The cadastral income of a property is a parameter of great importance for determining the value of income attributed to an asset by the Revenue Agency.Knowing how much this value is above all serves to clarify the tax basis with which the taxes to be paid on a property when you intend to sell or buy a house are determined.
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Cadastral income: what it is and when it is needed
Let’s see more specifically what the cadastral income is. The official definition is provided by the Italian legal system with the Royal Decree. It is the average gross income that can be deducted after deduction of the costs of repair, maintenance and any other expense or possible loss. The estimate tax refund matter is also relevant here and for that the tax calculator is the best one to be consulted.
These are not very simple words, we realize that. Let’s try to simplify them as much as possible: the cadastral income is the value attributed for tax calculations to any building capable of generating or producing income. It is particularly important when we have to:
Determine the value of a building for the calculation of taxes, also for the IMU on the second home that we talked about in our complete guide;
- Calculate the cadastral value for inheritances and mortgages
- Establish the tax value of an asset and its tax return
To determine how much it is, it is very important to know the cadastral category to which the property belongs. From a fiscal point of view, in fact, there is a significant difference between structures intended for residential use and simple warehouses, between a garage and a nursing home. In Italy there are four different macro-types of cadastral categories, let’s see how they are divided.
What are the cadastral categories?
The properties are grouped into four large cadastral categories. Each of them is then divided into sub-categories which in turn are divided into further classes.
It is the group to which dwellings and structures similar to dwellings, such as offices, belong. The group is in turn divided into sub-categories from A / 1 to A / 11. The cadastral consistency of the assets of this group is calculated in compartments.
Category reserved for collective housing buildings with a social or community character, such as prisons, hospitals and schools, measured in cubic meters and divided into eight subgroups.
It collects structures for various and commercial use, therefore shops and warehouses, but also garages, classified from C / 1 to C / 7. The cadastral unit of measurement is the square meter.
It is the group that collects hotels, cinemas, theaters, rural buildings and other properties for profit, collected in ten subcategories. The annuity in this case is established on the basis of a direct estimate.
Then there are two further groups, E and F, which include special purpose goods for public use (from stations to cemeteries, passing through traffic lights) and urban entities.
Each property therefore belongs to a specific cadastral category on the basis of which it is possible to determine with the right unit of measurement the size of the property, whether in rooms, square meters or cubic meters. This is the starting point for calculating the cadastral income.