You have finally found your dream house and it’s time to buy it. Here there are the different expenses that need to be taken into account.
When you decide to proceed in a property purchase you have to consider a series of expenses and taxes (additional to the property cost itself) that contributes to the final expense amount:
– the notary deed charges (fixed taxes that have to be summed to the total amount you have to deposit to the notary)
– the real estate agency consultancy costs (read our website, in the “Purchase Services” section)
– the notary deed taxes: they can change depending on the sellers’ nature (private, society that realizes properties trades, building or re-building contractors) and on the purchase typology (first home, that allows people to have some tax breaks, second home, when the buyer doesn’t habitually live in it, office or industrial usage)
THE NOTARY DEED CHARGES – THE TAXES –
If you acquire from a private or a company with a free VAT purchase
– registration fee: equal to 9% (that decreases to 2% in case of first home) of the cadastral property value;
– cadastral tax: equal to 50 euros
-mortgage tax: equal to 50 euros
The cadastral value can be obtained by multiply the cadastral income to the fixed coefficient 115,5 (that becomes 126 in case of second home).
If you acquire from a company with a subjected to VAT purchase:
If you acquire from a building contractor with a subjected to VAT purchase, you will have to pay the VAT too; in addition, the taxes (registration fee, cadastral and mortgage taxes) are fixed to 200 euros. The VAT rate may change depending on the situations:
4% of the total property price (for first home)
10% of the total property price (for second home)
22% of the total property price (for a luxury home)
So, in case you decide to acquire a property to use it as a first home, you will enjoy some benefits. However, the rigorous respect of important requisites and the issue of specific declarations during notary deed will be unavailable. The aforementioned benefits can be applied when:
The property subjected to be purchased belongs to some defined cadastral categories:
A/2 (civil type houses); A/3 (economic type houses) A/4 (popular type houses); A/5 (ultra-popular type houses); A/6 (rural type houses); A/7 (cottage type houses); A/11 (local typical houses and accommodations type). However, the benefits for the first home aren’t allowed for the purchasing of houses that belong to the cadastral categories A/1 (noble type houses), A/8 (villas type houses), A/9 (castles and palaces of distinguished artistic or historical merits).
The property is located in the municipality where the buyer wants (or has the intention) to settle his/her residence in or where he/she works;
The buyer respects determined requisites (he/she can’t be the owner of another property in the same municipality and can’t be the owner, on the whole national territory, of property, use, usufruct, home or bare ownership rights on another property bought, even if by his/her spouse, enjoying the benefits for the first home purchase). From January 1st 2016, the fiscal benefits have been recognized also to buyers who already own a property bought with the benefits, as long as that the house already owned would be sold within a year from the new purchase.
Unfortunately, concerning the tax incentive for the new properties purchase (or for the properties that have a high energetic efficiency), i.e. the Italian Irpef tax deduction (PIT) that amounts to 50% of the VAT payed at the moment of the purchase, it wasn’t extended by the last Stability Law of 2018 (on the contrary to what it is established from the ones of the last two year).
Moreover, need to be mentioned the after-purchase property taxes too:
– the real estate trade taxes or the ownership transfer taxes (registrations, mortgages, VAT and the cadaster);
– the taxes related to the property ownership by natural persons and society: IMU (Imposta Municipale Unica, not considered for not-luxury first homes), Tari (TAssa RIfiuti, it’s a waste tax that have to be payed by who, in any capacity, actually lives in the property), TASI (Tassa sui Servizi Indivisibili), and so on, until the lease cedolare secca that, from 2011, substituted the Irpef for what concernes the rental income, registration fee and registration tax.
If you want to acquire a luxury property and receive all the information you need, including the ones of the specific costs, contact our headquarter: our professionals will be able to satisfy your exigencies. Moreover, visit our website