The sale of a property at a symbolic price is risky as it is linked to both a tax and succession law issue.
In our legal system there is the principle of negotiating autonomy on the basis of which everyone is free to conclude a contract on the terms he deems most advantageous and convenient with the consent of the other party.
This principle also applies to real estate matters.
The parties are therefore free to regulate the sale price as they see fit: the seller, without prejudice to the buyer’s consent, can sell the asset for the price he prefers, even if it is much lower than the market price https://propertyleads.com/google-ads-for-real-estate/ From a statutory point of view, therefore, the sale of a property at a symbolic price is fully lawful, as is the complete donation.
But, this behavior can generate two kinds of problems when it is only a “cross” way to circumvent other obligations imposed by law: that is, obligations of a fiscal nature and of an inheritance nature.
In fact, the taxes on the sale of the property are calculated on the basis of the sale price, which then corresponds to the market value of the property as well as for the VAT which must be paid to the seller and is equal to 10% of the price. The lower the price, therefore, the less the buyer pays the treasury. The advantage is also for the seller who, by declaring a lower profit, will pay less income tax.
In the case of a donation, on the other hand, things go differently since the registration tax is measured on the basis of the cadastral value. The same goes for sales between private individuals, not subject to VAT, but to registration tax: here too, according to the rule of the so-called value price, the registration tax is calculated on the basis of the cadastral value of the asset, regardless of the consideration agreed in the deed of sale.
Therefore it is easy to understand that a sale at a symbolic price can be seen as tax evasion: the taxman assumes that no one would sell a house for a negligible amount and suffer a substantial loss. If he really wanted to perform an act of generosity, he could donate it.