Are you about to buy agricultural land in Italy? Here are some guidelines to buy it with awareness and without surprises.
AGRICULTURE is a very important economic sector in Italy. It contributes to the country’s GDP and employment. In addition, it also plays a major role in the Italian economy. Therefore, it is important to know how agricultural land works in Italy.
In Italy, when can we name land as agricultural?
- The destination of land derives from the current urban planning tool. The land included in AREA “E” is agricultural.
- The certification of urban destination or “CDU.” It is a document issued by the Municipality where the land to be purchased is located, which specifies the urban destination of the land (i.e., if agricultural, buildable, etc…………). Its acquisition is indispensable before the sale deed since it must be attached.
- 3. What taxes must the buyer pay? The sale of agricultural land is always subject to stamp duty (Imposta di Registro), regardless of whether the buyer is a company or an individual. In the absence of facilitation, the current tax rate is 15% applied to the purchase price. Unless differently agreed by the parties, taxes are charged to the buyer.
- 4. Tax benefits. The buyer in possession of the requisites required by the specific regulations can benefit from reduced taxes. The most important facilitation is for the farmers or registered agricultural enterprises. If you don’t pay stamp duty, the registration and mortgage taxes are applied in a fixed amount (Euro 200 each), and the cadastral tax is 1%.
- Land purchase is also facilitated in mountain areas (fixed registration and mortgage taxes of Euro 200.00 each and exemption from land registry tax).
- 5. The pre-emption right. The tenants of the agricultural land and the neighboring farmers are preferred in the purchase over the buyer. Therefore, informing the neighbors about the purchase proposal or the preliminary contract is essential to avoid issues after the deed of sale signing.
- 6. Access to land. It is important to check the access to the land to avoid problems after the deed of sale. The land is often accessed via third-party headlands. Knowing if there is a registered right of way in favor of purchasing land can avoid disputes.
Importance of Agricultural Land In Italy
The Italian agriculture sector is one of the most important sources of revenue for the Italian economy. The agricultural sector in Italy has been growing at an average rate of 2% per year since 1990. However, the sector faces several challenges
Where is Italy’s best agricultural land?
Italy is a land of farms. There are around 3 million farms in Italy and most of them are located in the south-east. This country also has a very rich agricultural history, which can be seen by the amount of farms that exist today.