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Recent changes to Italian Land Registry, buying house in Italy, registry in italy to buy house
When you purchase a home in Italy, there are a number of taxes that must be paid on top of the house price. This includes the mortgage tax, which is due to cover the registration of a transfer of ownership on the title deeds, the cadastral tax, covering the update to the Building of Land Register and the registry tax, which confirms the registration of the purchase deed in the Public Registers – this ensures the content of the deed cannot be altered or modified, and must be done within 30 days of completion.
Since the beginning of 2014, a reduction in these taxes has made it even easier to purchase an Italian property. If you are buying your first home in the country, registry tax has been lowered from 3% from 2% – meaning there is a 1% discount on the overall value of the property. There has also been a reduction in the cost of cadastral and mortgage tax; these are now €50 each instead of €168 each.
Overall, this means that when buying a holiday home in Italy overseas buyers will now pay 9% of their purchase price in taxes, plus €100 for cadastral and mortgage taxes, instead of 10% plus €336. This could add up to a saving of up to €1,260 for every €100,000 they spend, and with property prices still low but beginning to increase across the country, there really could not be a better time to buy.
Financially savvy overseas property buyers have already been flocking to buy property in Italy, thanks to the lack of inheritance tax and no Capital Gains tax after five years – join them and find your dream Italian home today! Click here to search through our properties here.
What’s more, you could save even more by using our trusted currency partner Smart Currency Exchange to transfer your funds, rather than a bank. Smart Currency’s exchange rates are typically up to 4% better than those offered by the banks AND they do not charge transfer or renewal fees. Smart Currency will allocate you a dedicated trader who is not remunerated on commission, meaning they will offer impartial currency advice, monitoring the market for you and making sure you know the best time to exchange.
