56 VAT Italian Style

:?

Well, I am confused ( what's new I hear you shout !!!)
Italian VAT ( I know it's not called that !!) is 20% ..ok, that much I know?

Do we pay any VAT when we buy property ??

I have all the percentages now that we wil be paying everyone when we complete BUT.......is there VAT on top of these costs ?

we pay 3% tax on the value of the property ( we will be resident and it is our first house and only house) but is there VAT as well ... I wouldn't have thought so ?
BUT...Estate Agent = 3% ...do we pay VAT on that (service ?)and notario, geometra for survey, and Uncle Tom Cobbly an' all !!!

Just having a bit of a panic attack now !!!
Lyn

Category
Property Sales/Rental Advice

Submitted by Anonymous (not verified) on Mon, 02/14/2005 - 12:55

When we bought our house just around the corner from yours we paid 8% of the declared value as we weren't intending it to be our prima casa. Estate agents fees were included in the house price and as far as I'm aware we didn't pay any vat. We did have to pay a fee to the middle man which stung a bit but that was all.

Submitted by Anonymous (not verified) on Mon, 02/14/2005 - 14:32

thanks, I think i'll just check with the estate agent...where abouts are you ??? have you been there long and do youlike it? any useful tips of the area ?

Submitted by Anonymous (not verified) on Tue, 02/15/2005 - 02:32

We don't live there. We planned to but it didn't work out :cry: ........maybe someday. :D

Our house is 7km outside Ostuni on the SP28. We're going down for 3 weeks at the end of march but probably won't be able to meet up this time as we're coming back on 17th april which is before you go I think.

Submitted by Anonymous (not verified) on Tue, 02/15/2005 - 02:37

yes, you're right, we move permanently on 30th April, look us up if you get a chance for a glass of vino !!!! I'll send you a pm. when we have completed with details.

Submitted by Anonymous (not verified) on Tue, 02/15/2005 - 05:34

You should expect to pay 7% registration tax + 2% mortgage tax + 1% cadastral tax = 10% on declared value (generally kept above 105 times cadastral value) if the house is not your residence. VAT of 20% is applicable on the notary, agency & other professional's fees. The mortgage tax unfortunately is not an optional!
David
[url]www.ourtoscana.com[/url]

Submitted by Anonymous (not verified) on Tue, 02/15/2005 - 07:40

Hi David,

No the tax on our house is only 3% because it is our first and only house, and we won't have a mortgage,and we will be applying for residency.

I was only asking ( probably rather stupidly), if there was VAT on top of that. I got a bit confused about one of the other posts detailing VAT on everything, and it suddenly occured to me that I really didn't know if it was applicable to the actual cost of the house.
Thanks for your reply
Lyn

Submitted by Anonymous (not verified) on Tue, 02/15/2005 - 09:56

IVA (the Italian equivalent of VAT) is only paid on the value of the house itself if you are buying a new house, or buying from an IVA registered business ( a builder, for example). In this case, it is levied at 4% or 19%, depending on whether you become resident and is instead of, rather than in addition to, the Imposta Di Registro of 3%-11%.

Remember that you have to apply for residency status formally at the anagrafe of your local comune within 18 months of buying your house - merely [i]being[/i] resident is not enough - and if you don't they'll come and chase you for the extra 7%!

Submitted by Anonymous (not verified) on Tue, 02/15/2005 - 12:01

thanks marc,

I was aware of the importance of applying for residency a.s.a.p. as there had recently been a programme on UK tv about a couple in Umbria who had left it too late ....and despite appealing, they still.had to pay the extra 7 % and it was a major problem for them.....but it is important for everyone to know.
Many Thanks
Lyn