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Costs and Facilities for the Purchase of Agricultural Land

Do You Want to Buy Farmland? Expenses for Notary, Taxes and Other Expense Items to Know Before the Sale.

Are you considering buying farmland because you cultivate the dream of devoting yourself to farming? Or would you like to buy land as an investment, perhaps to later turn it into a building land?

Buying agricultural land is certainly an excellent investment opportunity because the land has fallen significantly lower than other types of real estate, such as residential real estate.

However, if you are looking for land to buy you will need to be aware of what costs to include for the purchase of agricultural land. For example, do you need a notary to buy land? Are there any tax breaks?

The first expense to consider is the notary's fee to which you will turn for advice on land to sell or buy. You must know, in fact, that it is not possible to enter into the act of buying and selling a land without a notary; It is, however, a good idea to ask the professional directly for a detailed quote, also due to the abolition of the unique notary rates that took place in 2012 following the Liberalizations Decree.
Costs and Facilities for the Purchase of Agricultural Land

However, in addition to the notary's fee, you will also need to consider the following taxes and expenses for the purchase of land:
  1. register tax, mortgage tax and land tax, the amount of which will depend on whether or not there are tax breaks on the ground and, in general, the rates applied, which in turn vary in relation to the price declared at the conclusion of the act, and not on the land value;
  2. Costs for visure : the release of the property visure provides for the payment of special property taxes, the amount of which may vary depending on visure in telematics mode, or viruses not on a conventional basis;
  3. Social security contributions;
  4. VAT on the professional's fee, which may also depend on the degree of complexity of the practice.

The Notary for the Purchase of Agricultural Land

To buy or sell land it is important to consult a professional who is able to handle any type of practice related to the sale of agricultural or building land, also specifying what will be the use of the land (agricultural, building or otherwise), the location where the plot is located and the amount of the purchase.
The notary will make a precise quote in which he will enter all the items of expenditure, so that, in a short time, you can get a precise idea of the expense that you will have to pay for the purchase of the land and, above all, you will be able to understand how much a notary act of agricultural land costs.

There are different types of land that can be purchased, and land sales have seen more changes in the law over the years than housing disputes, so it is good to inquire before undertaking any operation. First of all, taxes: these may vary in the presence or not of tax breaks.

Facilities for the Purchase of Agricultural Land

If you're wondering if you can take advantage of tax breaks on the purchase of farmland, you should know that an important concession on small farm property was introduced in 1949 and then renewed from year to year until it became final in 2012 with Law 25 of 26 February 2012.

With regard to the conditions to be met in order to take advantage of this benefit, you must be a direct grower or professional agricultural entrepreneurs, registered with the INPS pension fund.

These must be onerous purchases (e.g. trade or trade-in) of farmland or rural ancillary and fund-relevance buildings (such as tool depots, stables, barns, rural dwelling).

It is also forbidden to sell the land or cease cultivation for 5 years, subject to the loss of the facilities and the payment of financial penalties.

The subsidized tax provides for 2 fixed taxes (register and mortgage of 200 euros each) and 1% of land tax.

With the Stability Act 2016 you can also take advantage of the concessions on the small farm property the purchase by the spouse or descendant of the direct grower even if not enrolled in the INPS pension management provided that he already owns a plot of agricultural land, is already living with the direct grower who assumes the obligation to cultivate the land that for 5 years can not be sold.

Taxes for the Purchase of Farmland Without Facilities

Those who do not enjoy the benefits provided (e.g. companies or entities) will have to pay the register tax of 15% and the fixed land and mortgage tax of 50 euros each. For the purchase of non-farmland, always in the absence of specific concessions, you will have to pay the register tax of 9% and the mortgage tax and land tax always of 50 euros each.

In general, the rates applied will depend on the price declared at the conclusion of the act of sale, and not on the land value.

Expenses for Land Visure

In order to obtain the release of the land visures, it is necessary to provide for the payment of special property taxes.

For some categories of entities (for example, holders, even in part, of the right of ownership or other real rights of enjoyment) there is an exemption from the payment of special taxes for properties of which they are owner of land registry.

The amount owed as a special land tax, for each visures paid in telematics mode, is calculated by applying the current tariff reduced by 10%. Instead, it is increased by 50 percent for those visures provided non-conventionally, particularly in the case of:
  • Visures per subject: the requested amount is 1.35 euros for every 10 real estate units, or fractions of 10;
  • current or historical, per property, the amount is 1.35 euros;
  • Map: The amount is 1.35 euros.

Buying Land: Difference Between Farmland and Building

Expenses for the purchase of land may vary depending on whether it is agricultural land or building land. That is why it is good to have a clear idea of the use of land before the conclusion of the act of sale.

If a land is identified as agricultural it means that it is placed in an agricultural area, marked in the urban plan of the municipality with the letter E. The purpose of planning for the agricultural destination is to limit the building of dwellings in these areas, usually to protect the landscape and avoid overcrowding of buildings.

You might think that it is not at all possible to build on agricultural land, but in reality it is not entirely true. For example, houses can be built which are required by law for the farmhouse or the farmer's house and which are linked to the exercise of agricultural activity. In addition, in order to build on agricultural land the owner must carry out the agricultural activity for at least 3 years and respect the right relationships between the volume of the building and the total area of the land, in order to ensure the operation of the agricultural activity.

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