Purchasing property in Italy involves several mandatory taxes. When buying, you’ll typically pay registration tax (imposta di registro) or VAT (IVA), depending on whether you purchase from a private seller or a developer.
Once you own the home, there are recurring local taxes such as IMU and TARI. Knowing these early prevents surprises and allows accurate budgeting.
👉 For a wider overview of Italy’s everyday systems, see: Italian Bureaucracy and Everyday Life.
Main Taxes When Buying
1. Registration Tax (Imposta di Registro) – Typically 2–9% depending on whether the property is a primary residence or second home.
2. VAT (IVA) – Applies if buying from a developer; usually 4% for first homes, 10–22% for other properties.
3. Mortgage and Cadastral Taxes – Minor fixed taxes applied by law.
The exact amount you pay depends not only on the type of property and who you buy it from, but also on your residency status and declared use of the home. For example, a first-time resident buyer can benefit from significant reductions, while a non-resident purchasing a second home will face higher rates.
These taxes are usually paid at the time of the property purchase, directly through the notary (notaio) handling the sale. The notary collects the amounts due and forwards them to the Italian tax authorities on your behalf. In some cases, VAT is included in the sale price and paid directly to the seller, who then transfers it to the state. Always ask your notary or real estate agent for a detailed breakdown of what you’ll owe and when payments are due.
Annual Taxes to Consider
• IMU (Imposta Municipale Unica): Local property tax based on cadastral value
👉 See What’s IMU?
• TASI (Tax for Indivisible Services): Paid for municipal services like street lighting and maintenance.
• TARI (Waste Tax): Charged for trash collection and disposal
👉 See What’s TARI?
Tips for Buyers
• Determine primary vs. secondary residence status to optimize tax rates.
• Consult a local Commercialista (accountant) for accurate calculations.
• Be aware of regional variations in tax rates; coastal areas may differ from inland villages.
Tax Deductions and Incentives
Renovation work, energy efficiency upgrades, and seismic improvements may qualify for tax credits. Keeping proper invoices is essential for claiming these benefits.
👉 Read about Tax deductions in detail.
Working with Professionals
Engaging a notary and an accountant familiar with Italy’s property laws ensures compliance and avoids costly mistakes.
Conclusion:
Italian property taxes are complex but manageable. Understanding each tax type, planning for annual costs, and leveraging local expertise makes property ownership in Italy transparent and stress-free.
Related Articles:
• Financing Your Property Purchase and Renovation in Italy
• Buying Property in a Historic Town in Italy: What You Need to Know