Legal Information:
1-Contract of Promise of Sale (not compulsory)
- Witnessing Deed of Signature Cost: 11 - Witnessing of each Signature - Stamp Duty of Original Contract - 5
2-Registration of Purchase (in the appropriate Register of Real Properties)
I Caution in the Register of Real Properties (used mostly when a bank loan is needed for purchase): a) Mortgage Registry Cost: 135/Mortgage; b) Accession Register Cost: 125 c) Converting into Final Registry Cost: 48; II Final Registries (Purchase) (AB INITIO) (Should the Registry never have been entered as a Caution in the Land Register) Cost: 150 (in this case, the additional costs mentioned on paragraph c) will not be charged); III Building Account titular benefits from a 50% reduction of the legal fees of the registration of purchase, when these affect on the balance of the purchase of owner occupied dwelling.
3-The local transfer for consideration of buildings tax IMT, (e.g. SISA) must be liquidated in the proper apportionment of the department of Finance (unless documents attesting otherwise are presented).
The new IMT taxes shall not present any differences concerning the SISA tax (revised in May 2003), given in example above. Striking off of some tax exemptions (for instance deducting the value of the IMT, e.g. SISA) in a first time purchase of urban real estate, or when the SISA tax is paid by the builder. The IMT tax, e.g. SISA, is still liquidated according to the value of the sale declared on the notary deed of property sale. What is however innovating, is the fact that according to the new criteria, after a period of eight years tax authorities will be able to mark-up the property and thus determine the property value liable for social contributions. There are six evaluation criteria set forth in the law, specifically for urban buildings: 1) Average cost of construction per square metre 2) Gross area of construction 3) Assignment coefficient 4) location coefficient 5) Quality and comfort coefficient 6) Antiquity coefficient - IMT tax (e.g. SISA) on provisional values, in Euro Marginal rate to be used/ Part to be deducted (in Euro): up to 81.600- exempt from IMT tax (e.g.SISA). Over 81.600 and up to 112.200 - Marginal rate 2% - Part to be deducted 1.600. Over 112.200 and up to 153.000 Marginal rate 5 - Part to be deducted 4.900. Over 153.000 and up to 255.000 Marginal rate 7% - Part to be deducted 7.900. Over 255.000 and up to 510.000 Marginal rate 8% - Part to be deducted 10.400. Over 510.000 Single rate: purchase of land building 6% - purchase of other urban building 5% - purchase for consideration 6.5%. Exempt from IMT taxes (e.g.SISA): Purchase of urban building, or part thereof, forming self-contained premises, designed exclusively for residential use, as long as the value on which the IMT tax (e.g.SISA) is based does not exceed 81.600. Whenever the buyer is resident or has head office in a country, territory or region that is subject to a clearly more favourable taxation system and that is on the list approved by decree order of the Minister of Finance, no exemption or deduction will apply, the tax will be 15%.
4-Notary deeds of sale (in any Notarys office disregarding the location of the property within the National territory)
I Notary deeds with bank loan fixed costs 297 + Stamp duty 0,8% on sales value and + 0,6% Stamp duty if there is any mortgage value. II Building account titular benefits from a 50% reduction of the legal fees of the registration of purchase, when these affect on the balance of the purchase of owner occupied dwelling.
5- Municipal Tax on Property IMI (e.g. Municipal Tax)
IMI (e.g. Municipal Tax) depends on several factors, among them are: a) the value relating to property/according to the legal description); b) the location and commune the property belongs to; c) only buildings meant for permanent dwelling or as rental buildings may be exempt from payment of IMI (e.g. Municipal Tax), according to the value relating to the property in question; d) In order to apply for exemption of IMI (e.g. Municipal Tax) of a permanent dwelling or tenement, the request must be carried out at the local tax office, regarding the following frame: - up until 60 days after the signing of the deed; - both the notary deed and the legal description of the property should be shown together; e) apart from factors a) b)and c) and in case there is no exemption, the annual postage due is currently calculated by means of a fee on based on the value relating to property: - Land property 0,8%, whatever the location of the property inside the National territory. Urban building (including parcels of landed property for construction purposes) the fee varies between 0,4% and 0,8%, depending on the location the property is on. Whenever the buyer is resident or has head office in a country, territory or region that is subject to a clearly more favourable taxation system and that is on the list approved by decree order of the Minister of Finance, the tax will be 5%, whatever the location of the property inside the National territory. Exempt from payment of IMI (e.g. Municipal Tax) are: □ buildings or part thereof, built, enlarged, improved or purchased against payment, meant for owner occupied dwelling or as a rental building, as long as the building is serving its established purpose in a period of six months after works have finished, or six months after date of purchase; □ Equally exempt are buildings, or part thereof, rebuilt, enlarged, improved, or purchased against payment, when it is a first time transaction in the part thereof meant for renting, the date on the first leasehold will mark the beginning of the period of exemption; □ The request for exemption should be presented to a local comptroller, within a period of 60 days; □ The period of exemption should be determined according to this array: TAXABLE AMOUNT/ (year 2004) EXEMPTION PERIOD/ Number of years: Up to 150.000 6 years. Over 150.00 and up to 225.000 3 years. Over 225.000 no exemption. Low value relating to property buildings: Exempt from payment of IMI (e.g. Municipal Tax). Urban and land property belonging to taxable persons whose family households gross income for income tax purposes does not exceed two minimum wages and whose total value relating to property does not exceed 6.843. There is a ten-year exemption whatever the value relating to property concerning savings arrangements designed for emigrants.