Selling a property in Italy - beware of hidden fees and taxes

The demands of the administration are growing in Italy / Gtres
The demands of the administration are growing in Italy / Gtres
18 March 2020, Redaction

When you're selling a property in Italy, beware of hidden taxes and costs. As reported by the Italian newspaper Italia Oggi, Inland Revenue in Italy (its official italian name being "Agenzia delle Entrate") is increasing taxes and fees for minimum amounts relating to deeds stipulated by notaries.

According to what has been pointed out, in addition to the normal taxes requested for the deed stipulated, it seems that the authorities often request a further amount of 245 euros: 200 euros as registration tax and 45 euros as stamp duty.

In the event that a seller hands over a dwelling in advance, in the case of a new property, "Inland Revenue considers that a higher tax should be charged". This is, in this case, an additional fixed registration tax of 200 euros, in addition to that already covered in Article 10 of the Tariffa, Part I, of the Presidential Decree 131/86.

This is because Italian Inland Revenue believes that "the will of the contracting parties, in addition to that of concluding the so-called 'agreement', also includes a connected and supposed loan for which the tax authorities consider that the taxes are also due." This is covered in Article 5, paragraph 4, of the Tariffa, Part I, of the Presidential Decree 131/86.

But what are the most frequent cases in which higher taxes are required, compared to what is self-assessed by the notarial deeds? Apparently, the cases in which the parties within the deed establish a penalty clause: if a child buys a property and the parents intervene to pay all or part of the price of the house, indicating in the deed that they are doing so as a direct donation, often Inland Revenue in Italy requires 245 euros plus tax in the case of sale, featured in article 1 of the Tariffa, part I, of the Presidential Decree 131/86

As specified by the newspaper, Italia Oggi, the trade union for Italian notaries, Federnotai Lombardia, has intervened on the issue and has decided to provide assistance to Lombardy notaries in filing appeals against the Agenzia delle Entrate (Inland Revenue). The Lombardy Notaries' Trade Union Association has organised a meeting to deal with the legal issues surrounding underlying tax claims and to present "some draft appeals that the taxpayer, or the notary, in some of these cases, may present to protect themselves and resist tax claims".

Article seen at: Vendite immobiliari, al fisco le tasse non bastano mai (Italia oggi)

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