Lago Maggiore: what are the benefits related to the purchase of the first house?

If you are thinking of buying a house on Lago Maggiore, you should know that there are some benefits you can take advantage of. 

On Lago Maggiore, the benefits on the purchase of the first home are owed to the citizens possessing some specific requirements, as it also happens in the rest of Italy. The aim is to reduce the expenses that weigh on those who decide to buy a property and to move in. 

BENEFITS ON THE PURCHASE OF THE FIRST HOME

Those who are looking for houses for sale Lago Maggiore can benefit from some tax cuts.
First thing to do is check whether you are purchasing the property from a private citizen or from an enterprise. In the first instance, the following taxes must be paid:

• proportional registration tax of 2% instead of 9%
• fixed mortgage tax amounting to 50 euros
• fixed cadastral tax amounting to 50 euros

In the second instance, i.e. when you buy a house from a VAT-liable business, the VAT amount must be paid up to 4% instead of 10% and you also have to pay 600 euros for: the fixed registration tax (€ 200), fixed mortgage tax (€ 200) and fixed cadastral tax (€ 200).

HOW ARE THE TAXES CALCULATED?

Let’s imagine you are buying a property: it can happen that you don’t know how to calculate the tax rates, especially in case you are purchasing it as a “first home” and can therefore take advantage of the related benefits.
As for VAT-liable businesses, the tax rate is calculated on the sale price of the property. But, if the deal is made between two individuals or if the seller is not a VAT-liable institution (like organisations and foundations) and the buyer is an individual, then the taxable income can be calculated with the so-called price-value system. This one, based on the cadastral value of the property and not on the sales price, can be favorable for the buyer. 

WHO CAN BENEFIT FROM THESE TAX BREAKS?

Those who live in the city where the house is located or those who move their residence there within the first 18 months following the notary deed, can benefit from these tax breaks.
But only if they don’t own another property, because in that case, they would have already used all the benefits for the purchase of a “first house”. This also applies to their spouses.
However, in this case an alternative exists: even those who already own a house, can buy a new one, enjoying the tax advantages of buying a first home as long as the previously owned house is sold within a year of the new purchase.

TAX BENEFITS AND APPURTENANCES

If the house you are buying enjoys appurtenances such as garages or cellars, they can also take advantage of the above mentioned benefits. 

BENEFITS BY CATEGORY OF PROPERTY                                                                                                                                                             

Only some categories of properties can enjoy first home advantages. The parameter to consider is the cadastral category. This type of benefits includes residential properties (A / 2), economical properties (A / 3), public housings (A / 4) and ultra-public housings (A / 5), rural houses (A / 6) and those typical of a specific area (A / 11).