Luxury properties – the cadastral classes A/1, A/8 and A/9


Luxury properties – the cadastral classes A/1, A/8 and A/9

Laws&Regulations Oct 24, 2019 No Comments
When can we define a property luxury? On this topic, do you remember our articles of 2013 and 2018? Today, we are going to tell you some important news about this subject.

When can we define a property luxury?

According to the Italian D.M. of 02/08/1969:

single real estate units of more than 240 sqm are considered luxury. For this reason, even if purchased as first homes, they are excluded from any tax benefit: their buyer(s) will have to entirely pay every stamp duty (imposte di registro), mortgage (imposte ipotecarie) and cadastral (imposte catastali) tax. Regarding to the calculation of a property surface, balconies, terraces, cellars, garrets, staircases and garages are not included.”

In case of a luxury property, art. 33 of the Italian Dlgs 175/2014, when regulating the first-home benefits, has reconnected the exclusion of a property from any tax benefit if registered under one of the following cadastral classes: A/1, A/8 and A/9.

This legislative innovation was confirmed by a recent verdict of the Italian Corte di Cassazione. Indeed, according to the maxim extrapolated from decree 29/01/2019 no. 2414 – tax section:

The exclusion of a luxury property from any first-home benefit – as regulated by article 33 of the Italian Dlgs 175/2014 – is no longer connected to the property typology, qualitative features and surface. The exclusion of a luxury property from any first-home benefit depends on the fact that a property is registered within the cadastral classes A/1, A/8 and A/9. For this reason, the taxpayer’s mendacious statements made according to the previous regulation in force and incorrectly declaring some “no-luxury” intrinsic features of the purchased property are no longer punishable. This is because it is not possible to subject a taxpayer to sanctions according to a subsequently-made-law (favor rei principle).”

Those are the rules and regulation in force in the field of elements required to define a property luxury and the consequent exclusion of a property from the first-home benefits.   

During the time, the GE Group developed a net of partnerships with the best professionals, our service partners, able to support our all clients, both before and after a real estate negotiation.

For any further information, please, contact our head office: our specialists will be able to answer to any question you will have.

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Marianna Gaiotto

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