Property purchase prices, tax and revaluation by the tax office

View previous topic View next topic Go down

Property purchase prices, tax and revaluation by the tax office

Post by Admin on Fri Jun 13, 2014 8:52 am

I have just had one of the dreaded green envelopes through the door from the Agenzia delle Entrate (AdE) today. If you've never had one then thank your lucky stars!
I always knew that the AdE can review the price you pay for a property and you should never pay less than the cadastral value otherwise they will automatically review the price on the atto. BUT it seems they are now using a new method to calculate the price you should have paid. They have always had the ability to use the 'market value' but I have never seen it used before.

Our atto has been investigated (despite us having paid more than the cadastral value) and they have revalued the purchase price in accordance with the values on their own database here for buildings and here for land. This means our purchase price is now almost 3 times the price we declared!!! This would usually mean they want the difference in purchase tax you paid and tax on the new purchase price plus interest and fines (usually an extra 30%). Luckily for us we bought with a now defunct special scheme for farmers where we paid no purchase tax but the new valuation system is a bit alarming. It seems if you buy property or land you need to make sure the price is at least the cadastral value and at least the 'market value' using the AdE sites above.
avatar
Admin
Admin

Location : Italy
Posts : 691
Join date : 2013-05-16

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by Gala Placidia on Fri Jun 13, 2014 10:53 am

This may be of help. I tend to collect all the documents related to any property we buy and in the case of this particular one, I asked the Notary to get for us a copy of the previous "atto" and there I found that a lower than cadastral value had been agreed by both the seller and the (previous) buyer, because part of the property had collapsed and required major work. So it is possible to specify certain "irregularities" on the "atto", which could then be used to justify those with the A.E., should they decide to investigate. I think that this should help those buying properties which need substantial renovations.
avatar
Gala Placidia
Moderator

Posts : 1816
Join date : 2013-05-20

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by Admin on Fri Jun 13, 2014 11:02 am

I agree in theory but sadly I also had this experience with my previous property and despite part of the property being without a roof and the rest clearly uninhabitable the AdE refused our appeal, fined us and I am still paying that fine 5 years later. Things have changed a lot in the last 10 years. More money is required by the state and they are very inventive when it comes to finding ways to gather it.
avatar
Admin
Admin

Location : Italy
Posts : 691
Join date : 2013-05-16

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by Vicino on Fri Jun 13, 2014 12:30 pm

Are they trying to stop people investing in Italy ?!!  Outrageous..............I thought that the notary was there to ensure that everything was 'correct and proper' !?   Evil or Very Mad 

V
avatar
Vicino
Elder

Posts : 513
Join date : 2013-05-25

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by Flip on Fri Jun 13, 2014 1:51 pm

They should wear a bloody mask and stripped jumpers those lot at the AdE.. pirat
avatar
Flip
Elder

Location : nr. Bagni Di Lucca. LU
Posts : 794
Join date : 2013-05-25

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by Gala Placidia on Fri Jun 13, 2014 2:19 pm

And they seem to pick their victims amongst normal, ordinary citizens. I am sure that the multimillionaires have it all sorted out. Mondo cane!  Rolling Eyes
avatar
Gala Placidia
Moderator

Posts : 1816
Join date : 2013-05-20

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by Admin on Fri Jun 13, 2014 3:16 pm

So true Gala! It sort of made sense in the days when people massively underdeclared but now when the property market is in the doldrums it seems a bit bonkers. There is no way our farm would sell at the crazy price they have come up with!
avatar
Admin
Admin

Location : Italy
Posts : 691
Join date : 2013-05-16

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by modicasa on Fri Jun 13, 2014 4:16 pm

This is becoming the norm.  I had a client who needed money desperately and sold a commercial premises in Modena for 30000 less than its market value.  The AdE got in touch and demanded he pay 8000 in tax on the missing money, assuming he had underdeclared.  His lawyers told him to pay as the legal fees in doing a ricorso would be higher.  Whats worse, the AdE called him in, put him in an interrogation room and treated him like a murder suspect without telling him why - until the end of the interview when they let him know their reasons, by which time he was a trembling wreck.  Utterly disgraceful - but there is nothing you can do.  in ITaly you are always assumed to be breaking the law until you can prove your innocence.

modicasa
Elder

Location : Sicily
Posts : 525
Join date : 2013-05-20

http://www.modicasa.com

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by Casa Monal on Sat Jun 14, 2014 6:06 pm

The mind boggles :!:the more I read the more I’m thinking it’s time to sell up...
avatar
Casa Monal
Elder

Posts : 183
Join date : 2013-06-02

Back to top Go down

Re: Property purchase prices, tax and revaluation by the tax office

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum