The Cadastre-Value price Guide, (e.g. Prezzo Valore) explains the rules of property transfers at the cadastre value, regardless of the amount (commercial value) indicated in the agreement; below, the summary of the guide:

What is the "cadastre price-value"

Starting from January 2006, you can adjust some tax transfers property at land value, regardless of the amount agreed upon and indicated in the. The purpose of the rule by which consumers and all citizens have only benefits, reflect an underlying logic of transparency in contracting and real estate equity in the tax: it is now possible to state the actual price agreed upon and at the same pay tax on only when the value of mechanisms determined by the revaluation of the cadastral income, so-called "automatic". The Notary has been, for over ten years, one of the main promoters of this mechanism, called the price-value, considered likely to preserve the full legitimacy of the acts of which the notary public ensures the faith and to recover the sense of a genuine collaboration between the state and citizens. Consumer Associations, and for institutional mission have this sense of civil partnership, strongly support the transparency of real estate sales contracts in order to eliminate the gray areas in which consumers and all citizens can more easily suffer abuse. The rule on the price-value allows, ultimately, the taxation of the transfer of property on the basis of their land value, while the emergence of the actual values of sales. Thus fails every convenience of direct tax statements ( "simulated money"), and eliminates the risk of negative impact on the effectiveness of the civil estate transfers. Must recognize the scope of business of the new system: the State seeks a hand to the people, aware that in the first phase of enforcement will suffer a reduction of income tax in the area, and people are constitutionally act as such, since the emergence of charges shows a real vision of more transparent market and the individual ability to pay. The action of the Notary and Associations of Consumers will aim to illustration of this new system, the drawbacks associated with previous practice, the benefits, not just the economy, the new standard, and where if necessary, should also be of contrast to "bad advisors" who, for reasons unclear, are trying to frustrate the operation.
The scope of the price-value according to current standards

Who applies the price-value

Shall be taxable supplies of the Register (other then, the supplies subject to VAT) in respect of individuals who do not act for the purpose of commercial, artistic or professional. Are therefore subject to the price-value of the supplies made by companies, enterprises or institutions, provided that with respect to "natural persons" and subject taxpayers to register (no VAT). In other words, in addition to all sales in which both parties are "private" are subject to price-value sales made to individuals, not from cedants-taxable persons (associations, foundations and the like), and also those made, provided to individuals, companies or companies under the exemption of VAT, for example, sales made by manufacturers or restructuring carried out over four years from the date of completion of construction or assistance, and sales made by companies that have not built or renovated the property.

Properties type that can benefit from the price-value system

Must be for residential property and related appliances (box, wineries, etc.). As confirmed by the Tax Administration  to support the scheme extends to appliances without limitation in number and even if purchased separately from the main well, provided it is in the act of purchasing the destination pertinenziale. The system also applies to purchases of housing and related appliances that can not enjoy the same facilities as the "first home". So even those who buy a second or third house, to pay taxes according to the ordinary rates, but may request that the tax is still done on the basis of the cadastral value: which is still a nice savings.

When you apply the price-value

It is considered mutually agreed that the term "transfer" includes, in addition to acts traslativi of property rights, including those constituting traslativi or partial interests in and enjoyment (eg bare property el'usufrutto).

There should be a request

The standard applies in respect of a request that the buyer must make to the notary: Although the rule appears to give freedom to the form and manner of expression of this request, it is certainly appropriate that the request is in the body of purchase.

The advantages of the standard and the consequences for those who do not apply

We have already stressed that the system of price-value consumers, all citizens and all communities have civil benefits. E 'should, however, the advantages that the new system bears the legal relations between the parties and their relationship with the authority, or point out the seriousness of the consequences, tax, civil, administrative and even criminal, that may result from the simulation of the price .

Reduction of fees

To prevent the notary fees, which, like all professional service are calculated on the actual price, are a possible disincentive to the implementation of new legislation, the legislature has prescribed that they are reduced, this reduction is fixed in 30 per cent. The National Council of Notaries, to ensure the full implementation of new legislation and collecting the bodies of Associations of Consumers, that the reduction is applied not only to the specific item "fees", which is only one element of the composition of the plot notarially, but the total compensation notary.

More information about the parcel notarially can be found on the site of the National Council of Notaries at www.notariato.it

The sale price

The mechanism of the price-value applies to the condition that is indicated in the price: "If it is hidden, even in part, the consideration agreed upon, the taxes are due on the full amount of the latter and apply the administrative penalty from fifty to one hundred percent of the difference between the tax due and that already applies in the stated amount, less the amount of the penalty imposed if necessary.. "

The effects on the parties

Pre-emption rights

Third parties who by law or by contract have a right of first refusal on the property sold, may well have the same priority, or redeem the property sold, the price stated in the notice of sale, unless the buyer can claim the refund the price actually paid.

