Property Market in Italy
Changes in Property Transfer Tax in Italy
The article topic Property Market in Italy, Property Purchase in Italy
17 Oct 2013
The government is trying to fight this and prevent further decline by lowering taxes to help poorer and middle class Italians to acquire their family home. On the other hand, property transfer tax for welthier second home buyers and luxury properties will increase to compensate the tax revenue shortfall.
From the 1st January 2013 the property transfer tax for secondhand properties will be reduced from 3% to 2% of catastral value for buyers acquiring their first residence. The mortgage and catastal taxes will be lowered accordingly.
The transfer tax for agricultural land will decrease from 15 to 9%.
At the same time, the second home buyers of secondhand properties will have to pay 9% of catastal value instead of 7% in 2013. This tax will affect also the properties clasified as luxury even if acquired as a main residence as well as buildings of historical value. The buyers of these properties will benefit from the reduction of mortgage and catastal taxes too.
However, buying a secondhand property in Italy is still much cheaper than in France, Spain or Portugal as the tax is based on catastal value of the property. The catastal value tends to be less than half of the real price.
The property transfer tax is replaced by VAT when buying a new-built property. VAT will remain the same in 2014 - 4% of purchase price for a main residence and 10% for a second home.
All taxes as well as notary fees are paid by the buyer in Italy. A seller is only liable for the capital gains tax if applicable.
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