A property in Italy is given a rateable value by the Ufficio di Entrate (tax office) called valore catastale. It is important when you buy a house in Italy to be informed of the rateable value as some of the notary fee is based on this value. If you do a property search requesting the visure catastale the rentable value rendita catastale will be declared. Multiply the rendita catastale by 126 to calculate the valore catastale.
In some cases often in the south of Italy the valore catastale (rateable value) can be higher than the actual market value. Be careful as the notary will declare both values and any large difference may attract an italian finance police (la finanza) investigation. What you believe a bargain the finanza may believe you were purposely understating the value of the property thus tax avoidance by assisting the seller to avoid higher capital gains tax.
To avoid this you can request a perito quantity surveyor to officially value the property and produce a report called relazione di perito where the quantity surveyor swears in front of a judge his valuation of the property. Give this copy to the notary and ensure he makes reference to it in the atto di vendita final purchase deed.
This means you will pay lower notary fees “purchase taxes” and not be accused of tax avoidance.
Of course if the market value is higher than the catastal value then you don’t need to worry about this issue.
The above is an extract from the MIPC “Italian Property Consultant” ebook. Subscribe to our newsletter to receive similar italian property news.
Click here to subscribe to the
If you plan to buy a property in Italy always engage a professional Italian Property Consultant.