The deed of sale in front of a notary public must also be stipulated when the property you are buying will be a second home.

The taxes that are demanded by the notary public and that he will then have to pay to the Government will certainly be:

• the proportional registration tax (or in some cases, alternatively, VAT)
• the cadastral tax;
• the mortgage tax.

Finally, depending on the type of contract, other costs may appear, such as land registry fees, conveyancing fees, registration fees, Chamber of Commerce fees, or stamp for telematic transmission.

Land Registry fees refer to the fact that after signing the deed of sale, the notary has to register the change of ownership of the property in the Land Registry Office of the place where the house is located.

When the owner of the property you wish to buy is a private citizen, the charges will generally be easy to determine. For example, you will not have to pay VAT, while mortgage and cadastral taxes will both be fixed at 50 euro each.

On the other hand, an extra calculation must be made for the REGISTRATION TAX, which corresponds to 9%  and is applied to the cadastral value of the property. This last item is the result of the cadastral annuity of the house, which is indicated inside the title search, multiplied by a coefficient, which is always 126.

On the other hand, when the selling party is the company that built the property, the expenses increase and in some cases the 10% VAT may also reappear. In fact, after 5 years from the construction of the property, registration tax at 9 % normally applies, unless the selling company chooses – instead of registration tax – to apply VAT. Which in this case is, precisely, 10%. The other taxes – registration, cadastral and mortgage taxes – are all 200 euros each.

If the house is then considered a luxury property (i.e. classified in the cadastral categories A/1, A/8 and A/9), the VAT is 22%.

The notary’s fee is another item of expenditure that must be taken into account, but which cannot be calculated in advance, since it is determined independently by the professional. For this reason, it can always be a good idea to request a quote first.

Do you need more information about property purchase process and avoiding pitfalls? Please contact us at +39 0831 1980021 or + 39 3392991782 or by e-mail at info@staniscilawfirm.it