Buying a Home in Italy?

Here’s the Tax Playbook You Need (2026 update)

Purchasing a home in Italy is an exciting step, whether it’s a holiday retreat, an investment, or a future residence. To help you plan confidently, here is a clear overview of the main taxes you can expect to pay when buying a property in Italy.

1. Purchase Taxes (One-Time Costs at Acquisition)

The taxes you pay at the time of purchase depend on whether you buy from a private seller or from a construction company.

A. Buying from a Private Seller

You will pay:

• Registration Tax (Imposta di Registro):
  • 2% of the property’s cadastral value if you buy as a primary residence (“prima casa”)
  • 9% of the cadastral value for second homes or investment properties
• Fixed Mortgage Tax: €50
• Fixed Cadastral Tax: €50

Note: The cadastral value is usually lower than the market price, often resulting in a more favorable tax calculation.

B. Buying from a Construction Company (Newly Built Property)

You will pay:

• VAT (IVA):
  • 4% for primary residence
  • 10% for second homes
  • 22% for luxury properties (A1, A8, A9 categories)
• Registration Tax: €200
• Mortgage Tax: €200
• Cadastral Tax: €200

2. Annual Property Taxes

Once you own the property, the following yearly taxes apply:

• IMU (Property Tax):
  • Not due for primary residences unless the property is classified as luxury.
  • Applies to second homes and investment properties. Rates vary by municipality but typically range between 0.4% and 1.06% of the taxable value.
• TARI (Waste Collection Tax):
  Based on the size of the property and the number of occupants. It covers local waste management services.
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3. Additional Costs to Consider

While not technically “taxes,” buyers should also budget for:

• Notary Fees: Mandatory for all property transactions in Italy; costs vary with property price.
• Agency Fees: Usually between 3% and 5% of the sale price, plus VAT.
• Technical Checks / Surveys: Optional but recommended.

4. Special Notes for Foreign Buyers

• Buying property in Italy is open to most foreign citizens, with no restrictions for EU nationals.

• Non-EU buyers may require certain reciprocity conditions, depending on nationality.

• Tax rates are the same for foreigners and Italian citizens.

• Residency benefits (such as “prima casa” tax discounts) are available if you become official residents within 18 months of purchase.

If you would like a personalized tax estimate for your specific property or assistance throughout the purchasing process, the Gambedotti Real Estate team is here to guide you step by step.