Cadastral income: what it is and what it is for
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What cadastral income is in simple termsWhere to find the cadastral incomeWhat cadastral income depends onWhat it is used for: the taxes that use itWorked examples with numbersCadastral income and price: they are not the same thingCadastral income and compliance: when the details must matchIn practiceFrequently asked questionsSourcesCadastral income (rendita catastale) is the annual tax value that the land registry (catasto) assigns to a property. It is not the sale price: the State uses it to calculate how much you pay in IMU, in taxes when you buy, or in taxes when you inherit.
What cadastral income is in simple terms
The land registry (catasto) is the public archive in which every property is recorded with its details: where it is, what type it is, how big it is. Cadastral income is one of these details. It is a figure in euros, written in the land registry, that measures the annual value of the property for tax purposes.
One point needs to be kept in mind. Cadastral income is not a market price. A flat can be worth much more than its cadastral income, or much less, because the land registry works on tax criteria and not on sale negotiations.
Where to find the cadastral income
Cadastral income is written in the land registry extract (visura catastale), the document that shows the data recorded by the land registry for each property. If you are the owner, you can download the land registry extract online, free of charge. For other people the extract is paid.
In the extract you will find these details:
- the sheet, parcel and subordinate number, which identify the property;
- the category, for example A/2 for a residential home or C/6 for a garage;
- the class and the size, that is how many rooms (for homes) or how many square metres (for C-category properties);
- the cadastral income, in euros per year.
If you are evaluating a property at auction, the appraisal report (perizia) attaches the land registry extract and the cadastral floor plan. Compare them with the actual state of the home: if they do not match, you need to know before you bid.
What cadastral income depends on
Cadastral income is not chosen. The land registry assigns it to the property based on its details. The main ones are the category, the class and the size. The cadastral category indicates the type of property. The class indicates the level of the property within its category. The size measures how big it is: rooms for homes, square metres for C-category properties.
Two homes of the same size can have different cadastral incomes if they are in different categories or classes. For this reason you cannot compare two cadastral incomes without looking at the category.
What it is used for: the taxes that use it
IMU
IMU is the municipal property tax, which you pay to the Comune every year if you are the owner. The calculation starts from the cadastral income. The formula is this:
- cadastral income × 1.05 (statutory revaluation);
- result × multiplier, which depends on the category;
- result × rate, set by the Comune.
The multipliers set by law are these:
- 160 for homes (group A, except A/10) and for C/2, C/6 and C/7;
- 140 for B and for C/3, C/4 and C/5;
- 80 for A/10 and D/5;
- 65 for D;
- 55 for C/1.
The base rate is 0.86%. The Comune can raise it up to 1.06%. You can find the exact value for your property on the Comune's website or on the Ministry of Economy portal.
There are two deadlines: an advance payment by 16 June and the balance by 16 December, using form F24.
There is an exemption for your main home, provided it is your residence and your habitual abode. Luxury homes (A/1, A/8 and A/9) are not exempt: they pay at a reduced rate and with a deduction of €200 a year. Ancillary spaces (pertinenze), that is garages, cellars or parking spaces, are exempt together with the home, but only one for each of the categories C/2, C/6 and C/7.
Taxes when you buy
When you buy a home, the registration tax (imposta di registro) is normally calculated on the price you paid. There is, however, an option that can change the bill a lot: the price-value (prezzo-valore).
The price-value applies to homes and their ancillary spaces, when the buyer is a private individual who is not acting as a business and the sale is not subject to VAT (IVA). If you ask for it, the calculation base becomes the cadastral value, even if the price paid is higher.
The cadastral value is calculated like this: cadastral income × 1.05 × 120. For a first home (prima casa) the multiplier is 110 instead of 120. The registration tax is 9% for a second home and 2% for a first home.
At a judicial auction the price-value is requested from the sale delegate (delegato alla vendita) before the transfer decree (decreto di trasferimento). It does not apply to shops, offices, garages that are not ancillary spaces and land, nor if you buy through a company or if the sale is subject to VAT.
Taxes when you inherit or receive a gift
On inheritances and gifts of property, the mortgage tax (imposta ipotecaria) and the cadastral tax (imposta catastale) are paid, at 2% and 1% of the cadastral value respectively. If the heir meets the requirements for a first home, the two taxes are fixed, €200 each.
Worked examples with numbers
Example 1, IMU on a second home. Cadastral income: €500. It is not the main home.
