What taxes does someone who buys a property have to pay?

Buying a property is an important milestone in the life of each of us, but it is necessary to take into account different taxes to pay. Registration tax, VAT, registration tax, mortgage and cadastral tax are just some of the expenses that can affect the buyer’s budget. In this article, we will explore all these taxes and expenses in detail, to allow you to be prepared and aware before taking the big step in buying a home

Registration tax on the purchase of a property

Registration tax is one of the taxes to be considered when buying a property and it varies depending on the value of the property itself. This is a percentage applied to the sale price or to the cadastral income of the property, depending on which value is higher. Usually, the rate is 9% for residential properties and 10% for those for different uses. However, there are concessions for buying a first home, which can lead to a reduction in tax. It is important to keep in mind that the registration tax must be paid within 30 days from the conclusion of the act of sale

VAT on the purchase of a new property

VAT on the purchase of a new property is another tax that must be taken into account. While registration tax applies to used properties, VAT applies to new properties. The standard rate is 10%, but it may vary depending on the region and any tax breaks. It is important to underline that VAT is calculated on the sale price of the property, including any ancillary charges. In some cases, such as when buying luxury properties or for commercial purposes, the rate may be increased. It is essential to carefully check the tax regime applied to the property before proceeding with the purchase

The registration fee on the purchase of a used property

The registration tax on the purchase of a used property is a tax that affects the value of the property itself. The rate varies depending on the region and can fluctuate between 8% and 9%. It is important to remember that the registration fee must be paid within 30 days from the conclusion of the act of sale. In some cases, especially when buying a first home, it is possible to benefit from benefits that reduce the rate. It is essential to inform yourself in advance about regional provisions and verify the possible presence of tax breaks so as not to run into unpleasant surprises
during the purchase process.

Mortgage and cadastral tax on the purchase of a property

Mortgage and cadastral tax represent another cost to consider when buying a property. This tax is linked to the registration of the mortgage on the property and the registration of cadastral data. The rate varies by region and can be calculated as a percentage of the value of the mortgage or the cadastral income. It is important to note that the mortgage and cadastral tax is borne by the buyer and must be paid within 20 days from the date of registration of the act. It is advisable to do a thorough check of the regional provisions to calculate this tax correctly and not run into unwanted surprises

Other taxes and expenses to consider when buying a property

In addition to the taxes already mentioned, there are other expenses to consider when buying a property. For example, it is necessary to take into account notary expenses, which include the notary’s fee for concluding the act of sale and the registration of the deed with the land registry. In addition, there may be real estate brokerage costs, if you decide to use an agency to search for the property. It’s also important to consider mortgage expenses, such as interest and bank fees. Finally, we must not forget the expenses for utilities, such as electricity, gas and water, which must be activated in the name of the buyer

Buying a property involves different taxes and expenses to consider. From registration tax to VAT, from registration tax to mortgage and cadastral tax, without forgetting notary fees and those related to mortgages. It’s essential to learn in depth and plan carefully to avoid financial surprises when buying your dream home

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