Taxes to be paid when purchasing a property in Italy
WHICH ARE THE TAXES TO BE PAID WHEN PURCHASING AN ITALIAN PROPERTY?
The taxes to be paid when buying home depend on several factors. If you buy from a “private” seller or from a building company and if you wish to buy as “first home” or not.
In case the seller is a private, the sale is subject to the stamp tax of 9% (whose tax base is calculated from the cadastral value of the house revalued by the 5% and multiplied by the coefficients 110 if first home; or 120) and the mortgage and land taxes of 50 euro each.
If the seller is a building company, the sale may be:
exempt from VAT, with the stamp tax of 9% (whose tax base is the selling price) and the mortgage tax and land tax of 50 euro each
subject to VAT, at the rate of 10% (or 22% in the case of luxury homes); in this case, the mortgage and land taxes are 200 euro each.
If the purchaser wish to buy as “first home” (the house will be the residential home), taxes will be lower:
in the case of purchase by private (or building company but sold without VAT) – stamp tax is the 2% (whose tax base is calculated from the cadastral value of the house revalued by the 5% and multiplied by the coefficient 110) – fixed mortgage tax of 50 euro – fixed cadastral tax of 50 euro
in the case of purchase by company, with sales subject to VAT – VAT at 4% – fixed mortgage tax 200 euro – fixed cadastral tax 200 euro – fixed registration tax of 200 euro
The stamp tax can not, however, be worth less than € 1,000.
In addition to the registration tax, the sales subject to VAT apply a rule, except in special cases, the stamp duty of € 230 (considering the case of the notarial deed) and mortgage fee of 90 € (including 55 for the cadastral registration).
Registration taxes, mortgage and land taxes are paid by the notary (the amount is included in his fee) at the time of registration of the act.