- 500 × 1.05 = €525
- 525 × 160 = €84,000
- €84,000 × 1.06% = €890.40 a year, with the Comune's maximum rate.
If the Comune applies the base rate of 0.86%, the same home would pay €722.40 a year. Always check the rate of your Comune.
Example 2, purchase of a second home from a private seller for €100,000. Cadastral income: €500.
- Without the price-value: registration tax 9% on €100,000 = €9,000, plus €100 of fixed mortgage and cadastral taxes.
- With the price-value: 500 × 1.05 × 120 = €63,000. Registration tax 9% on €63,000 = €5,670, plus the €100 fixed.
The difference, in this case, is €3,330 of registration tax. The number changes with the actual cadastral income of the property.
Example 3, purchase of a first home. Cadastral income: €500.
- 500 × 1.05 × 110 = €57,750 of cadastral value.
- Registration tax 2% on €57,750 = €1,155.
These are example numbers: you will find the cadastral income of your property in the extract.
Cadastral income and price: they are not the same thing
Do not use cadastral income to work out how much a home is worth. For the price, look at the appraisal report, the listings and the OMI property values (quotazioni OMI) of the Osservatorio del Mercato Immobiliare (OMI) of the Italian Revenue Agency (Agenzia delle Entrate). OMI property values are indicative values by zone (zona OMI) and type, with a minimum and a maximum per square metre. They are not certain market prices.
A practical example: if two flats have the same cadastral income but one is in a more sought-after area, the price can be very different. Cadastral income does not reflect this.
Cadastral income and compliance: when the details must match
Cadastral income is linked to the property's cadastral details. In notarial deeds (rogiti) it is mandatory to state the cadastral details, the reference to the cadastral floor plan and the declaration of compliance. The law provides for the deed to be void if they are missing (law 52/1985, article 29). When the actual state of the home does not match the cadastral floor plan, this is called a discrepancy (difformità). You can understand how compliance is checked and how a discrepancy is fixed.
If you need to update the land registry, the procedure is called cadastral change (variazione catastale, DOCFA) and it is usually handled by a technician.
In practice
- Download the land registry extract and read the category, the class, the size and the cadastral income.
- Compare the cadastral floor plan with the actual state of the home, before buying.
- Calculate the IMU with the formula and check the Comune's rate.
- If you are buying a first home from a private seller, ask for the price-value at the right time and get it in writing.
- If the home is at auction, ask the sale delegate how to apply the price-value before the decree.
Frequently asked questions
Is cadastral income the same as market value?
No. Cadastral income is a tax value set by the land registry. The market price depends on the area, the condition of the property and demand. For the price, use the appraisal report, the listings and the OMI property values.
Do I need the cadastral income to buy a home?
Yes, mainly for taxes. Even if you do not pay the cadastral income itself, the cadastral value can reduce the base on which the registration tax is calculated, if you ask for the price-value and are entitled to it.
What happens if the cadastral income does not match the home?
If the cadastral income or the floor plan do not describe the actual property, you may have problems with the deeds and with taxes. Check the extract before buying and ask the notary or the professional to verify compliance.
Sources
In the same chapter
- APE (attestato di prestazione energetica): what it isThe APE is the document that shows how much energy a home consumes and gives it an energy class from A4 to G. Here is when you need it, how to read it and how long it lasts.
- Cadastral category (categoria catastale): A/2, A/3, C/6 and the others explainedThe cadastral category is the code that classifies the property (A/2, A/3, C/6…) and determines cadastral income and taxes. Here is what the letters and numbers mean.
- Certificate of habitability (certificato di agibilità): when it is neededThe certificate of habitability confirms that a home is fit for use. Here is when it is needed, how to check it before buying and what to do if it is missing.
- Cadastral code of the municipality (codice catastale del comune): what it isThe cadastral code is a four-character code that identifies the municipality (comune) in the land registry, and you need it to look up a land registry extract. Here is where to find it.
- Foglio, particella and subalterno: how to find themFoglio, particella and subalterno are the numbers that identify the property in the land registry (catasto): you find them in the notarial deed, the land registry extract and the auction appraisal report.
- Mortgage on a home: what it is and how it is cancelledThe mortgage is the guarantee the bank registers on the home for the loan. It is closed after the final payment, but it should be checked with a mortgage search: here's how.
General information, not legal or tax advice: the law and the notice of sale prevail.
