Article 2 of Legislative Decree 139/2024 changed registration tax on preliminary sale contracts from 2025, aiming to simplify the treatment of payments made before completion. This archive article discusses that reform; certain statements in the original require correction, as noted on this page.
Changes from 1 January 2025
The article describes a common proportional registration-tax rate for confirmatory deposits and advance payments towards the price, at 0,5%. The previous treatment distinguished between:
- 0,5% for confirmatory deposits;
- 3% for price advances.
The common 0.5% rate simplifies the treatment of sums not subject to VAT, subject to the statutory ceiling and the tax due on the definitive transaction.
Tax limits and crediting earlier payments
The original article then described a €200 maximum as a proportional-tax ceiling. This statement needs correction: the fixed registration charge and the cap linked to the definitive contract are different concepts. Tax paid on the preliminary contract is credited against the registration tax due at completion. For example:
- If €500 is paid at the preliminary stage and €650 is due on the definitive contract, the remaining amount is €150.
Refunds if completion does not take place
The original article suggested that mutual cancellation of a transaction allows a refund of the tax already paid. A refund is not automatic merely because completion does not occur; the legal basis and applicable procedure must be checked with the Revenue Agency or a tax adviser.
VAT-taxable transactions
For VAT-taxable sales, advance payments towards the price are subject to VAT and registration tax is generally fixed. Confirmatory deposits have a different treatment, so the original article's blanket statement that proportional registration tax never applies should not be relied on.
A worked example
Consider a property sale worth 500,000 euros, with a deposit of 100,000 euros paid when the preliminary agreement is signed:
- Before the reform: a price advance attracted 3%, or €3,000 in the example; a confirmatory deposit attracted 0.5%, or €500.
- After the reform: the example applies 0.5%, or €500, subject to the statutory rules and ceiling.
Tax already paid at the preliminary stage is credited against the registration tax due at completion.
The reform's intended benefits
The reform was intended to provide:
- Simplification: fewer disputes over how payments are classified.
- Fewer disputes: clearer dealings with the Revenue Agency.
- Transparency and predictability: a clearer understanding of tax costs.
- Support for compliant transactions: greater certainty when planning a property purchase.
For the authoritative provisions, consult Legislative Decree 139/2024 in the Italian Official Gazette.
The reform's aim was greater efficiency and transparency, but the original article's tax illustrations require professional verification before use.
