Real estate law in Sicily

How high is VAT in Sicily?

The VAT depends on whether the property is purchased as a primary or secondary residence and whether it is sold by a registered company or a private individual. If the property is purchased by a company, the tax is always a flat rate of €200. If it is purchased by a private individual as a primary residence, a tax of 4% is due. If purchased as a second home, the tax is 10%, 22% for luxury properties.

How does the purchase of a property work in principle

Once the parties have agreed on the sale, the purchase contract can be concluded in two ways. Firstly, a preliminary contract can be concluded. Here, basic details of the property are recorded and the buyer deposits 20-30% of the purchase price with the seller as security. If the buyer withdraws from the contract, the seller can keep the amount as a contractual penalty. If, on the other hand, the seller withdraws, he must pay the same amount to the buyer as a contractual penalty in addition to the amount received. This preliminary contract can also be notarized – which is recommended for a smooth process. The second option is to conclude a notarized purchase contract either directly or following the preliminary contract, as a result of which ownership is transferred to the buyer.

What are the main differences when buying real estate

In contrast to Germany, it is customary in Italy to conclude the preliminary contract described above, which serves as security for concluding the contract and not to resell the property to third parties in the meantime.

How high is the real estate transfer tax in Sicily

The real estate transfer tax is based on the cadastral value of the property, which is multiplied by a fixed coefficient. This is 115.5 for properties purchased as primary residences and 126 for secondary residences.

Att. Sascha Jung