In short

On December 31, 2021, Legislative Decree no. construction.

Key points to remember

The main changes made by the decree are as follows:

1. Transfer formalization requirement: For the registration or formalization of legal acts, notaries must require accreditation of the payment of all the periods during which they have maintained the quality of taxpayer with respect to goods subject to property tax, tax on real estate sales and vehicle tax.

Until December 31, 2021, the requirement was limited to the financial year in which the act that was intended to be recorded or formalized was performed.

2. Increase in the property tax base: The increase in the amount of property tax, as a result of new urban empowerment and/or construction, will be enforceable from the end of the term of validity of the respective license and/or extensions, if any. In the specific case of buildings, the rule states that the highest amount of the aforementioned municipal taxes resulting from the increase in the tax base will be demanded by the municipality, provided that it issues a “verification” proving that the building is inhabited or delivered to its final owners by construction companies.

According to the text in force until December 31, 2021, increases in the tax base were not authorized during the execution of the works, unless after the expiry of the period of validity of the permit, the construction works or urban planning had not been completed.

Given this change, the property tax increase would be applicable as of the year following the municipal “audit”. With regard to taxes, meanwhile, it is foreseeable that the increase will be expected from the month following the aforementioned “verification”.

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