Taxation in real estate sales

Taxation in real estate sales

Real estate taxation in Italy in the case of sales is made up of taxes on assets and on transfer deeds. Taxation differs depending on the nature of the properties (residential, instrumental, commercial) and the subjects involved (natural persons or companies).

Sales of properties between private individuals

In the case of residential properties intended as a main residence, the first home concessions apply if certain subjective and objective requirements are met:

• the property must be of a residential type and not luxury;
• the beneficiary must not be the owner of other properties in the same municipality or in others if he has already benefited from the first home benefit;
• the subject must be resident in the municipality where the property is located or transfer residence within 18 months.

If the conditions are met, the registration tax is subject to a rate of 2%, calculated on the cadastral value of the property and not on the purchase price. In the case of sales of second homes or commercial properties between private individuals, the registration tax will be 9%. Mortgage and land registry taxes are set at €50.00 each.

Sales of properties by businesses

The registration tax is an alternative to VAT. In fact, deeds subject to VAT are not subject to registration tax, except as provided for in relation to the leasing and transfer of buildings by construction companies. This principle is provided for by Article 40 of the Consolidated Law on registration tax, which provides that the registration tax applies in a fixed amount. In the case of purchasing a VAT-exempt property, the buyer will have to pay the registration tax on a proportional basis of 9%, and the fixed mortgage and land registry taxes of €50.00 each. When VAT is applied, the buyer will have to pay the value added tax and the fixed registration tax of 200 euros, as well as mortgage and land registry taxes.

VAT applies in the case of :

• sales carried out by construction or restoration companies within 5 years of completion of the construction or intervention or even after 5 years,if the seller chooses to subject the operation to VAT (the choice must be expressed in the deed of sale or in the preliminary contract);
• sales of residential buildings intended for social housing, for which the seller chooses to subject the operation to VAT (also in this case, the choice must be expressed in the deed of sale or in the preliminary contract).

VAT rates

The VAT rate for the purchase of a first home is 4%, which becomes 10% for all other properties and 22% in the case of luxury properties. The percentage is calculated on the purchase price.

Reverse charge

In the case of properties that are instrumental in nature (in the cadastral classification reference is made to the acronyms: A10, B, C, D, E) and in the event that the transferor opts for VAT liability. of the transfer, the reverse charge or reverse charge applies. The registration, mortgage and cadastral taxes are paid by the notary at the time of registration of the deed.

Expertise Re is a real estate agency based in Catania in Corso Sicilia 105, which operates mainly in Palermo and Catania, also through a network of selected real estate agents, present throughout Sicily, Calabria, Rome and Milan.

Expertise Re is a real estate agency specialized in the sale and rental of entire buildings, income properties, commercial premises, industrial warehouses, offices, executive buildings and hospitality and residential properties.

He also has skills in the evaluation of individual assets and real estate portfolios, and in the study and analysis of intervention plans aimed at the disposal and redevelopment of properties according to specific needs and objectives.

We believe that only by starting from specific needs can we identify the most suitable real estate investment solutions.

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