In buying and selling a luxury property there are some details to take into consideration, especially at the tax level there are important implications. But, first of all, it is necessary to understand the characteristics of luxury properties and be sure that what we are buying or selling really falls into this category.
Over the years, the criteria to understand if a property is of value have changed from a fiscal point of view. So let’s try to clarify the subject (also because buying a luxury property or not can make the difference from an economic point of view).
Defining “prestige”, “prestige” or “luxury” could be a fairly subjective decision.
For me, luxury may be different from what you consider luxury.
For this reason, over time, the legislator has identified the characteristics that identify luxury properties, with the aim of imposing a greater fiscal burden and on the owners of these houses.
The villa di Corliano in Tuscany
The Decree of the Ministry of Public Works of 2 August 1969 had identified as Luxury properties those that possessed certain and precise characteristics.
According to this decree, luxury properties are those that possess at least one of the following characteristics:
1) homes built on areas intended by urban planning tools, adopted or approved, as “villas”, “private parks” or buildings qualified by the aforementioned instruments as “luxury”;
2) homes built on areas for which the urban planning tools adopted or approved provider for a destination with the building type of single-family houses and with the specific requirement of lots of not less than 3000 sqm. agricultural areas are excluded, even if residential constructions are permitted in them;
3) houses that are part of buildings that have a cubic capacity greater than 2000 cubic meters and are built on lots in which the built volume is less than 25 cubic meters. v.p.p. (empty for full) for every 100 square meters. of surface subservient to buildings;
4) single-family homes with a swimming pool of at least 80 square meters. surface area or tennis courts with a drained substrate with a surface area of no less than 650 m2 .;
5) houses made up of one or more rooms constituting a single main house with a total useful area greater than square meters. 200 (excluding balconies, terraces, cellars, attics, stairs and parking spaces) and having an uncovered area of over six times the covered area as pertinence;
6) the individual real estate units with a total useful area greater than square meters. 240 (excluding balconies, terraces, cellars, attics, stairs and parking spaces);
7) homes that are part of buildings or constituent buildings on areas in any case intended for residential construction, when the cost of the land covered and pertinent exceeds the cost of construction by one and a half times;
8) houses and single real estate units that have more than 4 characteristics among the following :
- a) surface area of the apartment: total useful area greater than 160 square meters, excluding terraces and balconies, cellars, attics, stairs and parking spaces;
- b) level covered terraces and open spaces and balconies: when their total useful area exceeds 65 square meters at the service of a single urban real estate unit;
- c) lifts: when there is more than one lift for each staircase, each additional lift counts for a characteristic if the staircase serves less than 7 raised floors;
- d) service staircase: when not required by laws, regulations or imposed by the need to prevent accidents or fires;
- f) main staircase:
- a) with walls covered with precious materials for a height above 170 cm on average;
- b) with walls covered with precious materials;
- g) net free height of the top: higher than 3.30 m unless building regulations provide for higher minimum heights;
- h) entrance doors to the apartments from internal stairs:
- a) in precious wood or solid and veneered wood; < / li>
- b) carved, carved or inlaid wood;
- c) with precious decorations overlaid or embossed;
- i) internal fixtures: as in lett. a), b), c) of characteristic h) even if hollow-core if their total surface exceeds 50 per cent of the total surface;
- l) floors: executed for a total surface exceeding 50 per cent of the total useful area of the apartment:
- a) in high-quality material;
- b) with high-quality materials;
- m) walls: when for over 30 percent of their total surface is:
- a) made with precious materials and works;
- b) covered with fabrics or other precious materials;
- n) ceilings: if decorated with coffered or decorated with stuccoes pulled in place or hand painted, excluding small shapes of detachment between walls and ceilings;
- o) swimming pool: indoor or outdoor, in masonry, when it is at the service of a building or a complex of buildings comprising less than 15 real estate units;
- p) tennis court: when it is at the service of a building or complex of buildings comp yielding less than 15 real estate units.
Which are luxury-properties: characteristics and Definition based on cadastral-categories
Today, however, following a change made in 2014, properties that belong to the following cadastral classes are defined as luxury:
- A / 1: Stately homes
- A / 8: Villas
- A / 9: Castles and palaces of outstanding artistic and historical value
Therefore, the previously mentioned characteristics are no longer taken into consideration, at least for the first home facilities and attachment by the Revenue Agency, but simply the cadastral categories.
A peculiarity: the cadastral class A / 7 (villas) , despite sometimes having the characteristics of a luxury property, is not considered fiscally as such because the houses are not built in areas of value. This allows the owners of this type of housing to take advantage of the first home and main residence benefits (IMU exemption).
Buying a luxury-home
Buying a luxury property means accepting
are to pay some extra tax. On balance, it can be worth it to have a unique house with special characteristics.
As regards the costs related to the purchase are (in proportion, obviously) similar to the purchase of a “normal” house, except for the fiscal part.
Tax-to-buy-a-prestigious-property from a natural person
A prestigious home cannot be purchased using the first home benefits, therefore the registration tax will be equal to 9% of the cadastral value revalued (instead of 2%) and mortgage taxes and cadastral are equal to 200 € each.
Taxes for the-purchase of a luxury-property subject to VAT
In the case of purchase subject to VAT, or buying a house from a builder, the value-added tax is equal to 22% of the price.