Instructions for buying and selling
Instructions for purchasing a house between tax relieves and levies
We prepared a guide for buying and selling that tries to help you in clarifying on taxes aspects connected with purchasing a property. In order to get more detailed information on levies and taxes relief, please, download the complete pdf guide.
When a buyer purchases a property, he has to pay for taxes. In order to be more precise, if the seller is a private or a building (or no building) company, and the works are ended more than 4 years ago, the taxes to pay are:
- Registration tax (7%);
- mortgage bond (2%);
- cadastral tax (1%).
On the contrary, if the seller is a building company (or a company that restored the property) and the purchasing happens within 4 years from the end of the works, the due taxes are:
For a private sale the taxable amount for paying taxes can be established on the cadastral value of the property, instead on the paid value, on the condition that on the notarial deed is written the real amount settled for the agreement.
In case of purchasing a first house the laws provides for a lower tax regime. Especially if the purchase is among private citizens, that are not obliged to pay VAT, the first house tax relief gives the opportunity to pay:
- Registration tax with rate reduced of 3% (instead of 7%);
- Fixed mortgage bond and cadastral tax euro 168,00 each. Who buys a house from a seller liable for VAT, will have to consider the new terms of taxation:
- VAT 4%, plus registration tax, mortgage bond and cadastral tax with a fixed rate, this in case the conveyance is made by a building company and the purchase happens within 4 years from the end of the works;
- Registration tax with 3% rate plus fixed mortgage bond and cadastral tax, if the conveyance is made by a no building company or a building company after 4 years from the end of the works.
Download the complete guide to buying and selling with all the taxes indication and regulations.
