In reply to A newbie all over again! by Annec
In reply to A newbie all over again! by Annec
[quote=scruffythedog;95160]can any one tell me till if [B]20%[/B] CGT[/quote]
Thanks for that information Giangiacomo - so CGT for years 0-5 after purchase is currently 20%? I'd heard previously it was 40%, but that must have been out of date information.
Can one offset renovation, legal, geometra etc. costs subject to proof of payment/purchase (fatture etc)? And I assume the CGT is calculated on the basis of the difference between the declared purchase/sale prices in the atti di compravendita?
Thanks
spoilyourself
In reply to A newbie all over again! by Annec
The tax payable is called [i]'Plusvalenza'[/i] and is only payable if you are non-resident, or the house is a second home.
Expenses (renovation etc,) are deductable, but you have to present the proper documentation to the Notaio.
In reply to A newbie all over again! by Annec
What if I buy land and build a house or buy land with a grezzo or an old uninhabitable house. Does the 5 year rule start the day I purchase the land or the day I complete building or restructuring the house ? :veryconfused:
In reply to A newbie all over again! by Annec
[quote=spoilyourself;95172]Thanks for that information Giangiacomo - so CGT for years 0-5 after purchase is currently 20%? I'd heard previously it was 40%, but that must have been out of date information.
Can one offset renovation, legal, geometra etc. costs subject to proof of payment/purchase (fatture etc)? And I assume the CGT is calculated on the basis of the difference between the declared purchase/sale prices in the atti di compravendita?
Thanks
spoilyourself[/quote]
Exactly: all your assumptions are correct. You have to be able to prove renovation expenses with invoices, although you can declare expenses for which you can't find the invoices and either find the invoices later or risk having to pay more if the tax office challenges your statement.
The big problem in this period of transition is that many people declared much less than the actual selling price 4 or 5 years ago, before the law changed, and are now encouraged to declare the full price as the buyer only has to pay tax on the 'cadastral' (rateable) value. So buyers no longer have an interest in declaring less. You can of course tell them that if they want the house for the price you're asking they have to agree to declare less once again, but they may not be very happy with that. Essentially in that case you would be passing the hot potato on to them. That's OK if they have absolutely no intention of ever reselling their new-found patch of paradise, but if they have any doubts it can become a sticky issue.
I am amazed that many estate agents never explain this problem to their clients and have heard of traumatic scenes with much wailing and gnashing of teeth when the notary calculated the tax bill for the seller.
Giangiacomo
[quote=scruffythedog;95160]can any one tell me till if 20% CGT still applies to houses that you sell before 5 years and is it 0% thereafter. Also what fees and taxes are likey to apply re. solicitors/notary/estate agent. finally how do you go about getting your property on the market is it just a case of foot work to numerous estate agents?
thanks
ian[/quote]
Yes it still applies -unless you intend to buy another house to use as your first home - and it is 0 after 5 years. As the seller you'll have to pay an estate agent's fee usually of 2-3% and that's it. All the other expenses are paid by the buyer, unless the property hasn't been registered as a 'civil dwelling' or has other legal problems that you have to sort out first.
You can market it through as many estate agents as you can find, as long as you don't sign an exclusive mandate with any of them, and you can also set up a website and sell it direct or put it on one of the many property portals, in which case you'll probably have to pay a relatively small advertising fee. You can even try auctioning it on E-Bay!
Giangiacomo