
  • IVA (VAT)


Factors that determine purchase tax

  • Whether the property is to be your main place of residence (prima casa) or your holiday home (seconda casa.  
  • Whether you are purchasing from a private individual or a company
  • Whether you are purchasing a residential or commercial property


Examples of purchase tax :

A

If the buyer and vendor are private individuals and the property is residential (not luxury) the following applies:

  • 2% of the Land Registry Value (minimum €1000) if purchased as primary place of residence (prima casa) 
  • Euro 50 for cadastral tax
  • Euro 50 for mortgage tax

or

  • 9% of the Land Registry Value if purchased as a holiday home
  • Euro 50 for cadastral tax
  • Euro 50 for mortgage tax

  • plus 12 % on agricultural land based on the price for primary place of residence or on Land Registry Value if a holiday home.

 or   If the buyer is a company or trust  the following applies: 

  • 9% of the purchase price 
  • Euro 50 for cadastral tax
  • Euro 50 for mortgage tax
  • plus 12 % on agricultural land based on the price of the land.

B

If the vendor is a construction company that is selling a property built or restored within the last 5 years the following applies:


  • 4 % vat of the price of the property if purchased as primary place of residence (prima casa) 

or

  • 10 % of the price of the property if purchased as a holiday home
  • Euro 200 fixed tax
  • Euro 200 for cadastral tax
  • Euro 200 for mortgage tax


If the vendor is a construction company that is selling a property built or restored more than 5 years ago  the taxes are the same as those for private individuals (A).


To qualify for the tax benefits of a purchase as a primary place of residence conditions apply:

  1. To not own other property purchased with the benefits of primary residence
  2. To not own other property in the same comune (council) either solely or in common
  3. To be resident in the comune (council) or to declare in the purchase deed that you will become resident in the council where the property is located within 18 months from the date of purchase.
  4. The property is not a luxury home (cadastral classification A1 and A8 and A9)


You will lose the benefit and have to repay the difference if:

  1. You do not transfer your residency within 18 months of purchase
  2. You sell the property within 5 years of purchase unless you purchase another property within 12 months of the sale
  3. A false statements in the purchase deed
Taxes are due on completion.

Completion is carried out by a notary and the fees depend on the price of the property and are generally proportionally higher for the cheaper properties. You will also be charged for any extra services such as legal advice, wills, etc. As an example completion fees for a property of euro 50 000 will be in the region of euro 2 000 and for a property costing euro 500 000 will be around euro 3 500.

Our fees are 5 % + iva of the agreed purchase price (minimum fee euro 5 000 + iva) and includes preparation and translation of contractual documentation, assistance opening a local bank account, obtaining the documentation required for purchase (codice fiscale),  transfer of utilities and assistance with arranging direct debit payment.  We also offer a support service following the purchase and our team has excellent local knowledge of the area. 


PLEASE NOTE :

Information is provided in good faith and refers to general aspects of a property purchase. L'Architrave Immobiliare is not responsible for errors, omissions,  improper use or changes to legislation. We would always recommend discussing with a Notaio or accountant your specific purchase requirements or for clarifications.