The valuation of a property takes place through an estimate that takes into account, first of all, the value that the property has on the market, based on the values of the sale recorded in a given area. The evaluation takes into consideration several aspects:
• location of the property;
• square footage;
• internal state of the property;
• presence of external areas (balconies; terraces; external courtyards; gardens);
• appliances (parking space; garage; cellar);
• maintenance status of the building;
• insertion into the urban fabric (connections, presence of primary and secondary services)
A professional evaluation requires an accurate visit of the property, the drafting of a technical data sheet as well as the drafting of a professional opinion based on the value of the sales of properties with similar characteristics and located in the same area of the property to be evaluated.
The documents needed to sell a property include those necessary for the identification of the parties involved in the transaction (the seller and the buyer) and for the identification of the property being sold.
In general, they are:
• valid identity document of the contracting parties;
• extract from the birth certificate of the contracting parties;
• extract from the marriage certificate (in the event that the contracting party is married in order to verify the property regime of the family);
• extract from the death certificate (in the case of succession mortis causa);
• any power of attorney to sell;
• building permit or declaration that the property was built before 1 September 1967;
• certificate of town planning (when the sale relates to land exceeding 5,000 square meters);
• deed of provenance (deed of sale; succession mortis causa; donation; exchange; transfer decree issued by the Court in the event of a real estate auction);
• qualification (in the event that the property has been the subject of construction work); • any certification of the legitimate status of the property;
• hypo-cadastral survey;
• rasterized plan;
• certificate of habitability or the SCA (Certified Report of Usability);
• any certificate of conformity of the systems;
• APE (Energy Performance Certificate);
• condominium release certifying the balance of all condominium charges by the seller;
• building file (if available);
• building regulations.
The "first home" concessions allow the buyer to obtain a reduction on the taxes due for the transaction, namely:
• registration tax in the amount of 2% (in case of purchase from a private individual) or 4% VAT (if the sale is subject to VAT);
• cadastral tax in a fixed amount of € 50.00 (in case of purchase from a private individual) or € 200.00 (if the sale is subject to VAT);
• fixed mortgage tax of € 50.00 (in the case of purchase from a private individual) or € 200.00 (if the sale is subject to VAT).
Taxes already paid in the preliminary contract will be deducted from the final tax.
Access to the facilities requires the existence of certain conditions:
• these must be deeds for consideration or free of charge concerning the transfer of the right of ownership, as well as the establishment of rights of bare ownership, usufruct, use and dwelling;
• the translation or deed of incorporation must relate to non-luxury buildings, or fall within categories A / 2; A / 3, A / 4, A / 5, A / 6, A / 7, A / 11 and related appurtenances (C / 2, C / 6 and C / 7);
• the property must be located in the territory of the municipality in which the buyer has or establishes, within 18 months of purchase, his residence or, if different, in the one here the buyer carries out his business;
• declaration by the purchaser, to be made in the deed of purchase, that he is not the owner even for shares, even in the regime of legal community 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 first home benefits;
• declaration by the purchaser, to be made in the deed of purchase, that he is not the exclusive owner or in communion with his spouse of the rights of ownership, bare ownership, usufruct, use and residence of another house in the territory of the municipality in which he is the property to be purchased is located.
The "first home" concessions exist even when the buyer already owns an accommodation that is not concretely suitable, due to its size and characteristics, to meet his and his family's housing needs.
Whoever sells the "subsidized" home and within one year of the sale buys another one, even if not completed, having the "first home" requirements, is entitled to a tax credit equal to the registration tax or the VAT paid for the first subsidized purchase and cannot, in any case, exceed the amount of the registration tax or the VAT paid for the second purchase.
