Buying and selling a property is always a rather delicate matter.
Today we will see what taxes are imposed on the transfer of ownership of the property and how they are calculated.
Types of taxes
The tax to be paid depends, first of all, on the civil and fiscal qualification of the seller (transferor): Sale subject to registration tax:
. purchase from a private individual
. purchase from companies that have not built or renovated the property
. purchase from companies that have built or renovated the property for more than 5 years from the end of the works and do not exercise the VAT option (optional VAT)
The sale will, on the other hand, be subject to VAT outside the cases indicated above, namely:
. the company has built or renovated the property less than 5 years after the end of the works (VAT required)
. the company has built or renovated the property for more than 5 years from the end of the works and is exercising the VAT option (optional VAT)
The first home benefits
The first home benefits require the fulfillment of three requirements:
a) declaration of the buyer:
. not to be the owner, not even for shares, even under a legal community regime and throughout the national territory, of the rights of ownership, bare ownership, usufruct, use and residence of another house purchased by the same person or by the spouse with the concessions before home
. not to be the sole owner or in communion with the spouse of the rights of ownership, bare ownership, usufruct, use and residence of another house in the territory of the municipality where the property to be purchased is located
b) the real estate unit must not belong to the cadastral categories A/1 (stately homes), A/8 (villas) and A/9 (castles and historic buildings) and A/10 (offices)
c) the real estate unit must be located within the municipality in which the buyer has or establishes his residence within 18 months of the deed. This condition must also be respected by any spouse. The residence obligation in the municipality in which the first home is purchased does not exist when the buyer carries out his / her work in the same municipality.
If it is under construction, the property must meet the requirements established by law and not be registered under categories A/1, A/8 and A/9. In this case, the buyer must declare that the deed is stipulated for a home that has and will maintain, once the work is completed, the objective characteristics required by the legislation for the application of the concessions in question. In this regard, the Revenue Agency requires that the taxpayer, after 3 years from the signing of the deed, demonstrate the completion of the works and the construction of a real estate unit with the prescribed requirements. The same principles also apply to real estate units undergoing renovation.
How to calculate the tax base
The tax base to be taken into consideration for the calculation of taxes varies according to the type of tax.
In the case of purchase from a private individual, the price-value system is used: the tax base is given by the cadastral value of the property, which is derived from the cadastral income shown in the certificate, multiplied by a certain coefficient.
The main coefficients are:
. 115.5: residential buildings with first home benefits
. 126: buildings belonging to cadastral categories A and C (excluding A/10 and C/1)
Example: in the survey, the cadastral income indicated is equal to € 2,240.
The cadastral value will then be € 258.720 [2.240 x 115.5] for the first house and € 282.240 [2.240 x 126] in the other cases. The operation must be repeated for any appurtenances subject to transfer. Taxes can be paid on the cadastral value as long as the buyer expressly requests it and the amount actually paid is indicated in the deed. This type of taxation also involves a 30% reduction in the notary's fee. If, on the other hand, the sale is subject to registration tax, but the buyer is not a private individual, the tax base will be the price declared in the deed of sale. The tax base will be constituted by the value declared in deed even in the event that the sale is subject to VAT.
The rate and fixed taxes
Transactions subject to registration tax
In case of first home purchase, the rate will be 2%, to be calculated on the cadastral value. In the case of the purchase of a property that is not a first home, the rate increases to 9%, and will be calculated on the cadastral value if the buyer is a private individual, otherwise on the actual declared value.
To this rate will be added the mortgage tax (€ 50) and the fixed cadastral tax (€ 50).
Following the previous example:
Non-luxury first home purchase
258,720 (tax base) x 2% (rate) + 50 (mortgage tax) + 50 (cadastral tax) = € 5,274.4
Non-first home purchase
258,720 (tax base) x 9% (rate) + 50 (mortgage tax) + 50 (land registry tax) = € 23,384.8
The registration tax cannot be less than an amount of € 1,000.
Sales subject to VAT
In the event of a VAT regime, the following rates are applied, calculated on the actual declared value:
. 4% first home
. 10% non-luxury homes other than the first home
. 22% luxury homes, capital buildings
To the sum thus determined will be added:
. fixed registration tax of € 200
. fixed mortgage tax of € 200
. fixed cadastral tax of € 200
. fixed stamp duty of € 230
. fixed mortgage fee of € 35
. fixed transfer fee of € 55
Considering that the costs for the deed of transfer can be quite expensive, depending on the case, it is always good to ask the notary for a timely estimate, including his fee, in order to include the costs related to the deed of transfer in the sum to be requested for any mortgage.
The concessions for the purchase of a first home property and the interest rate at historic lows for access to mortgages constitute a very favorable situation, especially in this particular economic situation. Tax savings facilitate access to homes even for those who do not have large savings, and for the very young who, even though they have not yet achieved job stability, can start building a nest. Would you like to buy a first home property but you don't know who to turn to?
Write to email@example.com to illustrate your situation. We will evaluate all the options from a legal and fiscal point of view, accompanying you in one of the most important choices of your life.