Italy: what you should know when buying a property at auction

Italy: what you should know when buying a property at auction

Operations on the home buying at auction in Italy have a number of specific aspects. Portal iocomprocasa.com counted all the costs for such a purchase, describing the expenditure and taxation. In particular, the purchase of real estate at auction implies the need to pay for mortgage cancellation, inventory and documentation (write the text of a legal act of transfer of property), transfer of property to another person. All of these actions are carried out either in the office or a notary public, but it's all paid for by the buyer.

As regards the tax burden on property purchased at an auction, here we are talking about the same expenditure as in the ordinary real estate purchase. The new owner can take advantage of the benefits when purchasing their first property, if purchased housing meets the necessary requirements. The only aspect that must be considered: the tax base for the calculation of the three major taxes (registration, mortgage, inventory) is a value determined by the bankers, not the value registered in the inventory. Thus, on the basis of the difference calculation of taxes you will have a great advantage if the market price at the auction is lower than the estimate provided by the revaluation of the cadastral value, and vice versa, there may be some loss. The latter option is rarely happens when the property is sold after a few auctions with decreasing market price.

The taxation of commercial real estate should be considered value-added tax, and taxes are not mentioned above.