BUYING A LAND IN ITALY: HOW MUCH DOES THAT COST?
Are you interested in buying a land in Italy, in order to build there your new house or just enjoy the fresh air? If so, we have prepared for you a short article with the extra costs and taxes that have to be added to the price of the property.
TAXES
1. Building land
If you want to buy a building land and the owner is a natural person or a VAT exempt company, the taxes would be the following:
registration tax – “imposta di registro”: 9% of the purchase price, the minimum amount is 1.000€;
cadastral tax – “imposta catastale”: 50€;
mortgage tax – “imposta ipotecaria”: 50€.
If the seller is an ordinary company, so a company that has to pay the Value-Added Tax – VAT to the State, the taxes on the purchase are the following:
registration tax – “imposta di registro”: VAT in the amount of 22% of the purchase price, the minimum amount is 1.000€;
cadastral tax – “imposta catastale”: 200€;
mortgage tax – “imposta ipotecaria”: 200€.
2. Agricultural land
On the other hand, if you’re searching for an agricultural land, the taxes would be the following, and don’t change if the owner is a natural person, a VAT exempt company or an ordinary company:
registration tax – “imposta di registro”: 15% of the purchase price, the minimum amount is 1.000€;
cadastral tax – “imposta catastale”: 50€;
mortgage tax – “imposta ipotecaria”: 50€.
The taxes would be different just in case you are a direct farmer or if you own an agricultural company. This is because in these two cases the State offers a tax relief called “Piccola Proprietà Contadina” – translated would be something like “small farmer’s property”. With this relief the taxes would be the following:
registration tax – “imposta di registro”: 1% of the purchase price
cadastral tax – “imposta catastale”: 200€;
mortgage tax – “imposta ipotecaria”: 200€.
When selling or buying an agricultural land we have to keep in mind also the legislation concerning the “Right of First Refusal”, which gives precedence over the purchase of the property to the tenant farmers and farmers of the neighboring land. It is therefore mandatory to notify them of the sale of the land and find out if they’re interested in buying.
NOTARY FEE
In Italy it is mandatory that a notary prepares the final sale and purchase agreement. The notary fee varies according to the purchase price and from notary to notary. It usually amounts to at least 1,500€. On the following link you can view an indicative scheme of notary fees in Italy.
REAL ESTATE COMMISSION
If the selling and buying of the land was handled by a real estate agent, it will be necessary to pay him his commission. It usually amounts to 4% of the selling price plus 22%VAT.
If you need help when buying a real estate in Italy, don’t hesitate to contact us by calling us on +39 3286066138 or by writing us an e-mail to info@boreaimmobiliare.it: we will be very happy to help you!