What are property purchase taxes in Italy?

This is one of the frequently asked questions in your requests, but there is no quick answer.

The purchase taxes will depend on:

• Who is the seller
• Who is the buyer
• What is for sale (apartment, house with land, land, from the primary market or the secondary market, etc.)

The most common situation which we deal with on our market on second houses on lake Como is:

A private person buys residential real estate as a “second home” (it means that the buyer is not going to become a resident there), 

and then the answer is:

• if you buy a new home from a construction company - 10% VAT is paid
• if you buy property from the secondary market from a private person - the registration tax is paid in the amount of 9% of the cadastral value of the property

Example 1 - a purchase from the primary market

Apartment 80 sq.m. and garage in the new residence

Price 275.000 Euro

Purchase Taxes:

• VAT 10% - 27.500
• Stamp Duty tax  (imposta di registro) - 200 euros
• Land Registry tax (imposta ipotecaria) - 200 euros
• Cadastral tax (imposta catastale) - 200 euros

Total purchase taxes: 28.100

Example 2 - a purchase from the secondary market

Apartment in a residence with a swimming pool and a parking place, fully furnished

Price 278.000 Euro

Purchase taxes

• Stamp Duty tax  (imposta di registro) 9% of cadastral value - 5.262 euros
• Land Registry tax (imposta ipotecaria) - 50 euros
• Cadastral tax (imposta catastale) - 50 euros

Total taxes to be paid at the deed= 5.362 euros

Tip for buyers how to understand the total amount needed for the purchase 

• For real estate from the secondary market, add to the price - 8-9% of the price (all transaction costs including agency commission and notary services)
• For real estate from the primary market, add to the price - 15-16% of the price (all transaction costs including agency commission and notary services).

But, we reiterate that this is not the precise definitive calculation, it is a synthetic and approximate method.

After viewing the properties, you select several solutions that you like, and based on your situation (who is the buyer, whether you will become residents or not, whether or not land is included in the property, if you take a mortgage loan or not) – our agency will give you an accurate calculation of the purchase costs, which will help you make the final decision.

Domanda: Quale dovrebbe essere l'ammontare del reddito passivo per ottenere un permesso di soggiorno in Italia "residenza eletti

Risposta:

Il visto per residenza elettiva consente l’ingresso in Italia, ai fini di soggiorni, allo straniero che intenda stabilirsi nel nostro Paese e sia in grado di mantenersi autonomamente, senza esercitare alcuna attività lavorativa.  A tal fine lo straniero dovrà fornire adeguate e documentate garanzie circa la disponibilità di un’abitazione da eleggere a residenza, e di ampie risorse economiche autonome, stabili e regolari, di cui si possa ragionevolmente supportare la continuità nel futuro. Tale risorse, comunque non inferiori a 31.000 euro /anno (ovvero, al triplo dell’importo annuo previsto dalla tabella A allegata alla direttiva del Ministro dell’interno del 1 marzo 2000), dovranno provenire dalla titolarità di cospicue rendite (pensioni, vitalizi), dal possesso di proprietà immobiliari, dalla titolarità di stabili attività economico- commerciali o da altre fonti diverse dal lavoro subordinato. 

La nostra agenzia fornisce ai clienti un contatto di un avvocato specializzato in queste consultazioni che aiuterà a comprendere tutto nei dettagli.

Q: 

Do I need an official translator for the notarial deed of sale? I use an Italian friend to review all documents for me and I also translate it in English. 

A: 

The deed in Italian must be translated into a foreign language when:

- the notary does not know the foreign language;

- one or more parties declare that they do not know the Italian language;

The interpreter must be present when the deed is received and has the task of allowing communication between the parties and the notary who speak in a different language. (so your friend should be present and should do the oral translation during the deed)

The interpreter swears an oath or affirms to a notary that the contents of a translation are true and this must be mentioned in the deed, as far as the name of the interpreter.

The interpreter must also make the written translation of the deed and its attachments which must be appended next to the original or at the bottom. (therefore in advance your friend should translate the text of the deed and in the study of the notary be ready to make the necessary changes if there will be during the deed)

The interpreter must sign both the original and the translation at the end and in the margin of each sheet.

If there is not a full coincidence between the translation and the original in Italian, the latter always prevails. 

It is here that I would like to warn you that it is very important that the "friend" translator does his job well. 

Q:  Dear Hanna, Please find attached e-mail, Tassa Rifiuti, the garbage tax that has to be paid by the 16^th of September. It doesn’t have a IBAN reference. Will it be charged automatically? Otherwise  I will have a problem to know where to pay the tax.

A: The garbage tax and property tax CAN NOT be automatically paid from your bank account. Therefore, from abroad it is more convenient to pay this tax by bank transfer. Almost all the municipalities on Lake Como published on their websites their bank account data for paying taxes from abroad.

But if you are in doubt, or do not quickly find this information on the website of the Municipality, it is better to write directly to the tax office (Ufficio Tributi). For the city of Tremezzina it will be the following address

tributi@comune.tremezzina.co.it

Q: Dear Hanna, As I mentioned in e-mail below me and R. are updating our legal documentation. We have a question if we need a specific  Italian “last will” (or if the Swedish is good enough) in order to regulate the property in Italy if someone of us pass away?

A: The law applicable to your inheritance will be the law of the country of which you are a resident.

But the inheritance for real estate located in Italy will be processed according to the procedure provided for by Italian law.

Therefore, if you are preparing a will in your country in your own language, be sure to mention in a separate paragraph how you plan to manage your assets in Italy, movable (for example, your account in an Italian bank) and immovable (a description of your property can be found in your Italian notarial deed of sale)

You can also  make a will for the Italian property  only with an Italian notary public.  About the will on the website of Italian notaries in English can be read here

Please check all information with your trusted lawyer.