Buying a house in cash does not mean going to the notary with the money in the briefcase, but buying without a mortgage. But beware of the tax inspections: here are the most common cases.
When we talk about buying a house with cash, we mistakenly think of the payment made with money in a briefcase. Although the limit on the use of cash has increased from 2,000 euros to 5,000 euros from 1 January 2023 given the prices, it is unthinkable to buy a house in cash without having problems with the tax authorities . The notary, in fact, is the guarantor of the legality of the transactions and, as a public official, must refuse any requests for payment beyond the legal limit https://www.dignityproperties.com/
The term “buying a house in cash” therefore refers to the situation in which the buyer buys the property without applying for a mortgage and uses his savings or inherited or donated sums, but in any case through traceable means of payment.
In any case, the attentive eye of the tax authorities could detect an anomaly between the expenditure incurred to buy a house and the declared income, triggering the ” income meter “. The buyer is thus forced to demonstrate the origin of the money to the territorial office of the Revenue Agency.
With these premises, let’s see all the cases for buying a house in cash without having problems with the tax authorities.
Buying a house with cash
Preliminary with cash advances within the limits of the law
Buying a house with parents’ money or the result of a donation
Buying a house with the proceeds from the sale of another house
Buying a house with inherited money
Preliminary with cash advances within the limits of the law
A frequent case is the stipulation of the definitive deed after the signing of one or more preliminary contracts in which the buyer has paid advances in cash respecting the established limit (currently 5,000 euros). For example, if the buyer has paid 14,000 euros in three preliminaries, the limit is respected.