Buying a home

A) Purchase from a builder/renovator

Purchase from a firm of builders or renovators, except in particular circumstances, attracts VAT which is payable directly to the seller.

The VAT rate to be applied on the sale price will be:

• 10% unless it is a first home purchase
• 4% if “first home” assistance applies.

The same tax treatment is applied to the allocation of houses to members of housing cooperatives.In the case of purchases subject to VAT, the following taxes will be also paid to the notary who will then pay the Taxation Office:

• Registration tax: Euro 200
• Mortgage tax: Euro 200
• Land Registry tax: Euro 200

B) Purchase from a private party

The registration tax, mortgage and land registry taxes are paid by the buyer to the notary who, in turn, will forward them to the government Taxation Office at the time of registration.

1) In the absence of incentives

• Registration tax: 9%
• Mortgage tax: Euro 50
• Land Registry tax: Euro 50

The rates apply as a rule on the sale price declared in the deeds; in the case of transfer of residential property to physical persons the purchaser may apply for payment of the registration tax on the “cadastral value” (price-value) of the property (which is the value obtained by multiplying the cadastral income by the legal coefficient of 126), regardless of the actual amount of the sale price, even if it is higher than this value.

The minimum tax is still €1,000.

2) Support for the purchase of a first home

• Registration tax: 2%
• Mortgage taxEuro: 50
• Land Registry taxEuro: 50

The rates apply as a rule on the sale price declared in the deeds; in case of transfer of residential property to physical persons the purchaser may apply for payment of the registration tax on the “cadastral value” (price-value) of the property (which is the value obtained by multiplying the cadastral income by the legal coefficient of 115.5), regardless of the actual amount of the sale price, even if it is higher than this value.

The minimum tax is still €1,000.