Property buying guide for Italy
Article 6 of 6

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%. Newly-built holiday homes bought by non-residents have 10% VAT. For luxury second homes, VAT is 22%.

Buyers of pre-owned real estate in Italy pay a fixed registration tax of 2% for primary residences and 9% for second homes. There is no registration tax for new residential buildings (imposta di registro).

Other fees when buying property equal 2–4% of the estimated value of property. They include cadastral tax (imposta cadastrale), mortgage tax (imposta ipotecaria), filing and notary services. Notary fees are usually 1.0–2.5% of the property price and can reach €5,000–7,000 for property valued between €300,000 and €1M.

Transaction and registration expenses

New property Pre-owned property
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 is 23–43%, plus regional tax of up to 3.33% and municipal tax of 0.1–0.9%.

Income tax

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.

Inheritance and gift taxes, %

For spouses and children,
real estate value exceeding
EUR 1,000,000
For brothers and sisters,
real estate value exceeding
EUR 100,000
For all other relatives,
of the real estate value
For unrelated individuals

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.

Property buying guide for Italy
Article 6 of 6
Tranio’s managers offer advice on buying real estate in Italy
Daria Batiuk
Daria Batiuk
Real Estate Expert Tranio in Italy
+44 20 3608 1267
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