Revoke bankruptcy

If the seller fails within one year from the sale, the administrator may revoke the sale, can then re-sold the asset, if the buyer knew the state of insolvency of the seller. Knowledge of insolvency of the seller shall be presumed if the value of the sold surpasses by more than one quarter of the consideration received. On the buildings to be used for the main dwelling or to his relatives and up to the third degree is not set aside the bankruptcy only if the sale is made "a fair price." In all cases aside, the buyer can creep in bankruptcy, ie claim back the money, but only to the extent stated in the act and not for what is actually paid.

Rescission of the sale

If there is disproportion between the value of the sale and the agreed price and the seller proves that the disparity is due to its state of need which the buyer has the opportunity, the seller may, within one year from the conclusion, the termination the contract for the lesion.

Other flaws and limitations of the sale to return the money

Where, for any services which is affected by the contract of sale, the same dissolves, the buyer may obtain a refund only price stated in the contract, unless you try (and this may prove impossible in the case of payment in cash) that it has agreed and paid a higher sum.

Professional Responsibility

It is configurable responsibility of those who suggest or advice to the taxpayer to simulate the price, or causes

The tax consequences

IRPEF Tax Deduction

The IRPEF deduction, due to the buyer for the building recovery interventions made by the seller, is determined in proportion to the price of the property stated in the sale or assignment.

Exclusion of assessment on income tax

Under the law, if the buyer makes use of the new rules on the price-value and indicates the actual document in the agreed amount, do not apply the rules sull'accertamento induction, assume that is not relevant for the purposes of determining taxable income, expenditures made for the purchase of the property, and any inductive for income tax can not be made. It is recalled that, in order not to be subject to inspection "inductive" is not sufficient to indicate in the contract price any simulated although higher than the land value, but indicate the real amount agreed. "

Privilege for the State

Acts made outside the conditions laid down by the price-value, where the parties have indicated in the contract, the real price, while stating a price in proportion to land parameters, the penalty by 200% to 400% of the increased tax bill, the credit should also be assisted by the privilege that burden the property purchased, and because the privilege is also enforceable against third parties, it is possible that the buyer has difficulty making subsequent resales of the .

Capital gains on resale

In case of resale of the purchased by declaring a lower price than actual use and the conditions of taxation on capital gains, it will be all the greater because the child has been declared the purchase price.

Penalties for the seller

The seller may suffer adverse tax consequences from the simulation of the price. The non-declaration of capital gain related to real estate real price involves the application of penalties for non or insufficient income tax return, in serious cases may constitute the crime of tax evasion.

Money-Laundering prevention discipline

The "price-value" interferes with the Money-Laundering prevention regulation, which provides penalties for cash payments in excess of 12,500 euros. The same law provides, in addition to the identification and registration, the reporting of suspicious transactions by the notaries.

Among the "index of anomaly" previsti21 the end of the reporting of suspicious transactions - can also be used for tax purposes - were identified as follows:

* "The client refuses to raise objections or to pay the purchase price by bank transfer or check, even if the sum is greater than € 12,500;
* "The customer intends to adjust the payments by a substantial amount of money in cash";
* "The customer wishes to conduct transactions through the use of cash or means of payment is not appropriate than the common practice and in view of the nature of the transaction, not justified activity or other circumstances";
* "The customer intends to conduct operations or condition values clearly different from those of the market";
* "The customer intends to buy a property with a substantial amount of money in cash."

Deduction of interest expense

The deduction of interest expense of mortgage contracts to purchase the house is permitted only for the portion of the loan equal to the price stated in the purchase and associated costs required by law, it follows that if the amount of the loan is greater the price stated for the difference you can not deduct interest on debt.

Indication of the analytical method of payment

The law provides that upon conclusion of all property transfers, the parties have an obligation to make a special declaration of the act of recognition bearing the words "analysis" of how to pay the price. To claim "analysis" of how to pay shall mean the particulars of payment (checks, transfers, etc..).
The requirement of identifying the mode of payment also covers amounts paid prior to (deposits, advances, etc.).. In case of failure, incomplete or false indication of such data are considered administrative fine from € 500 to € 10,000 and, for the purposes of registration, the assets are transferred subject to a declaration of value, canceling the request of the price-value . In addition to the administrative penalty is necessary then to consider the possible penalty that involves the penalty of imprisonment up to two years.

It 'clear that in the end, especially in cases provided for by the tax rules in the Law No 266/2005 on the price-value, the behavior simulator Party is devoid of any rationality: in fact in most cases from the simulation result of the price now only disadvantages and no real advantage.

It is possible to print or download to your computer the complete guide (pdf italian version only) by following this Link