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The cadastral value of a property is a fundamental taxable base for determining the taxes that apply in many real estate transactions. Although there are several online tools that help you trace this important information about your home, it is still useful to know the factors that determine the final calculation. In this Casavo guide, you'll find all the steps to determine how to calculate the cadastral value of a property.
Cadastral value and cadastral income: what are the differences
First, let's define what the cadastral value of a building or structure is. This figure is used primarily for tax purposes to calculate taxes related to the transfer of real estate.
It is a different estimate than the market valuation of a home, which depends on different factors such as location, size, and general price trends.
You may have found yourself confusing this figure with the concept of cadastral income. Don't worry, this is a common mistake and quite legitimate at first glance, even though the two terms actually refer to very different notions.
The cadastral income is an indicator that is attributed for tax purposes to buildings capable of generating income. Its amount depends on the cadastral category of the building and is essential for establishing the amount of taxes such as IMU and for determining the tax value of a property. To calculate it you start from the dimensions of the housing unit – measured in terms of rooms, surface area and total volume – which are multiplied by the appraisal rate, a quotient that is defined by the competent Land Registry Office. This rate varies depending on the cadastral category and the area in which the residence is located.
How to calculate the cadastral value of a property
To determine the cadastral value of your home you need to start from its income. You can obtain this information by submitting a request to the Land Registry Office responsible for your home, even online, or to the Land Registry office. You should also be able to find this information from your latest tax return, perhaps by consulting your accountant.
Here's how to calculate the value of a property from its cadastral income. First, the income must be revalued by 5% and then multiplied by the coefficient legally assigned to the property based on its category. For residential buildings, there are two coefficients: one for primary residences and the other for other types of residences. Here is a summary table:
How to calculate the value of the property from the land registry income
Type of property Revaluation coefficient Land registry multiplier Main residence 5% 115.5 Other residence 5% 126
For example, let's imagine a home with an income of 650 euros. After the 5% revaluation, we get 682.5. In the case of a first home, we then multiply by the coefficient 115.5 and obtain a cadastral value of approximately 79,000 euros. For another property, however, the total amounts to just under 86,000 euros.
Why it is important to know the cadastral value
Perhaps you are wondering why it is important to know how to calculate the cadastral value of a property. This measurement is the basis from which to start to know the amount of certain real estate taxes relating to the property. In particular:
- for the registration tax, i.e. the fee to be paid to leave a trace of the sale transaction at the Revenue Agency, which has an amount between 2 and 9% of the cadastral value depending on the type of building;
- for the mortgage and cadastral taxestaxes, fixed between 50 and 200 euros for sales, but established on a percentage basis for donations and inheritances;
- to set the price of a house based on the price-value system, a valuation method for sales that allows for a series of savings and tax benefits, including a 30% reduction in notary fees.
Among the reasons why it is useful to know how to calculate the cadastral value of the property is also the calculation of the IMU. To know how to calculate the value of the property from the cadastral income and determine the amount of the single municipal tax, it is necessary to add the 5% revaluation and then multiply the total by coefficients different from those provided for the cadastral value. In the case of the IMU on second homes, for example, it is equal to 160.
At the end of this article on how to calculate the cadastral value of a property, you have the information you need to start the process of selling your home. If you want to ensure that it happens safely and quickly, why not present your home to us at Casavo? A series of exclusive benefits await you on our site, from the possibility of requesting a free estimate of its value to a direct purchase offer with full liquidation within 30 days!