Published by carratelli4 years ago

The value-price system is a mechanism where the taxable base for real estate sales is the cadastral value, not the price...

The value-price system is a mechanism where the taxable base for real estate sales is the cadastral value, not the price. Its application provides tax benefits for the buyer and avoids disputes with the tax authorities.

 

Price value

 

In real estate sales, the price-to-value system allows for the payment of registration, mortgage, and land registry taxes on the revalued land registry income. The buyer who uses this system and indicates the agreed price in the deed it is not subject to investigations.

 

This mechanism applies to transfers of homes and to private individualsFurthermore, the property value price can only be applied to transfers subject to registration tax, while those subject to VAT are excluded. This includes sales and other transfer transactions: between private individuals, with transferors not subject to VAT (such as associations and foundations), and between companies and businesses not subject to VAT.

 

How is the value of real estate calculated?

 

The Revenue Agency clearly explains how the value-price is calculated. The revalued cadastral income, revalued by 5%, must be multiplied by the following coefficients:

- 110 for the first home and its appurtenances

- 120 for second homes classified in categories A and C (excluding A/10 and C/1)

In this way the taxable base is obtained on which the taxes will be calculated subsequently. Since the cadastral value is, in general, inferior compared to the agreed price, with this system the buyer will pay a lower amount.

 

The cadastral value, therefore, is obtained by multiplying the cadastral income for the cadastral multiplier established by law.

 

What is the cadastral income?

 

The cadastral income It is a value attributed to a property based on certain parameters which are:

- the consistency of the real estate unit, i.e. the rooms, its surface area and volume;

- the estimate fee relating to the Municipality and the area where the property is located which depends on the cadastral category of belonging.

 

Price value declaration

 

The value price system requires a explicit request from the buyer to the notary, which must be included in the purchase deed. In the same deed the agreed price must be indicated for the sale of the property. Failure to comply with this obligation entails payment of taxes on the agreed price, rather than the cadastral value, and a penalty ranging from 50% to 100% of the difference between the tax due and the tax already calculated.

 

This mechanism resulted in the values declared in the documents increasing. It is therefore an operation that guarantees... a clear relationship between the citizen and the tax authorities from the beginning.

Carratelli

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