Cadastral income is the economic value assigned by the Italian Revenue Agency to a property recorded in the Buildings Cadastre. It represents the theoretical income that the property could produce under cadastral criteria. In simple terms, it is a fiscal value used to calculate various taxes.
It does not correspond to a home’s market value. It is neither the actual value in a sale nor the price a seller might obtain. An apartment may have relatively low cadastral income but a high commercial value because of its sought-after location or valuable features.
It is determined by the property’s characteristics, including its cadastral category, class, size, area and use. Homes, offices, shops and garages belong to different cadastral categories and may therefore have different assigned incomes.
Its main purpose is taxation. It is used to calculate several property-related taxes, including IMU where applicable, certain taxes due on sales, mortgage-register and cadastral taxes, and other property levies.
In a sale, it helps establish the cadastral taxable base on which certain taxes are calculated. For residential properties bought by private individuals who meet the legal requirements, the prezzo-valore system may apply, allowing tax to be calculated on the adjusted cadastral value rather than the declared sale price.
The cadastral value is calculated by adjusting cadastral income using statutory coefficients. The result is a conventional fiscal value used for tax purposes.
Cadastral income appears in the cadastral extract, together with identifying information such as the cadastral municipality, map sheet, parcel, sub-unit, category and class.
It differs from a cadastral floor plan. The plan depicts the property’s internal layout; cadastral income is a numerical fiscal value. They are connected but serve different functions.
The assigned income may change when works alter the property’s extent, for example extensions, mergers, subdivisions or changes of use. The cadastral position must then be updated and a new income may be assigned.
In conclusion, cadastral income is principally a tax-related value, not the home’s selling price or actual economic worth. It is essential for calculating many taxes and understanding the property’s cadastral position when buying, selling or managing real estate.