A small but significant incentive to the real estate market could come from the decline of certain tax obligations starting from 2014. If today the registration tax for the purchase of a first home by an individual is equal to 3%, while the mortgage tax and cadastral consist of a fixed amount of 168 € each, beginning the 1st of January 2014 which is subject to last minute changes, the registration tax will fall to 2%, with a minimum of 1000 Euros, while the mortgage and cadastral taxes will be paid a fixed amount for 50 euro each, with a saving of € 118 compared to today. Just to be clear, buying an apartment worth 300,000 Euros, today with facilities for first home, you must pay a registration fee of 9000 Euros and 336 Euros, adding the mortgage tax and cadastral, for a total of 9336 euro.
With the new rates, however, the tax treatment will be more benevolent. 6000 Euros of registration tax and € 100 in total for mortgage and land, for a total of 6100 euro. That means a saving of over € 3200.
Also starting January 1 2014, to enjoy the tax benefits described above, we’ll verify that the property is not considered “luxurious”, ie not stacked in categories A1 which are kind of stately homes, A8 villas, A9 castles and palaces of artistic or historical value.