In Italy, to buy a house there are different situations: a property sold by a private or by a building company.
Further, there are some advantages in case of buying a first home:
Buy a house by private:
- Do not pay the VAT.
- Ability to pay the registration tax rate reduced by 3% instead of 7%.
- Mortgage and cadastral taxes is fixed at 168€ each one, instead of 2% and 1%.
Buy a house by building company:
1. Within 4 years from completion of the works:
- VAT at 4%.
- Register, mortgage and cadastral taxes fixed, equal to 168 euros each one.
2. Over 4 years from completion of the works:
- Exempt from paying VAT – Register tax at 3%.
- Mortgage and cadastral tax fixed at 168€ each one.
To obtain these benefits, check that:
- The house has not luxury features.
- The property is located in the territory in which the buyer is resident (or resident within 18 months).
- Not having any other property purchased with these facilities.
All these tax benefits are lost in case of mistaken declarations and if the house is sale before a period of 5 years from the date of purchase, unless within a year the buyer purchases another building to use as a main home.
There are two methods of payment:
- By cash.
- A combination between loan (by bank) and money: a value of not more than 70-75% of the property is covered by loan bank and the remaining 30-35% must be paid by cash.
Short guide to buying a house more
