Corporate Works

Buying a house in Italy – taxes to pay, fiscal aspects

Piazza Castello - Turin

Piazza Castello – Turin

When you have to buy a house, you must keep in mind certain tax aspects. Let’s see what they are depending on whether you buy a house from a construction company or an individual.

As noted by the National Council of Notaries, the purchase and sale of construction or renovation companies, except in special cases, are subject to VAT, which is paid directly to the seller.

The VAT rate to be applied on the sale price will be:

  • Equal to 10% in the absence of first housing benefits;
  • Equals 4% if first home benefits are requested.

The same tax treatment is applied to the allocation of housing to members of a housing construction co-operative.

In the case of a purchase subject to VAT, the following taxes will also be paid to the notary, who will then pay it to the Tax Agency (Agenzia delle Entrate):

  • Registration fee: 200 euros.
  • Mortgage tax: 200 euros.
  • Cadastral tax: 200 euros.

If, on the other hand, you buy a house from individuals, the registration, mortgage and registration taxes are paid by the buyer to the notary who will in turn pay them to the Tax Agency (Agenzia delle Entrate) during your registration.

In the absence of facilitations:

  • Registration fee: 9%.
  • Mortgage tax: 50 euros.
  • Cadastral tax: 50 euros.

Rates are normally applied to the stated selling price; in the case of transfer of residential properties to natural persons, the buyer may request payment of the registration tax on the “cadastral value” (value-price) of the property (i.e. the resulting value of the multiplication of cadastral income for the legal coefficient, which is 115.5), regardless of the actual amount of the sale price, even if it is higher than this value.

The minimum tax is always € 1,000.

In the presence of subsidies for the purchase of the first residential house:

  • Registration fee: 2%.
  • Mortgage tax: 50 euros.
  • Cadastral tax: 50 euros.

Rates are normally applied to the stated selling price; in case of transfer of residential properties to natural persons, the buyer may request the payment of the registration fee (imposta di registro) on the “cadastral value” (value-price) of the property (i.e. the resulting value of the multiplication of cadastral income for the legal coefficient, which is 115.5), regardless of the actual amount of the sale price, even if it is greater than this value.

The minimum tax is always € 1,000.

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