Francesco Papurello

TAXATION AND TAX CONCESSIONS FOR THE PURCHASE OF RESIDENTIAL REAL ESTATE.

The taxation imposed at the purchase of the habitation is divided into two groups: the purchase of the first home and the purchase without tax concessions "first home".

The preconditions for the tax concessions

In order to benefit by the tax concessions "first home", it is necessary to satisfy the following conditions:

• The real estate must be located:
  1. In the territory of the village where the purchaser is domiciled;
  2. In the territory of the village where the purchaser will be domiciled in 18 months from the purchase (the declaration of this will is expressed, on pain of decadence, in the purchase act);
  3. In the territory of the village where the purchaser carries on a business;
  4. n the territory of the village where the person for whom the purchaser works carries on his business or where this person placed the seat of his business (these conditions are valid if the purchaser have been transferred abroad for employment reasons).
• If the purchaser is an Italian citizen emigrated abroad (registered to the Aire), the purchased real estate must be the "first home" owned by the purchaser on the Italian territory.
• In the purchase act the purchaser must declare that he is not owner by himself or in common with the consort, of the right of ownership, of usufruct, of use, right of occupancy or bare property of another house or habitation purchased (even by the consort) with the tax concessions of the first home.
• In the purchase act the purchaser must declare to be not holder, even by shares, on the whole national territory, of the right of ownership, of usufruct, of use, right of occupancy or bare property of another house or habitation purchased (even by the consort) with the tax concessions of the first home.

The decay of the tax concessions

The "first home" tax concession will be revoked if:

• The declarations demanded by the law and expressed by purchaser in the moment of the notarial deed come out to be mendacious.
• The habitation purchased with the tax concessions is transferred (either by onerous act or by free act) before the term of 5 years from the date of the purchase.

In this case the Inland Revenue claws back the register, mortgage and cadastral taxation by the ordinary measure. It also applies a sanction (30% of the overall taxations), in addition to the interests.
There is no decay if the ratepayer purchases another real estate to use as main habitation, within a year from the alienation of the real estate purchased with the "first home" tax concessions.

The tax credit

The purchase of a new habitation within a year from the selling of the previous habitation, causes the tax credit. The necessary conditions in order to benefit by this condition are:

• The new habitation must be purchased within a year from the sale of the previous habitation.
• The previous habitation must have been purchased with the "first home" tax concessions.

The tax credit is the same as the register tax paid on the purchased habitation. This credit cannot be superior to the taxation due at the moment of the purchase of a new habitation.