Taxes in Italy
Italy’s tax system is complicated and buyers should seek advice from an expert before purchasing real estate.
Transaction and registration taxes
VAT on purchases of new property for primary residence is 4%.
Buyers
Other fees when buying property equal
New property | ||||
---|---|---|---|---|
Primary residence |
Second home |
Primary residence |
Second home |
|
Registration fee |
EUR 200 | EUR 200 | 2% | 9% |
Cadastral tax | EUR 200 | EUR 200 | EUR 50 | EUR 50 |
Mortgage tax | EUR 200 | EUR 200 | EUR 50 | EUR 50 |
VAT | 4% | 10% or 22% (for luxury property) |
— | — |
Ownership tax
In Italy, there is a unified communal real estate tax comprising three separate taxes: 0.76% municipal real estate tax (primary residences are exempt), waste removal and recycling and municipal tax on road maintenance, street lighting, etc. Total rates do not exceed 10.6%.
Income and corporate taxes
Income tax is charged on all revenue earned by a person including property rental income, minus expenses and deductions. For individuals, it
Income, EUR |
Rates, % |
---|---|
Under 15,000 | 23 |
15,000–28,000 | 27 |
28,000–55,000 | 38 |
55,000–75,000 | 41 |
Over 75,000 | 43 |
Corporate tax is 27.5 % and certain organisations are exempt such as charitable foundations, religious institutions and sports clubs.
Capital gains, inheritance and gift taxes
Capital gains tax is 20%. Properties owned for more than 5 years are exempt.
Inheritance and gift tax range from 4% to 8% depending on the degree of relation and value of property. Real estate transferred between spouses or to children, the value of which does not exceed €1M, is exempt from inheritance and gift tax.
For spouses and children, real estate value exceeding EUR 1,000,000 |
4 |
---|---|
For brothers and sisters, real estate value exceeding EUR 100,000 |
6 |
For all other relatives, irrespective of the real estate value For unrelated individuals |
8 |
Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property.
We will send you a content digest not more than once a week