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[QUOTE=felicity]Hi. We have just taken an option on a farmhouse in Le Marche and would like some advice on taxation to change the classification of a building from agricultural to domestic. Can anyone give me an approximation of what tax we should expect to pay per square metre or maybe examples of what you have paid and the square meterage involved? The figures quoted by our agent and those in various books / magazines we've read vary wildly!!! Any help would be very much appreciated. Thanks[/QUOTE]

This is a very interesting question, as many properties in Italy are classified as rural and, for purposes of purchase with a mortgage, they must be re-classified as residential. There must be a cost associated with this? Anyone?

We got the vendor to agree to pay - he was, after all, selling it as a domestic property.

[quote=felicity]Hi. We have just taken an option on a farmhouse in Le Marche and would like some advice on taxation to change the classification of a building from agricultural to domestic. Can anyone give me an approximation of what tax we should expect to pay per square metre or maybe examples of what you have paid and the square meterage involved? The figures quoted by our agent and those in various books / magazines we've read vary wildly!!! Any help would be very much appreciated. Thanks[/quote]
What condition is the property in and how big is it in sqm? Under which municipality does the property come under?

[QUOTE=Charles Joseph]What condition is the property in and how big is it in sqm? Under which municipality does the property come under?[/QUOTE]

Thanks for your response. There are four buildings concerned. The first is the ground floor of the main house. This is 104sqm. The other three are outbuildings and are 112sqm, 84sqm and 42sqm. All the buildings are in very good structural condition. The municipality is Pesaro Urbino (PU).

We had this done. It cost us 2000 Euro for a 140 sq mtr house. We paid this to the Geometra who did the work, he then issued us with some new plans.

[FONT=Times New Roman][SIZE=3]Sorry for delay in replying but have been very busy.[/SIZE][/FONT]

[FONT=Times New Roman][SIZE=3]This is not an easy tax to determine from the outset because it varies across municipalities.[/SIZE][/FONT]

[FONT=Times New Roman][SIZE=3]In essence, it is based on a percentage of sqm of the area to be changed and contributes towards [/SIZE][/FONT]

[FONT=Times New Roman][SIZE=3]1) urbanizzazioni primarie (roads, drainage etc)[/SIZE][/FONT]

[FONT=Times New Roman][SIZE=3]2) urbanizzazioni secondarie (schools, hospitals, council etc)[/SIZE][/FONT]

[FONT=Times New Roman][SIZE=3]The other part of the tax is also based on sqm but is calculated on the cost of renovation as produced by the tecnico (geometra or architect handling the project).[/SIZE][/FONT]

[FONT=Times New Roman][SIZE=3]Each local authority has a table with different rates, although the percentage is based on renovation costs, which varies between 2% to 5%. However, the thing to watch out for is that the planning laws are also applied differently across different municipalities. For example, you may find that in some places the formula is based solely on the agricultural part of the building whilst in others the municipality may consider the whole building as agricultural. Therefore costs will vary on a case-by-case basis.[/SIZE][/FONT]

[FONT=Times New Roman][SIZE=3]The best thing to do is to take a copy of the project plans to the local planning office and ask them to provide you with the figures. Make sure you take your tecnico with you in order to check that the calculations are correct, thus avoiding paying out any unnecessary amounts.[/SIZE][/FONT]