How is the cadastral value of a house calculated?

We often hear about the cadastral income of a property, but what is it and what is it for? How is the cadastral value of a property calculated and how does it impact from a tax point of view? We introduce the topic by explaining, first of all, what the cadastre is: it is the inventory of all real estate which includes both buildings and land.
The land registry, in addition to allowing you to find the coordinates of a property, performs a very important fiscal function, given that it provides the tax base on which to pay the tax for real estate.
If the land registry provides the tax base, how is the cadastral value of a house calculated? In the following article we will illustrate not only the cadastral categories but also the cadastral income to calculate the cadastral value of a house.
read also How to lower the cadastral income How is the cadastral value of a house calculated? Real estate cadastral categories Cadastral income, what is it for? Cadastral value, how is it calculated? What value is indicated during the purchase and sale phase? Property cadastral categories When a property is registered in the land register, it is divided based on cadastral categories which serve to identify its intended use.
The cadastral categories are divided as follows: A for residential or office properties (for the specific definition they are, in turn, divided into subgroups such as A1, A2, etc.); B for collective accommodation such as schools and public offices; C for garages, parking spaces, shops, garages, cellars, etc…; D and E for hotels, theaters and factories; F for properties that are not profitable, such as properties under construction.
Cadastral income, what is it for? What is meant by cadastral income of a property? This is the value that the Revenue Agency foresees for each property or land, only when the latter is capable of producing an income.
When talking about cadastral income it is good to know that it is the taxable base on which the taxes are calculated on properties, such as the Imu.
The cadastral value, however, is also used to calculate other types of taxes such as mortgage taxes, inheritance taxes or personal income taxes (Irpef).
How is the cadastral income of a property defined? The two elements that determine it are: surface area and number of rooms in the property together with its volume; the unit appraisal rate, i.e.
a value that depends on the municipality in which the property is located.
What is the difference between cadastral income and value of the property? Value of the property and cadastral income are two different things given that with the value of the property we are talking about the actual value determined by the market price and with the cadastral income only a tax amount.
Cadastral value, how is it calculated? To calculate the cadastral value of any property it is necessary to take the revalued cadastral income and multiply it by a cadastral coefficient (which is different based on the category of properties).
To obtain the revalued cadastral income, however, the income itself must be increased by 5%.
As we have said, to calculate the cadastral value, the cadastral coefficients of the individual categories must also be known, which are: for the main homes, with the exclusion of A1, A7 and A8, the coefficient is 115.5; for category A (except A10) and C (except C1) properties the coefficient is 126; for properties in categories A10 and D the coefficient is 63; for category B properties the coefficient is 176.4; for category C1 and E the cadastral coefficient is 42.84; for agricultural land the coefficient to be used is 112.5 to be multiplied by the land income.
To obtain the calculation of the property value from cadastral income, the following formula must be used: cadastral income + (5% of the cadastral income) all multiplied by the cadastral coefficient.
Let's take an example of a property (main residence) of category A2 with a cadastral income of 360 euros.
To obtain the value of the property from the cadastral income, proceed as follows: [360 + (5% of 360)] x 115.5 = 41,598 Obviously the result obtained does not refer to the price at which the property must be sold but simply the value of the property based on its cadastral income which will serve to determine the tax base for calculating the taxes due.
It is, therefore, a value that can only be used for tax purposes.
The market value of the property, i.e.
what the property is worth if you want to sell or buy it, is what is used, therefore, in the buying and selling phase and is always quite different from the cadastral value (usually much lower).
What value is indicated during the purchase and sale phase? Usually when you make the deed of a property you are tempted to declare a lower price than the one actually agreed upon, in order to pay less taxes.
In any case, the Tax Office allows you to indicate not the price paid but the cadastral value, because at least in this case it is certain that the taxes are calculated correctly on the cadastral value.
In fact, practice dictates that if the deed indicates a price equal to or greater than the cadastral value, the tax authorities do not proceed with investigations, even if the value indicated is lower than the market value.