Home Buying Guide
This guide aims to provide an overview of the main rules to follow when buying a house, so that you can face this very important moment with peace of mind.
Taxes
Taxes on the first home are very different for those buying from a private individual and those buying from a company. In fact, the percentage rate and the taxable base change.
Whether buying from a business or a private individual, registration, mortgage and cadastral taxes are paid by the notary when the deed is registered.
If the seller is a private individual
The taxes to be paid by the purchaser are the following:
proportional registration tax of 9%
fixed mortgage tax of 50 euros
fixed cadastral tax of 50 euros
The taxable base is the cadastral value of the property.
If the seller is a VAT-exempt company
The taxes to be paid by the purchaser are the following:
proportional registration tax of 9%
fixed mortgage tax of 50 euros
fixed cadastral tax of 50 euros
The taxable base is the cadastral value of the property.
If the seller is a company with sales subject to VAT
The taxes to be paid by the purchaser are the following:
10% or 22% VAT (depending on the classification of the property in question)
fixed registration tax of 200 euros
fixed mortgage tax of 200 euros
fixed cadastral tax of 200 euros
The taxable base is the price of the property.
First home benefits
If ‘first home’ requirements are met, the taxes to be paid are reduced.
If the seller is a private individual or a company selling exempt from VAT
proportional registration tax at the rate of 2% (instead of 9%)
fixed mortgage tax of 50 euros
fixed cadastral tax of 50 euros
Purchasing from a company with sales subject to VAT
VAT reduced to 4%
fixed registration tax of 200 euros
fixed mortgage tax of 200 euros
fixed cadastral tax of 200 euros