When a property conveyance takes place, the Italian tax laws stipulate the payment of certain taxes and charges which generally must be paid, at the time the notarial contract is stipulated, to the notary himself who thus undertakes the “irksome” task of tax collector.
Such taxes are mostly payable by the purchaser.
At the time of purchase, the system taxes the “wealth” indirectly manifested by the purchaser which consists of the price paid for the purchase of the property (so-called indirect taxation).
Nevertheless, the vendor too in certain specific cases may find he is taxed on his gain from the sale of the property, in other words the wealth directly obtained through the sale of this asset (so-called indirect taxation).
Sometimes, considering how it may influence the decision to sell/buy, it is useful to know, if even only in summary form, what taxes and charges are applicable to a conveyance, for both vendor and purchaser. For the vendor in particular, the sale of a property, in certain circumstances, may bring unpleasant surprises of an economic nature, such as to influence significantly the decision to sell or at least the effective gain that may be made.