Go Back  British Expats > Living & Moving Abroad > Europe > Italy
Reload this Page >

Selling first prop within 5yrs, tax calc?

Selling first prop within 5yrs, tax calc?

Old Sep 26th 2018, 1:44 pm
  #1  
Just Joined
Thread Starter
 
Joined: Sep 2018
Posts: 10
mike101 is an unknown quantity at this point
Default Selling first prop within 5yrs, tax calc?

Hi
Bought first prop a little over three years ago and benefited from the reduced tax on a first property purchase (something like 2% or 3% IIRC, instead of 9%)

If I sell this prop withing 5 yrs, I have to repay the tax differential I benefited from, i.e. 7% approx.
I would like to calculate this 7% figure. I believe one uses the cadastral value to do the calculation. Could anyone offer the formula for doing this?

cheers, M
mike101 is offline  
Old Sep 27th 2018, 6:32 am
  #2  
BE Forum Addict
 
Joined: Dec 2009
Posts: 2,103
modicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond repute
Default Re: Selling first prop within 5yrs, tax calc?

Two things here. You bought as first property, so had to take residence within 18 months. Did you do that? If not the Tax Office will already be on your trail for the missing %, If you declare to the taxman that you didnt do that within the 18 month period, you wont pay the sanctions.
Your capital gain on selling within 5 years (depending on whether you took residence) is on the profit you make on the sale - ie buy for 100, sell for 200 pay 20% capital gain on 100 ((minus costs)
modicasa is offline  
Old Sep 27th 2018, 8:47 am
  #3  
Just Joined
Thread Starter
 
Joined: Sep 2018
Posts: 10
mike101 is an unknown quantity at this point
Default Re: Selling first prop within 5yrs, tax calc?

Originally Posted by modicasa View Post
Two things here. You bought as first property, so had to take residence within 18 months. Did you do that? If not the Tax Office will already be on your trail for the missing %, If you declare to the taxman that you didnt do that within the 18 month period, you wont pay the sanctions.
Your capital gain on selling within 5 years (depending on whether you took residence) is on the profit you make on the sale - ie buy for 100, sell for 200 pay 20% capital gain on 100 ((minus costs)
Thanks.
I was resident long before i bought prop.
I am actually asking about the repayment (and calculation ) of the 7% tax incentive for first purchase, not CGT. I think I appreciate that tax on any capital gain of selling price I make is a different thing.
Thanks
mike101 is offline  
Old Sep 27th 2018, 9:57 am
  #4  
BE Forum Addict
 
Joined: Dec 2009
Posts: 2,103
modicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond repute
Default Re: Selling first prop within 5yrs, tax calc?

If I sell this prop withing 5 yrs, I have to repay the tax differential I benefited from,

If you are planning to not buy another prima casa then you can be asked to pay the difference, or lose the prima casa agelovazione. You can also be exempt if you buy another prima casa within the EU. Without your catastal values I cant tell you what the difference is.

Last edited by modicasa; Sep 27th 2018 at 10:20 am.
modicasa is offline  
Old Sep 27th 2018, 11:11 am
  #5  
Just Joined
Thread Starter
 
Joined: Sep 2018
Posts: 10
mike101 is an unknown quantity at this point
Default Re: Selling first prop within 5yrs, tax calc?

Originally Posted by modicasa View Post
If I sell this prop withing 5 yrs, I have to repay the tax differential I benefited from,

If you are planning to not buy another prima casa then you can be asked to pay the difference, or lose the prima casa agelovazione. You can also be exempt if you buy another prima casa within the EU. Without your catastal values I cant tell you what the difference is.
OK, thanks.
Is it possible to supply the formula for the calculation of the repayment amount?
Also, if one sold within the 5 yr window, would it be possible to avoid paying back this amount , possibly by not using an agent for the sale? Or would one typically receive a tax bill after the sale for this amount?
thanks
mike101 is offline  
Old Sep 27th 2018, 4:11 pm
  #6  
BE Forum Addict
 
Joined: Dec 2009
Posts: 2,103
modicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond repute
Default Re: Selling first prop within 5yrs, tax calc?

It has nothing to do with an agent - its between you and the tax office - in the person of the notary. Usually you would pay it at the moment of the atto or wait for the AdE to contact you. Without knowing what your property is and what it consists of I cant tell you. PM me your visura or property details - Class, R.C. and if there are any dependances, pertinences, land etc.
modicasa is offline  
Old Sep 28th 2018, 9:53 am
  #7  
Just Joined
Thread Starter
 
Joined: Sep 2018
Posts: 10
mike101 is an unknown quantity at this point
Default Re: Selling first prop within 5yrs, tax calc?

Originally Posted by modicasa View Post
It has nothing to do with an agent - its between you and the tax office - in the person of the notary. Usually you would pay it at the moment of the atto or wait for the AdE to contact you. Without knowing what your property is and what it consists of I cant tell you. PM me your visura or property details - Class, R.C. and if there are any dependances, pertinences, land etc.
Thanks.
Yes, I just wondered if the agent had any duty in respect of the taxes. The notary makes more sense.
I was kind of wondering if I as the seller didn't use an agent for the sale whether the tax repayment could be avoided, as the sale would be processed by the notary paid for by the buyer . Especially if one were to leave the country after the sale...? Thanks for the offer will get back...
mike101 is offline  
Old Sep 28th 2018, 10:04 am
  #8  
BE Forum Addict
 
Joined: Dec 2009
Posts: 2,103
modicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond reputemodicasa has a reputation beyond repute
Default Re: Selling first prop within 5yrs, tax calc?

No, the agent has nothing to do with your taxes. What usually happens is that the notary gives you the options to pay what is owed, and you choose. If you were tobuy another prima casa within 12 months of the sale then you would have no tax to pay - so if you dont tell the notary you are leaving the country, but nod sagely when he tells you that you need to buy another house, then it becomes an issue between you and the Agenzia dell'entrate - once the year has elapsed and they cotton onto the fact that you havent bought another prima casa. If you don't, and at some point in the future decide to buy, you wont be able to take advantage of the incentives and will lose your prima casa agevolazione for ever.
modicasa is offline  
Old Sep 28th 2018, 10:16 am
  #9  
Just Joined
Thread Starter
 
Joined: Sep 2018
Posts: 10
mike101 is an unknown quantity at this point
Thumbs up Re: Selling first prop within 5yrs, tax calc?

Originally Posted by modicasa View Post
No, the agent has nothing to do with your taxes. What usually happens is that the notary gives you the options to pay what is owed, and you choose. If you were tobuy another prima casa within 12 months of the sale then you would have no tax to pay - so if you dont tell the notary you are leaving the country, but nod sagely when he tells you that you need to buy another house, then it becomes an issue between you and the Agenzia dell'entrate - once the year has elapsed and they cotton onto the fact that you havent bought another prima casa. If you don't, and at some point in the future decide to buy, you wont be able to take advantage of the incentives and will lose your prima casa agevolazione for ever.
thanks very much for the guidance/advice. :-)
mike101 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.