The sale of building land by a private individual always generates a taxable capital gain. The practical issue is correctly determining the base and the costs that may be deducted.
The sale for consideration of land capable of being built on generates a capital gain that is always taxable as miscellaneous income, regardless of how long the land has been held. The planning classification of the land at the time of sale is decisive.
The capital gain is the difference between the consideration received and the acquisition cost (or the value declared where the land was acquired without consideration), increased by the related costs: acquisition charges, notarial fees, any infrastructure costs and other directly connected expenses.
Where it is available, revaluing the land on the basis of a sworn valuation and paying the imposta sostitutiva (substitute tax) allows the calculation base to be updated and the taxable gain reduced. It is a choice to be weighed up in good time, comparing the cost of the revaluation with the expected saving.