Fear of a tax increase, but also the hope of reducing tax evasion. The land registry reform divides the moods of the Italians and the public debate, which thinks about the possible consequences of the maneuver on the real estate market. To understand what Italians think, Facile.it commissioned a survey to the research institutes mUp Research and Norstat. And the answer is surprising: more than one in two owners (57%) agree with the reform. Therefore, if the majority of those who own a property today see the intervention on the land registry as positive, with a peak of 63.1% among residents in the North West, against 16.3% is openly opposed. Still many, however (26.7%), those who have not yet got a precise idea about it.
The reasons for those in favor and against
Why do the majority of Italian owners agree with the land registry reform? 58.7% of those in favor believe that it can bring out the so-called “ghost” properties, that is to say those 1.2 million buildings still unknown to the land registry and the tax authorities. The percentage rises to 59.9% among respondents resident in the North West, while it reaches the minimum (54.7%) in Central Italy. 56.9% of favorable owners, on the other hand, think that the reform can help make taxation on properties more equitable and transparent. 18.1% are confident that, despite the reform, nothing will change in terms of taxation, while 13.1% are convinced that the modification would even lead to a lowering of the tax levy. The percentage rises to 18.5% among respondents who are looking for the first home to buy.
If you look at the owners who instead declared themselves opposed to the reform, the vast majority (78.9%) are unfavorable because they fear that the updating of cadastral values could lead to an increase in taxes on the house, while 49.3 % fears that the change could cause a higher expense in the event of a property purchase.
The effects of the reform in the event of a tax increase
As mentioned, the biggest fear related to the land registry reform is the possible increase in taxation on the house, the effects of which could have important consequences on the entire real estate market. 31.4% of those who are looking for their first home today said they were willing to give up the purchase if taxes were to increase. Even in the second home market, there could be a stop in sales as 29.7% of the total sample admitted that they are ready to give up the purchase of a second property.
“The change in the cadastral values of a property could have effects not only on the taxes that weigh on second homes, but also on the costs associated with the purchase of a home” explain by Facile.it “since the registration tax that is pay is calculated as a percentage of the cadastral value to the extent of 2% in the case of a first home, while it is equal to 9% in the case of a second home “. Not only demand but also supply; 2.2 million property owners could sell their second home in the event of a tax increase.