The credit cannot be repaid under any circumstances; it may, however, be charged as a reduction of the registration tax due for the second deed of purchase, provided that the beneficiary mentions it to the notary at the time of stipulation. Alternatively, the credit can be used:
• for the entire amount reduced by the registry, mortgage and land registry taxes due on inheritances, donations, deeds and complaints submitted after the date of acquisition of the credit (ordinary ten-year prescription);
• as compensation for the payment of social security contributions or withholding taxes;
• decrease from income taxes, due on the basis of the return to be presented after the date of the new purchase. In the event that the tax is incapable, the partially unused credit can be deducted from the registry, mortgage and land registry taxes due on inheritances, donations, deeds and complaints submitted after the date of acquisition of the credit.
Finally, if the second purchase is subject to VAT, it is not possible to use the tax credit in the notarial deed and it will be necessary to opt for one of the aforementioned points.
The tax credit is not due in the following cases:
• absence of the “first home” requirements in the second purchase;
• the property was purchased at the ordinary rate, without benefiting from the "first home" subsidy;
• the property sold was received by inheritance or donation;
• sale of an appurtenant garage purchased with first home benefits and repurchase, within the year, of another garage with the same benefits. Due to the emergency due to COVID-19, the "liquidity decree", in order to avoid the prescription of the deadline for taking advantage of the "first home" benefits and obtaining the related tax credit, has suspended, for the period from February 23, 2020 to December 31, 2020, the expiry of the following terms:
• term of 18 months from the purchase of the first home within which the taxpayer must transfer residence to the municipality where the home is located;
• 12-month term within which the taxpayer must proceed with the sale of the pre-owned house to obtain tax breaks on the property to be used as his main residence. The terms will return to run from 1 January 2022.
The suspension also concerns the obligation to pay the following taxes:
• registration tax;
• registration fees
• cadastral tax (in the case of inheritances and donations).
The concessions "under 36", introduced by the so-called "Support decree bis" are aimed at individuals who have not yet turned 36 years of age in the year in which the deed is signed and who have an ISEE value not exceeding € 40,000 per year.
The concessions relate to deeds for consideration transferring or constituting the right of ownership, bare ownership, usufruct, use and housing, as long as it is a "first home" (the related appurtenances are also included). These deeds are exempt from registration tax and from mortgage and casale taxes; stamp duty, mortgage taxes and special cadastral taxes remain due. The benefits do not concern preliminary contracts.
If the transaction is subject to VAT, the beneficiaries are granted a tax credit equal to the VAT paid in relation to the purchase.
The tax credit can:
• be deducted from registration taxes, land registry, inheritance and donations due on deeds and reports submitted after the date of acquisition of the credit;
• be used to reduce personal income taxes due on the basis of the return to be submitted after the date of purchase;
• be compensated in the F24 model.
Under no circumstances can the tax credit be refunded.
Loans disbursed for the purchase, construction and renovation of residential properties for which the conditions and requirements described are met are exempt from the substitute tax of registration, stamp, and land registry taxes and taxes on government concessions , envisaged in the amount of 0.25%, provided that the existence of the requisites results from the declaration of the borrower made in the loan deed or attached to it.
The concessions for those under 36 apply to deeds signed in the period between May 26, 2021 and June 30, 2022. In order to support borrowers in difficulty with the payment of the mute installments, the Solidarity Fund for the first home was extended to 31 December 2021, established with the “Cura Italia decree”.
The 2021 budget law introduced different types of building concessions.
They have three main purposes:
• redevelop the real estate property;
• optimize real estate investment;
• allow the taxpayer to obtain a tax advantage.
The building bonuses currently provided are divided into six macro-categories:
• bonus earthquake;
• mobile bonuses;
• bonus facades;
• super bonus 110%.
For each type of intervention, the law identifies the beneficiaries and the extent of the subsidy.
There two way to rent a property, ways establish by the law n. 431/1998 and they are divided in:
• Rent-free housing leases (4 + 4): the rent is freely determined by the parties on the basis of market prices. They have a standard duration of four years, with the possibility of renewal for another four years;
• Housing leases with agreed rent (minimum duration of three years): the rent is defined as "agreed" as it is determined on the basis of the parameters established in specific agreements defined locally between the building property organizations and the most representative tenant organizations. At the first expiry of the contract, if the parties do not agree on the renewal of the same, the contract is extended by right for another two years.
