Before thinking about purchasing agricultural land, it is essential to find out about various aspects of purchasing and owning land. In addition to the IMU and the additional taxes linked to land income, among the taxes on agricultural land it is highlighted that the act of establishment of the surface right relating to agricultural land is subject to theregistration tax to the extent of 15 percent, as well as mortgage and land registry taxes at a fixed rate of 50 euros for each.
What taxes are paid on agricultural land?
The taxes paid on agricultural land, even in the case of a sale, can vary depending on the tax legislation. It is important to consult local tax authorities or an industry professional to fully understand the specific taxes that apply to agricultural land in a particular area. It is essential to check whether the land is classified as agricultural or not. Furthermore, the Municipality issues a Urban planning certificate (Cdu) which indicates whether the land is agricultural or buildable and whether it has ownership restrictions.
All this can affect the taxes that will be paid over time, as well as during the sale deed. However, below are some of the common taxes that can be applied on agricultural land:
- Land tax: This is a tax based on the value of the land. It can be calculated annually or at regular intervals established by local tax authorities.
- Agricultural income tax: If the land is used for agricultural purposes and generates income, it may be subject to agricultural income tax. This tax may be based on the net income derived from agricultural activities carried out on the land.
- Business tax: If the agricultural land is used for commercial activities, such as selling agricultural products or opening a farm, it may be subject to commercial or local taxes.
- Registration and transfer fees: when the sale or transfer of ownership of agricultural land occurs, registration or transfer taxes may be due.
- Local and regional taxes: Depending on your location, there may be other taxes or duties specific to agricultural land, set by local or regional authorities.
- Construction tax: If there are structures or buildings on the agricultural land, a construction tax may be due on those structures, even if they are intended for agricultural purposes.
The registration tax on agricultural land for direct farmers
L’registration tax on agricultural land sold to direct farmers was subject to areduced rate compared to that applied for other types of buyers. In particular, the stamp duty rate for agricultural land sold to direct farmers was generally 9%. This reduced rate was established to encourage investments in the agricultural sector and to support those who directly practice agricultural activity.
The Revenue Agency has clarified that the establishment of a surface right on private agricultural agricultural land is subject to a stamp duty with a15% rate, not 9% as previously indicated by the Supreme Court. This applies even when no specific tax breaks are provided. Therefore, thedeed of establishment of surface rights in relation to the agricultural land in question, it is subject to registration tax to the extent of 15 percent, in addition to mortgage and land registry taxes at a fixed rate of 50 euros for each.
As for the tax base, it is determined by the value of the asset or right at the date of the deed. This value is the one declared by the parties in the deed itself or, failing that or if higher, the agreed fee. If the deed concerns real estate or real estate rights, the value is considered the market value in common trade.
FromJanuary 1, 2022as established by the Budget law approved at the end of 2021, #you no longer #have to pay thefixed registration tax of 200 euros on deeds for consideration, but only for agricultural land with a value not exceeding 5,000 euros and for direct transfers to direct farmers and professional agricultural entrepreneurs registered with their social security management.
Taxes on waste land
Uncultivated agricultural land may be subject to a special tax call “waste land tax” or “non-use fee“. This tax is variable and could be applied to encourage owners of agricultural land to cultivate or use the land productively rather than leave it fallow.
How much #do #you pay in IMU on agricultural land?
When talking about calculating taxes on agricultural land it is impossible not to take into consideration theIMU. But the IMU, despite being commonly associated with real estate, has some exceptions that concern the land. Specifically, they are exempt from IMU the land of agricultural entrepreneurs and direct farmers registered with agricultural insurance, provided that it is used for agro-forestry-pastoral activities, forestry, mushroom growing and animal breeding. Even agricultural land with an immutable agro-silvo-pastoral purpose, of indivisible and inexcusable collective ownership, located in the smaller islands, enjoys exemption.
For agricultural land not falling within these exemption categories, the IMU must be paid to themselves deadlines expected for properties: deposit by June 16th and balance by December 16th. The calculation of the IMU on agricultural land, even if not cultivated, is based on the territorial income revalued by 25%, the result of which is multiplied by 135. An average rate of 0.76% is applied, subject to slight variations depending on of the Municipalities, between 0.46% and 1.06%.
