{"id":614,"date":"2023-04-08T14:39:56","date_gmt":"2023-04-08T14:39:56","guid":{"rendered":"http:\/\/spadaforarealty.com\/?p=614"},"modified":"2023-10-26T15:30:51","modified_gmt":"2023-10-26T15:30:51","slug":"evitare-rischi-e-multe-fiscali-per-la-vostra-nuova-proprieta-in-italia","status":"publish","type":"post","link":"https:\/\/spadaforarealty.com\/it\/avoid-risks-and-tax-fines-on-your-new-property-in-italy\/","title":{"rendered":"Evitare rischi e multe fiscali per la vostra nuova propriet\u00e0 in Italia"},"content":{"rendered":"\t\t
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Avoid Risks and Tax Fines on Your New Property in Italy<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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The\u00a0buying process for a home in Italy<\/a>\u00a0is similar to that of other countries. You put your finances in order, make a plan for the down-payment, get\u00a0pre-approved for a mortgage<\/a>, and go real estate shopping! Once you’ve found the ideal home, the offer you make to purchase the property is called “Proposta” in Italian, and after some likely back-and-forth with the sellers, you’ll be ready to formalize an offer agreement.<\/p>

Did you know that you are legally required to register your accepted offer on the house, or better yet the Preliminary Agreement if you have one, with the Italian fiscal authorities within 20 days of signing or else risk paying a fine for tax evasion? Unfortunately, many real estate agents in Italy are negligent in this area; they think it\u2019s a mere tax compliance that the\u00a0notary<\/a>\u00a0will sort out, but there is more to it.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Why you should Register your Accepted Offer<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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If you fail to register the accepted offer several problems can arise. In the event the seller goes bankrupt before closing, you can enforce the contract in court and prevail over other creditors seizing the property\u00a0only if<\/em>\u00a0you’ve registered it. A situation such as this is exceptionally risky when you are buying a property that\u2019s a new construction from a builder, wherein it hasn’t been built yet or is still under construction. Not only will you lose the deal, but also your holding deposit and the broker\u2019s commission you already paid! By Italian law, agency commissions are due as soon as the offer is accepted by the buyer.\u00a0<\/p>

Imagine you are closing on a 1 million Euro property; you pay a holding deposit of 10% and an agency fee of 3% so 130,000 Euros total. If you do not register the accepted offer and the seller goes bankrupt, you risk forfeiting this entire amount!<\/p>

Now, can you buy the house anyways if your agent did not register the contract? Provided the seller doesn\u2019t go bankrupt or he doesn\u2019t sell the house to someone else in the meantime\u2013 see our blog article on the importance of\u00a0transcribing a Preliminary Agreement\u2013 the purchase of your home is not affected. The notary, however, will charge you a fine at closing, and let\u2019s be honest, who likes to pay fines?\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How do You Register an Accepted Offer or a Preliminary Agreement in Italy?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The buyer and the real estate agent are both responsible for registering the accepted offer or the Preliminary Agreement, known as \u201cPreliminare” or “Compromesso\u201d in Italian, and paying the registration tax. This task can also be performed by the buyer\u2019s accountant, but it\u2019s important someone takes care of it.\u00a0<\/p>

  1. Make an appointment online with the Italian Revenue Agency: \u201cAgenzia delle Entrate”<\/li>
  2. Fill out an F24 form for the payment of the \u201cimposta di registro\u201d tax and use the tax code 1550 as \u201ccodice tributo\u201d<\/li>
  3. Pay the tax online, at your local bank, or at the post office<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    How Much are Italy's Registration Taxes?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    The amount of registration tax to pay when you buy a home in Italy is \u20ac200 fixed, plus 0.50% of the holding deposit that you paid to the seller. Bear in mind that the offer agreement must specify that the deposit be treated as \u201cCaparra Confirmatoria,\u201d or else it will be treated as an advance payment of the purchase price, and you will have to pay a hefty 3% \u201cimposta di registro\u201d tax when you register it instead of the aforementioned 0.50%.\u00a0<\/p>

    We recommend paying the registration tax at the post office, because they give you a payment receipt immediately. If you pay online, you will have to wait for the funds to clear which may take 2 to 4 working days. When the funds clear, you will be able to download the receipt of payment, or \u201cquietanza\u201d as it’s known in Italian. Without this \u201cquietanza,\u201d there’s no point to making an appointment with the Italian Revenue Agency as they won’t accept your documents.<\/p>

    Before you go to the appointment at the “Agenzia delle Entrate,” you will also need to purchase a so-called \u201cmarca da bollo\u201d at your local “tabaccheria” or convenience store. It\u2019s a tax stamp or fiscal stamp, which is an adhesive label used to designate collected taxes or fees on documents. The convenience stores only accept cash when you purchase one of these stickers. You will have to buy a \u20ac16.00 sticker every 100 lines, so if the offer agreement or “Proposta” is 150 lines long, for example, you will have to buy two stickers. If the proposta comes with an addendum page, the addendum page will require its own separate sticker.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Documents Checklist for the Italian Revenue Agency<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    1. F24 form<\/li>
    2. “Quietanza” receipt of payment<\/li>
    3. Form 69 (\u201cRichiesta di registrazione e adempimenti successivi\u201d) filled out and duly signed three times by the buyer\u00a0<\/li>
    4. Two or more “marche da bollo” stickers depending on the length of the document you intend to register<\/li>
    5. Two original fully executed versions of the “proposta” (or “preliminare”)<\/li>
    6. ID of the agent or person requesting the registration<\/li><\/ol>

      It’s important to note that the Italian fiscal authorities will not register the contract unless you have the originals. Printed copies won\u2019t do, so if the signing parties live abroad they must mail one another the original signed documents.\u00a0<\/p>

      If you are short on time and do not want to miss the 20-day deadline and incur fines, you may send a so-called \u201cPEC\u201d to the “Agenzia delle Entrate”; it\u2019s a type of certified e-mail meant to provide the legal equivalent of the traditional registered mail. You will have to attach copies of all the documents listed above, along with a \u201cDichiarazione Sostitutiva di Atto di Notoriet\u00e0\u201d form, and then bring the originals in person once you receive them.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      Fines Associated with Failing to Register the contract on-time<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      As specified at the beginning of this article, you have 20 days to register the contract of your accepted offer. If you are late, you will have to fill out a separate F24 form using the tax code \u00a01551, and pay the following fine:\u00a0<\/p>