The real estate purchase process in Italy involves several bureaucratic phases, including the registration of the preliminary contract. A key aspect of this process is the management of taxes, specifically stamp duty. Recently, the Tax Office clarified some doubts regarding the possibility of deducting the fixed registration tax paid during this preliminary phase. In other words, we wonder if it is possible that the fixed tax paid in the preliminary phase of the sale can be refunded.
The clarification provided by the Tax Office eliminates any ambiguity regarding the deductions applicable in the real estate sales process.
Tax details of the preliminary contract
The preliminary contract, or compromise, serves to guarantee that both parties, seller and buyer, are committed to concluding the final sale. It is often used when the buyer needs time to obtain financing, or the seller is waiting for delivery of another home. The written form is mandatory for the validity of this agreement, which can be drawn up as a simple private agreement, authenticated private agreement or public deed.
For the registration of this contract, thefixed registration tax of 200 euros and stamp duty. This fixed charge is independent of the value of the property being traded.
The stamp duty, however, varies according to the method of drafting the contract: 16 euros for every four pages or for every hundred lines in the case of a simple private agreement, and 155 euros if the contract is formalized through a public deed or authenticated private agreement .
Deductions and refunds
The proportional taxes paid during the preliminary phase can be deducted from the taxes due upon signing the final sales contract. Furthermore, if the proportional tax paid is higher than the tax due for the definitive contract, it is possible to request a refund of the difference. This request must be submitted within three years from the date of registration of the definitive contract to the office that carried out the registration.
Tax clarifications: non-deductibility of the fixed tax
The doubt raised concerned the possibility of deducting the fixed registration tax of 200 euros paid during the registration of the preliminary contract. The response from the tax authorities, published in “Fisco Oggi”, the online magazine of the Revenue Agency, was clear: this tax is not deductible in the final sales contract.
Although the fixed stamp duty is non-refundable, the regulations offer other ways to recover part of the tax burden incurred, thus easing the path for property buyers.
In fact, the tax authorities have specified that if a payment is made in the preliminary contract, such as a confirmation deposit or a deposit on the sales price, a tax of proportional register. The latter amounts to 0.50% on the sums given as a deposit and 3% on the down payment of the price. These taxes paid will then be deductible from the taxes due upon signing the definitive contract.
Registration procedure
For legal validity, the preliminary contract must be drawn up in written form and registered within 20 days of signature. If the registration is carried out by notarial deed, the deadline extends to 30 days. This practice ensures that all financial details and obligations of the parties are duly documented and recognized by the tax authorities.
