The latest legislative news on home taxation.
When you sign a mortgage contract, you are not only faced with a financial outlay that is extended over time, defined depending on the individual contract in terms of installments, possible advances and so on, but you also need to fulfill some legal obligations regarding taxes.
These vary based on some data
first, whether the entity providing cyprus phone number library the financing is, as is usually the case, a bank or a finance company; secondly, whether we are talking about first or second home mortgage taxes.
If the lender is not a bank, the taxes are numerous, even if not prohibitive: the fixed registration tax on the financing contract, the proportional tax on guarantees issued by a party other than the debtor, the proportional mortgage tax for the registration and cancellation of mortgages granted, the fixed stamp duty on the financing contract and on the payment receipts of the installments and the proportional stamp duty on the bills of exchange issued.
The substitute tax
The tax situation is similar when the property you purchase is directly purchased from a private individual. The regime changes when the financing is provided by a bank. In this case, the mortgage contract is subject to a special tax called the substitute tax on financing, introduced to limit the financial outlay by the contractor and to simplify a process that can become very complicated, given a type of financing that is chosen by most Italians, even those who do not have an accountant at their disposal.
A welcome simplification
In essence, the application of the substitute tax in the case of a mortgage provided by a bank determines the exemption from most other obligations, and more specifically from the stamp duty, the registration tax, the land avaya proposes ‘innovation without disruption’ registry and mortgage taxes and finally from taxes on government concessions. Bills of exchange, however, remain subject to a specific tax, even if at a much lower rate: 0.1 per thousand instead of twelve per thousand. Even if theoretically the bank pays the amount, in all cases the credit institution itself applies a surcharge in the mortgage to cover these expenses.
Watch out for the first home
The amount of the tax varies depending on the purpose of the financing: the taxes on first home mortgages defin in this way amount to 0.25% of the total disburs, while in other cases the percentage is 2%. It is worth noting that the loan data term “first home” does not limit itself to indicating the main residence of the person taking out the mortgage, but is a very specific label whose nature it is essential to find out about before signing the contract in order to avoid having to spend much more money. In fact, the contractor is requir to simultaneously present a declaration to demonstrate that the property being purchas does not fall into the categories forc to pay the 2%.
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Category: Economy
Tags: real estate investments, home mortgages
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