The fees to pay are reduced when the purchase can benefit from the “first home” tax reliefs.
Generally, these benefits can be applied when:
- The building to buy belongs to some specific cadastral categories
- The building is located in the municipality where the buyer already has his residency or his working place (or is going to have them within the next 18 months).
- The buyer has some requisites
1. The preferential tax rate
The fees to be paid in case of purchase of a “first home” are:
- If the seller is a private or a company selling in VAT exemption
- Proportional registration fee: 2% (on the cadastral value);
- Fixed “imposta ipotecaria”: €50.00;
- Fixed cadastral fee: €50.00.
- If the seller is a company selling under VAT tax regime
- VAT reduced of 4% (on the purchase price);
- Fixed registration fee: €200.00;
- Fixed “imposta ipotecaria”: €200.00;
- Fixed cadastral fee: €200.00.
The proportional registration fee cannot be lower than €1,000.00. However, the actual amount to disburse could be lower than that amount, as effect of the deduction of the proportional fee already disbursed in the deposit (at the drafting of the preliminary contract) or as effect of the tax credit for the “first home” purchase.
Every act subordinated to proportional registration fee and every other formality required, conducting fulfilment of cadastral and real estate register obligations are exempt from stamp duties, special cadastral fee and “imposta ipotecaria”.
The same tax rate is applied to the annexes too, even if they are purchased through a different act from the “first home” purchase deed.
2. Taxable base used to determine the fees
Transfer with VAT
Even in presence of “First home” benefits, if the purchase is subject to VAT the taxable amount on which the fee is calculated on the added value (4%) is represented by the transfer price, while the registration, mortgage (“ipotecaria”) and cadastral fees are fixed (€200.00 each).
The price-value system
The price-value system is applied on purchases subject to VAT exempt, even in presence of “first home” benefits. In this case, the cadastral value is the result of a multiplication between cadastral income (“rendita catastale”) (re-evaluated of 5%) and the coefficient 110.
Cadastral value “first home” = cadastral income (“rendita catastale”) x 1.05 x 110
A house bought with “first home” benefits has a cadastral income (“rendita catastale”) of €900.00 and the price paid is €200,000.
In presence of request for price-value rules, the taxable amount on which the registration tax of 2% is charged is: 900 x 1.05 x 110 = €103,950.00.
So, the registration fee is €2,079.00 (103,950 x 2%).
In absence of request for price-value rules, the fee is calculated on the transfer value (€200,000.00) and it will be €4,000.00 (200,000 x 2%).
In case of “first home” benefits and price-value on the purchase, it will lead to the same advantages already described in the previous chapter.
|PRIVATE or COMPANY (selling VAT exempt)||REGISTRATION||2% (MIN €1.000.00)|
|COMPANY (selling subject to VAT)||VAT||4%|
|KIND OF TRANSFER||VALUE ON WHICH FEES ARE CHARGED|
|WITH VAT||Price of the transfer|
|WITHOUT VAT||Possibility to request the price-value system (taxation on the cadastral value)
Cadastral value = cadastral income (“rendita catastale”) x 1.05 x 110
Price-value system: conditions and advantages
|APPLIABLE IF||ADVANTAGES FOR THE BUYER|
|- The buyer is a private; - The building is for residential use; - The buyer clearly requires for the price-value system at the moment of the purchase; - The parties describe the agreed price in the deed.||Limit in the "Agenzia delle Entrate" power of investigation;
Reduction of 30% on the notarial fees.
3. Requisites for the benefits
The fiscal benefits to purchase a “first home” are only applicable in case of specific conditions and only if the buyer owns some precise requisites.
In this case, in addition to the information specified in the auto-declaration form, the buyer has to declare to possess the “first home” requisites (this declaration can be submitted later, through an act integrating the purchase deed).
The “first home” can be applied only if the property to buy belongs to the following categories:
A/2 “abitazione di tipo civile” (living home);
A/3 “abitazione di tipo economico” (inexpensive home);
A/4 “abitazione di tipo popolare” (social home);
A/5 “abitazione di tipo ultra popolare” (ultra social home);
A/6 “abitazione di tipo rurale” ( country home);
A/7 “abitazioni in villini” (cottage);
A/11 “abitazioni e alloggi tipici dei luoghi” (typical and characteristic home).
The “first home” benefits are not allowed for buying of property belonging to the cadastral categories A/1 “abitazioni di tipo signorile” (luxury real estate), A/8 “abitazioni in ville” (villa) and A/9 “castelli e palazzi di eminenti pregi artistici e storici” (castles and historical residences).
The benefits are applied for purchase of annexes, which are classified or classifiable in the cadastral categories C/2 “magazzini e locali di deposito”(storage buildings), C/6 “rimesse ed autorimesse”(boxes and garages), C/7 “tettoie chiuse o aperte”(open or closed canopies) limited to one annexe each category.
However, these annexes must remain at service of the main dwelling constantly, the house bought with “prima casa” benefits.
The place where the property must be located
Another important requisite is the place where the property is located.
The real estate must be located in the municipality where the buyer has his residency.
If the buyer resides in another municipality, he has to transfer his residency in the place where the property is located within 18 months from the purchase date.
The declaration must be contained in the purchase deed under penalty of expiration.
The evidence shall be constituted by the date in which the declaration attesting the residency change transfer is submitted to the municipality office.
The right to the benefits is valid as well for properties located:
- in the municipality where the buyer pursues his activity (even if an income is not implied, such as studying activities, volunteering, sport…);
- in the municipality where the company director pursues his activity or where he owns his office, if the buyer has to live abroad for working reasons;
- within the Italian territory, as long as the purchase is in “first home”, if the buyer is an Italian citizen living abroad. His condition of emigrant can be attested by a certificate issued by AIRE or by a self-certification in the purchase deed.
When the buyer is a member of the army or police forces, the condition for which he has to reside in the municipality is not required.
4. A “first home” is already owned
From 1. January 2016 the tax reliefs have been extended to taxpayers who already own a property bought with “first home” benefits under condition the owned house would be sold within one year from the new purchase.
The benefits are applied even in case of a new purchase free of charge (donation or inheritance)
In the purchase deed of a new real estate under light regime (purchase, donation or inheritance acts) it is mandatory to declare the commitment of selling the owned property within one year. If this will not happen, the benefit to buy as “first home” are not valuable and, in addition to the payment of higher fees and related interests, it is added a 30% penalty.
It is possible to require a reduction in case of failure in the selling commitment, submitting an application of benefit warranty to the “Agenzia delle Entrate”.
The taxpayer who, after the purchase, realizes that is not able to respect the commitment (selling of the owned real estate) can submit the specific application to the office where the deed was registered. Through this application, to submit within one year from the new purchase, the taxpayer declares his inability to sell and has to pay the due taxes. It will be requested the calculation of the interests to pay.
When the new property is located in the same municipality of the owned property, bought without “first home” benefits, these benefits are not allowed on the new purchase.
This rule is valid even if the taxpayer declares the commitment to sell the owned property within one year from the new purchase.
Benefit on the new purchase when a home is already owned
|PREVIOUS HOME BOUGHT||PREVIOUS HOME LOCATION||PREFERENTIAL FEES ON THE NEW PURCHASE|
|WITH FIRST HOME BENEFITS||Previous home and new home in the same municipality||YES under condition to sell the previous home within one year|
|New home in any municipality on the national territory|
|WITHOUT FIRST HOME BENEFITS||Previous home and new home in the same municipality||NO (it is necessary to sell the previous home to take advantages from the benefits)|
|Different municipality from where the new home is located||YES It is not necessary to sell the previous home to take advantages from the benefits)|
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