The rules governing this matter are extremely complex and may be schematically simplified by looking at a subjective profile and an objective profile.
As regards the former, there are two main types of tax linked to real estate conveyances: stamp duty (imposta di registro) (and the related mortgage and cadastral taxes) and VAT.
Whether one tax or the other is applied depends mainly but not exclusively on the nature of the vendor.
Stamp duty is applicable in all cases where the vendor is a private non-business party as well as in a few particular cases of sales by companies, in consideration of the kind of asset sold and other specific (e.g. temporal) circumstances. VAT is usually applicable, instead, in particular circumstances, to sales by companies whoever the purchaser may be. Following recent changes to the rules, the range of application of VAT is now minimal: basically, only where a building or renovation company sells a residential property (and its accessories) within four years from completion of the works is the conveyance subject to VAT, which the purchaser pays directly to the company; on the other hand, if the sale takes place after four years have elapsed from completion or it is a residential sale by a company that is not in the business of building or renovation, the purchaser pays stamp duty (imposta di registro) to the notary (where it is possible to apply the so-called value-price mechanism: on this point, see details in the section on "taxable price and value").
These taxes are mutually exclusive. Within each type of tax, there is a range of rates (i.e. the percentage of tax to be calculated on the declared value) depending, here too, on the nature of the asset and (this time) of the purchaser (and any special reductions the latter may be able to apply for).
It is possible to summarize as follows, schematically and by example:
- sale by a building/renovation company within 4 years: VAT (4%-10%-20%) (except for agricultural land);
- sale by any other company: VAT (4%-20%) (only for non-residential buildings and building plots, otherwise stamp duty [imposta di registro]);
- sale by private individuals: stamp duty (3%-10%-11%-18%) (depending on the nature of the asset).