Taxes and fees if you buy a property at an auction in Italy

Gtres

21 November 2019, 18:09

If you decide to buy a property at an auction in Italy, you have to pay some taxes and expenses. Let's see which ones.

As far as the taxes to be paid on the purchase of a property at auction are concerned, they are the same as those levied on a traditional sale and purchase. That is to say, you pay a different amount depending on whether it is a first or second home purchase and whether the seller is a private individual or a construction company (in this case you will pay VAT if the sale takes place within five years of completion of the construction).

Expenses when buying a property at an auction

The purchase of an auction house also involves expenses, some mandatory, others only possible.

First of all, you need a deposit of between 10 and 20% of the bid that will be returned if you do not ultimately win the property or will be discounted from the total in case you win the auction.
Ancillary expenses related to taxes and delegated to the sale or the person who is appointed by the Court for all bureaucratic activities related to the auction.
Condominium expenses: if the previous owner has not paid the condominium expenses, you will be required to pay them in their place for the current and previous year.

To these compulsory expenses should be added also those for the urban and cadastral amnesty (in case of land discrepancies or building abuses) and any costs for the liberation of the property, which may be borne by the court or the buyer.