The dry coupon is an optional flat-rate land taxation scheme that allows the landlord of a property to obtain tax savings. The lessor can opt for the flat rate coupon both at the time of registration of the contract and (for multi-year leases) in subsequent years.
In general, the income subject to a flat rate tax:
• it is excluded from total income, as it is not relevant for the purposes of progressive income tax rates;
• on the income subject to coupon and on the coupon itself, deductible charges and deductions, respectively, cannot be asserted;
• the income subject to coupon must be included in the income for the purpose of recognizing the due or the determination of deductions, deductions or tax benefits (for example in the calculation of the ISEE and in the determination of income to be considered fiscally dependent family member).
Therefore, according to the coupon mechanism, the income represented by the rent does not accumulate with the other income of the taxpayer, but is subject to a separate rate, of 10% or 21%, depending on whether it is, respectively, contract with an agreed fee or a free fee.
The tax base on which to apply the flat rate tax is represented by the entire rent (100%).
The option by the landlord of the property for the dry coupon regime excludes the application, for the duration of the option, of the personal income tax (Irpef) as well as the related additional land income produced by the leased property. The dry coupon replaces registration and stamp duties, where due, also on terminations and extensions of the lease agreement; however, it does not replace the registration tax in the event of transfer of the lease.
The law provides for the existence of certain subjective and objective requirements for exercising the option:
• subjective requirement: lessor (or more lessors) who does not intervene in the contract as a business, art or profession;
• objective requirement: the lease can only concern real estate units (and related appurtenances) for residential use falling within categories from A / 1 to A / 11, excluding category A / 10 (offices and private studios).
The dry coupon applies:
• to contracts concluded with public or private non-commercial entities, provided that the destination of the properties for residential purposes is apparent from the contract;
• lease agreements entered into with building cooperatives or non-profit entities as long as they are subleased, inter alia, to university students;
• to short lease contracts (duration not exceeding 30 days).
The dry coupon does not apply:
• to contracts concluded with tenants who act in the exercise of business or self-employment, regardless of the subsequent use of the property for housing purposes of collaborators and employees (according to the interpretation of the Revenue Agency);
• contracts concluded by partnerships, joint stock companies, commercial and non-commercial entities;
• to lease agreements relating to operating properties;
• to sublease agreements. In the event that the lessor has opted for the application of the dry coupon, the right to request an update of the fee for the period corresponding to the duration of the option is suspended.
Like all sectors of the economy, the real estate sector was also affected by the impact of COVID-19. Despite the decline in the number and volume of transactions recorded in the short term, 18 months after the onset of the pandemic there are very encouraging positive signs and the sector is recovering.
Observing the market trends, in the residential sector the demand was concentrated on properties with an extra room or outdoor spaces, favoring peripheral areas in the city center in search of a healthier lifestyle; the demand for real estate units located outside the city such as villas, farms and farmhouses has grown considerably. On the commercial front, the traditional offices have been converted into shared spaces, while respecting the distancing, inspired by the logic of co-working and the sharing of common services to reduce company costs. There is also significant growth in the logistics sector, due to the implementation of digital channels and e-commerce.
The scenarios that emerge from the analysis of the real estate market in recent months show that COVID-19 has accelerated the response to the demands of environmental and energy sustainability: let's think about the construction of luxury condominiums, equipped with roof gardens, common parks and areas for fitness; to co-housing projects, etc. Thanks also to the allocations foreseen by the PNRR, aimed at promoting the transformation of the territory and the regeneration of large inhabited centers, Real Estate is confirmed as a constantly evolving reality as well as a leading sector of the world economy, capable of attracting large investors and generating significant profits.
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