Cadastral value: how it is calculated
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What cadastral value isThe formula, step by stepWhen cadastral value replaces the priceCadastral value at auctionsDo not confuse cadastral value with IMUWhere to find the income and categoryIn practiceFrequently asked questionsSourcesCadastral value is calculated like this: take the cadastral income (rendita catastale), multiply it by 1.05 and then by 120. If it is your first home, multiply by 110 instead of 120.
It is a tax figure. It is mainly used to calculate the purchase taxes when you choose the price-value option (prezzo-valore).
What cadastral value is
Every property has a cadastral income, meaning an annual tax value that the land registry assigns to the unit. You will find it in the land registry extract (visura catastale), the document that summarises the data recorded by the land registry.
Cadastral value starts from that income and turns it into a base on which taxes are calculated. It is not the market price and it is not the valuation in the auction appraisal report (perizia). It is used for tax calculations, not to say what the house is really worth.
The formula, step by step
For residential properties the calculation is as follows:
- take the cadastral income from the land registry extract;
- multiply it by 1.05;
- multiply the result by 120, or by 110 if it is a first home.
Let's take an invented case with an income of €500.
- Income: €500.
- €500 × 1.05 = €525.
- Second home: €525 × 120 = €63,000 of cadastral value.
- First home: €525 × 110 = €57,750 of cadastral value.
Redo the calculation with the income written in your own land registry extract. The result changes with every property, even in the same building, because category, class and size differ.
When cadastral value replaces the price
As a rule, the registration tax (imposta di registro) is calculated on the price you pay. Cadastral value only comes into play if you ask for the price-value option, the rule provided by the 2006 Budget Law (Law 266/2005, paragraph 497). To request it, all of the following conditions must apply:
- the property is a dwelling or an ancillary unit of one;
- the buyer is a natural person who is not acting as a business;
- the sale is not subject to VAT (IVA);
- you request it expressly.
It does not apply, for example, to shops, offices, non-ancillary garages and land. It does not apply either if you are buying a company or if the deed includes VAT.
Let's take another invented case. The price is €100,000 and the property has a cadastral value of €63,000 (second home).
- Registration tax at 9% on the price: €9,000.
- Registration tax at 9% on the cadastral value: €5,670.
- Difference in tax: €3,330.
If it were a first home, with tax at 2% and a cadastral value of €57,750:
- on the price of €100,000: €2,000;
- on the cadastral value of €57,750: €1,155.
The mortgage and cadastral taxes for buying from a private seller remain fixed, €50 each, in both cases.
The price-value option is your choice, not an obligation. Before asking for it, do the sums with the notary or the professional assisting you, comparing the tax on the price with the tax on the cadastral value.
Cadastral value at auctions
At court auctions the registration tax is calculated on the award price, meaning the amount for which you win. The price-value option is still possible, but it must be requested in a different way.
The request is made in writing to the sale delegate (delegato alla vendita) before the transfer decree (decreto di trasferimento), the act by which the judge transfers ownership to you. You can state it already in your offer or immediately after the award (aggiudicazione). The decree records the request.
If you do not request it in time, the price-value option does not apply. The Agenzia delle Entrate may also check that the declared price is the price actually paid.
Do not confuse cadastral value with IMU
IMU, the annual property tax, uses a different calculation. You start from the income, multiply it by 1.05 and then by a multiplier that depends on the category. For residential properties in group A (excluding A/10) the multiplier is 160.
With an income of €500 and a second home, the calculation is: €500 × 1.05 × 160 = €84,000 of taxable base. The municipal rate applies to this base: the basic rate is 0.86% and the municipality may vary it up to 1.06%. You can find the exact rate on the municipality's website or on that of the Ministero dell'Economia e delle Finanze.
The same cadastral value is also used for inheritance tax (imposta di successione) and for gifts of property. The rates and exemptions there are different, so do not apply the figures in this article to those cases.
Where to find the income and category
The income and category are in the land registry extract. The owner can download it online free of charge. Anyone who is not the owner must pay for it, usually through the offices or the service of the Agenzia delle Entrate.
The category indicates the type of property: A/2 and A/3 for dwellings, C/6 for garages. If the category or size does not match the actual state of the property, the income may also be wrong. The calculation must be redone after the correction.
To check whether the property is really registered as you see it, compare the extract with the cadastral income and with the floor plan.
In practice
- Find the cadastral income in the land registry extract, together with category, class and size.
- Check that the category matches the property: dwelling, garage, shop.
- Calculate the value: income × 1.05 × 120, or × 110 for a first home.
- If you are buying a dwelling and want the price-value option, request it in writing at the right time: to the notary in the notarial deed (rogito), and to the delegate before the decree at auctions.
Frequently asked questions
Is cadastral value the same as the market price?
No. Cadastral value is a tax figure derived from the income. The market price depends on area, condition, floor and demand. The price of a house can be higher or lower than its cadastral value.
Can I ask for the price-value option for a garage or a shop?
Not as a rule. The price-value option concerns dwellings and their ancillary units, bought by a natural person who is not acting as a business. For shops, offices, non-ancillary garages and land, the tax on the price applies.
What happens if the income in the land registry extract is wrong?
If the category or size does not match the actual state of the property, the land registry must be updated with a change filing (DOCFA). See the guide on cadastral change (DOCFA). Until it is corrected, a calculation based on the wrong income is not reliable. Ask the notary or the professional to check it before the notarial deed.
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.
