Registration tax on a house purchased at auction, how is it calculated?

If I purchase the house at auction, can I pay the registration tax using the "price-value method" instead of calculating the tax on the tax base determined by the purchase price? The answer to this question is the Revenue Agency which provided clarifications to a taxpayer through the FiscoOggi column.
The registration tax is a tax to be paid at the time of signing the notarial deed, its amount varies depending on whether it is a first home (preferential rate of 2%) or a property of a different nature (rate of 9%).
Let's first see what the "price-value method" is and the limits to its applicability and then why it can be applied in the case of purchases at auction.
Registration tax on a house purchased at auction, how is it calculated? The price-value method The price-value method also applies in the case of purchases at auction The price-value method The financial law for 2006 provided for the possibility of paying the registration tax on purchases of real estate by determining the base taxable using the price-value method.
This provides for the possibility of applying the registration tax on a taxable base having as a reference point the fiscal value of the asset and not the price actually paid.
Using this method allows you to save in all cases where the price paid is particularly high.
The first thing to remember is that the price-value method cannot be applied to all sales deeds, but certain conditions must be met, that is: the deed must be subject to registration tax, therefore excluding sales in which it applies VAT; the buyer must be a natural person who is not acting in the exercise of commercial, artistic or professional activities.
the deed must concern a property intended for residential use and appurtenances.
In the deed of sale the buyer must specify that he wishes to use this method for determining the registration tax.
This method allows you to save as the taxable base is generally calculated starting from the cadastral income multiplied by 1.05 and the coefficient 120.
The same is lower than the taxable base determined with the purchase price.
Following this application there will be no subsequent checks by the Revenue Agency because evidently the sales price is not included in the deed.
Naturally this last element has little relevance for the purchase of a house at auction.
Let's now see why the price-value method can be applied to calculate the registration tax when the purchase is at auction.
read also Purchasing a house with a company: advantages and disadvantages, notary costs and legal charges The price-value method also applies in the case of purchase at auction The taxpayer states in the request for clarification from the Revenue Agency In the case of purchasing a property through a judicial auction, assuming that the hammer price is higher than the cadastral value, is it possible to ask to calculate the registration taxes on the cadastral value (so-called value price) rather than on the hammer price? The Revenue Agency responds in the affirmative, underlining that this interpretation is not in conflict with the financial law for 2006 and in particular with paragraph 497 of article 1 of law 266 of 2005.
This thesis is supported by the ruling n° 6 of 23 January 2014 of the Constitutional Court, in fact the maxim of this sentence states: It is illegitimate, in relation to the articles.
3 and 53 of the Constitution, art.
1 – paragraph 497 – of law 23 December 2005, n.
266 in the part in which it does not provide for the right for purchasers of properties for residential use (with related appurtenances) – acquired during forced expropriation or following a public auction […] to request that, in derogation of art.
44- paragraph 1 of the Presidential Decree of 26 April 1986, n.
131, the taxable base (for the purposes of registration, mortgage and cadastral taxes) is constituted by the value of the property determined pursuant to art.
52 – paragraphs 4 and 5 – of Presidential Decree 131 of 1986.
Having established this unconstitutionality, we must lean towards the possibility for private individuals who do not carry out commercial, artistic or professional activities who purchase a property for residential use at a judicial auction, to request the determination of the taxable base for the tax of register with the «price-value method».
The Revenue Agency underlines that the buyer's request to use the value price system and the required declarations must be formulated, in any case, before the registration of the judicial provision (resolution no.
38/2021).
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