Budget 2024: tax measures in the real estate sector

The Chamber has given the green light to the budget law for 2024

The final form of the maneuver mainly reflects the text proposed by the government, which the Bank of Italy, Confindustria and ISTAT had considered a prudent approach.

As anticipated in the article "2024 Budget Law in the Senate: the main news for the house", the maneuver contains tax news and real estate in nature.

Guarantee fund for the purchase of the first home

Article 1, paragraph 7 and 8, of the maneuver confirms the extension to 31 December 2024 (deadline already deferred from 30 June 2023 to 31 December 2023) of the possibility of taking advantage of the maximum guarantee of 80%, from the Fund itself, on the principal portion of the mortgages for subjects who fall into the priority categories, or have specific income and age requirements, and assigns an additional 282 million euros for the year 2024 to the aforementioned Fund.

The law adds family units among the subjects of the priority categories and applies to these specific provisions regarding the maximum guarantee that can be granted.

From 1 January the tax breaks for the purchase of a first home are no longer in force for those under 36 with an ISEE not exceeding €40,000 who therefore return to paying registration, land registry and mortgage taxes. However, the public guarantee for the mortgage remains in force if all the requirements necessary to obtain the benefits for the first home are met.

Short rentals with flat rate coupon of 26%

Article 1, paragraph 63, modifies the rate applicable to short-term rentals subject to flat rate tax, increasing it from 21 to 26 percent for rental payments of up to 30 days, from the second rental property onwards.

The 21% rate continues to be applied to income deriving from the short-term rental of a real estate unit and the choice on which contract to apply this rate is left to the taxpayer when filing his tax return who will probably choose to apply it to the contract with the highest rental fee. It should be noted that in the absence of choice the ordinary rate of 26% applies.

The news for subjects who carry out real estate brokerage activities or who manage online portals, if they collect or are involved in the payment of the related fees, is that the withholding tax (21% rate), made at the time of payment, is considered as a deposit in the case of short-term rental of more than one apartment in the tax period.osta.

The law also updates the compliance methods by distinguishing between residents or non-residents in the European Union depending on whether or not they have a permanent establishment in a member state.

It is provided that for the payment and certification with the mod. 770 of the withholdings made:

• The non-EU or EU subject with a permanent establishment in Italy, or in an EU State, fulfills the obligations through the permanent establishment;
• The non-EU subject without a permanent organization in an EU State fulfills the obligations through a tax representative;
• The EU subject without a permanent organization in Italy fulfills the obligations directly or through a tax representative.

In the absence of appointment of the tax representative, resident subjects belonging to the group of the non-resident subject without a permanent establishment are jointly and severally liable for the implementation/payment of the withholding tax.

Remaining on the topic, last December new features were introduced regarding the amenities of properties in tourist rental. The properties must be equipped with compliant systems, combustible gas and carbon monoxide detectors and portable fire extinguishers. Furthermore, anyone who offers their property for short-term rental or for tourist purposes must have a National Identification Code (Cin), which will be used for anti-evasion purposes.

Properties and Superbonuses

With respect to what previously communicated, it is specified that the taxable capital gain deriving from the sale of buildings in the following 10 years from the completion of the works, is generated regardless of the length of time the property has been in possession and of the person (i.e. owners, tenants, borrowers or cohabiting family members) who has supported the expenses, as well as regardless of whether they have benefited from the deduction in the tax return or have opted for the transfer of credit or for the discount on the invoice.

Any additional revenue will flow into a specific chapter of the state budget and will be allocated to the "Fund for the reduction of tax burden".

The presentation of the "Declaration of change in the state of the assets" is required in relation to building interventions facilitated by the Superbonus and to allow the updating of the cadastral data. In this sense, it is provided that the Revenue Agency will verify the fulfillment of this obligation, also for the purposes of any effects on the cadastral income of the property, and will send any communication to the taxpayer.

Revaluation of land and equity investments

The budget law extends the provisions regarding the revaluation of the cost of purchasing land and shareholdings owned by natural persons, simple companies, professional associations and non-commercial entities, outside of business income.

In detail, the assets affected by the revaluation are:

• Building and agricultural land held by title, usufruct, surface and emphyteusis;
• Listed or unlisted shareholdings held by title or usufruct.

A substitute tax at a rate of 16% on the appraised value is set on assets owned on 1 January 2024. By 30 June 2024 the taxpayer must prepare and certify the appraisalestimate and payment of the substitute tax. The tax can be paid in a single payment or in three equal annual installments (annual interest equal to 3%).

It should be noted that for the shares/rights traded on regulated markets/multilateral trading systems, the normal value referring to the month of December 2023 will be considered for tax purposes.