Is it possible to buy a house with cash? No, be careful, don’t misunderstand. When we talk about cash, we don’t mean suitcases full of hundred-euro bills with which to pay the seller. Our perspective is different: is it possible to buy a house without taking out a mortgage?
It may happen that you have cash on hand. Obviously their origin is legitimate: they are life savings . Or more simply an inheritance . Or, why not, they are funds that come from a donation.
Other times it may happen that you want to sell your apartment and buy one that is more functional to the needs of the family, which in the meantime has expanded or shrunk. With the proceeds from the sale of a property, a new house is bought. Without necessarily having to take out a new mortgage.
Buying a house without a mortgage
Let’s reiterate the concept. When we talk about buying the house with cash, we don’t imagine the scene of a person who shows up at the notary’s, with a suitcase full of hard cash https://www.provisionhomes.com/we-buy-houses-nashville-tn/
When paying for a property, it is always necessary to do so through a bank : by bank transfer, cashier’s check or any other traceable instrument. This type of operation, however, could attract the attention of the Revenue Agency :
the spotlight could be turned on when the amount spent is disproportionate to the buyer’s income .
What must be done, at this point, in order not to make the tax agents suspicious?
Let’s find out, together, and see, step by step, what needs to be done. As regards the preliminary sale, it is possible to use banknotes freely, as long as the regulations in force on the use of cash are respected. In 2023 the limit is 5,000 euros: it is therefore possible to pay the installments of the preliminaries as long as they do not exceed this amount. In order to protect all the parties involved, the notary will have a declaration signed containing a sentence like this: ” Incompliance with the anti-money laundering regulations, the notary has the parties sign a declaration of origin of the money, specifying whether it derives from work, donations or other activities “.