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I am buying property for 75k euro. I am trying to ascertain amount of ITP to pay. Lawyer states “As to the value, although the cadastral value is 94.370 €, the value for the Tax Office is 137.780, 57 €. As the selling price is lower than that, your file might be reviewed and they might request you to pay the difference.”
What is the difference in these two values?
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In the worst case scenario financially you could be asked by the Tax Office to pay ITP (purchase tax similar to stamp duty in UK currently 10%) based on their value of 137,780.57E instead of on 75,000E. You would have the right of appeal but it would be up to you to prove the price you paid was genuine and there was no black money involved. If you bought from a bank in a repossession situation it would easier to prove that you bought at market value than if you bought from a private individual. The value at catastro might help your case depending on how old that valuation was and all the other circumstances. Is the property still a bargain at 81, 278E? However, if you were thinking of not declaring the true purchase price, think again as you could be looking at a criminal prosecution as well as the tax surcharge.
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