As from 1 January 2006, it has been possible to meet the taxation requirements on some real estate transfers at the land registry's valuation, regardless of the price agreed and shown in the contract.
The rule that first introduced the price-value concept was Article 1, Paragraph 497 of Law no. 266 of 23 December 2005 (2006 Budget); there were two subsequent amendments: Article 35, Paragraph 21 of Legislative Decree no. 223 of 4 July 2006, converted with modifications into Law no. 248 of 4 August 2006 (the so-called Bersani-Visco decree); and Article 1, Paragraph 309, of Law no. 296 of 27 December 2006 (2007 Budget).
The text of the rule in its present form is as follows: “As an exception to the regulations under Article 43 of the unified text of provisions concerning stamp duty in Presidential Decree no. 131 of 26 April 1986, and except for the application of Article 39, Paragraph 1 d), last clause, of Presidential Decree no. 600 of 29 September 1973, and only in the case of sales to physical persons who are not acting in the interests of a commercial, artistic or professional business activity of properties used for residential purposes and related accessories, at the time the sales contract is entered into and upon request made by the purchaser to the notary, the property valuation for the purposes of stamp duty, mortgage and land registry taxes may be that determined under Article 52, Paragraphs 4 and 5 of the above-mentioned unified text in Presidential Decree no. 131 of 1986, regardless of the price agreed and shown in the contract. The notary's fees are reduced by 30 per cent.”
This rule, which brings only benefits to consumers and the public in general, is intended to bring transparency to real estate negotiations and equity in the taxes levied on the transaction: it is now possible to show the real price agreed and at the same time pay the taxes and duties relating to the sale only on the value of the property as determined by the revaluation mechanisms of cadastral income, the so-called "automatic valuation".
The notarial profession has for over ten years been one of the main proponents of this mechanism, called price-value and calculated to safeguard the total legitimacy of contracts for which the notary is the guarantor of public trust and to recover a sense of fair play between the State and its citizens.