1858 Tax on a new build?

Could anyone tell us please what the tax ( IVA) is on a new build. Our geometra has said 20% but I have read 10% except for luxury properties. We are talking about 95 square metres for 170k euros, so hardly luxury!
All help appreciated,

Louise

Category
Building/Renovation

Submitted by Anonymous (not verified) on Sun, 11/13/2005 - 11:59

The IVA on a new house is 10%, if you don't intend to become resident, reduced to 4% if you declare your intention to become resident AND apply for residence at your local comune with 18 months. This discount is known as 'Prima Casa', so if you own no other property, you are eligible for the lower rate.
Hope this helps.

Submitted by Anonymous (not verified) on Mon, 11/14/2005 - 00:10

From your postings elsewhere I think you may be building your own house in which case different VAT rules may apply. Even if it is your first home you may not get the 4% on everything. You will also recall “John in Abruzzzo’s” reply to your “Cost of new build” thread that the purchase of land from a commercial source will cost 20% in VAT. I would advise you to employ the services of an accountant quickly. If you can find an "avvocato" specialising in commercial matters, this is even better. A friendly chat with your bank manager about all the aspects of the "new build " will provide you with most of the info you require. After all he/she is financing the new builds and also knows most of your potential suppliers. If you are building for resale then you pay the full VAT, you get some of it back from the buyer 4 or 10 % and any difference back from the government "in due course". The saying "when in Rome do as the Romans do" is particularly relevant when it comes to invoicing from your suppliers. You will save a lot of money by exercising discretion. It is for that reason that you find that many suppliers will issue their invoices after you have paid.

If you require a checklist on the items you need to budget for and some pointers on each please send me a PM. I shall in Italy this week and will be able to help.

I hope this helps!
Good luck