1110 Residents registry tax

I've just been browsing the various forums and came across a reference to the discounted registry tax for residents (3% I believe) not being available if the propert is greater than 240sqm. This is the first reference I've seen to the size of the property having any bearing on the tax rate. Does anyone have any further information on this?

Category
Property Sales/Rental Advice

Submitted by Anonymous (not verified) on Mon, 08/15/2005 - 09:34

Yes!. I believe that this is the case. We bought in June - expected the discount but...over 240sq. mtrs so it fall in to to the catagory of 'luxury'??- so didn't qualify. Bear in mind also that if you achieve the discounted registration tax at 3%, you cannot sell for five years ( well you can but you will be charged the extra tax on completion of sale).

Good luck

Submitted by Anonymous (not verified) on Mon, 08/15/2005 - 15:49

Thank you for the confirmation. We are intending to buy in Le Marche early next year and were considering property around that size. Maybe we'll have to rethink. Do you know how it's measured? Is it just the main building or does it include any outbiuldings? What if there are two buildings on the site?

Submitted by Anonymous (not verified) on Tue, 08/16/2005 - 03:50

[QUOTE=Ian and Sandra]Bear in mind also that if you achieve the discounted registration tax at 3%, you cannot sell for five years ( well you can but you will be charged the extra tax on completion of sale).[/QUOTE] You can sell within 5 years but to avoid paying the difference in the tax you need to buy another property within 1 year of the sale of the first property.

Submitted by Anonymous (not verified) on Tue, 08/16/2005 - 09:55

Try a PM to notaio ???. I think the "habitable" area is used to calculate, but am probably wrong by a long way

Submitted by Anonymous (not verified) on Wed, 08/17/2005 - 05:06

I find it difficult (though not impossible!) to believe that anyone could introduce a tax that is as non-incremental as this.
Consider the effect of this tax on someone buying a house of 241 sq/m, compared to someone buying one of 239 sq/m. Using a median price of €2,000/sq metre, the tax paid by the buyer of the larger house would be about €48,000, as opposed to about €14,000 paid by the buyer of the smaller house.
€34,000 for an extra tax for 2 square metres seems pretty punishing.
I don't see how a house of 240 square metres would automatically be a 'luxury' anyway. For a single person, it might be on the luxurious side, whilst for a typical Italian extended family of 6, it would be pretty much a bare neccessity.
I'd really like to see evidence of this rule, from the horse's (or preferably the Notaio's!) mouth.

Submitted by Anonymous (not verified) on Wed, 08/17/2005 - 05:37

[QUOTE=Marc]I find it difficult (though not impossible!) to believe that anyone could introduce a tax that is as non-incremental as this.
[/QUOTE]

UK Stamp Duty on property sales is a bit like that. [yes I know it does have 4 bands, but at each band change the increased tax is paid on the full amount.

For example -
house value £250.000- tax @1% = £2.500 [band 2]
house value £250.001 - tax @3% = £7.500.03p [band 3]

Submitted by Anonymous (not verified) on Thu, 08/18/2005 - 12:07

We are not really bothered about capital gains tax as (all being well) we have no intention of selling within five years. This cut off probably wouldn't influence our choice of property either, but at least knowing about it allows us to calulate costs more accurately and hopefully eliminate (?) any nasty surprises. Incidentally, after working as a tax accountant in Australia for fifteen years nothing about tax laws would surprise me!