{"id":10015,"date":"2025-10-17T11:25:00","date_gmt":"2025-10-17T09:25:00","guid":{"rendered":"https:\/\/www.thedreamre.it\/taxes-and-costs-of-real-estate-ownership-in-italy\/"},"modified":"2025-10-20T11:45:52","modified_gmt":"2025-10-20T09:45:52","slug":"taxes-and-costs-of-real-estate-ownership-in-italy","status":"publish","type":"post","link":"https:\/\/www.thedreamre.it\/en\/taxes-and-costs-of-real-estate-ownership-in-italy\/","title":{"rendered":"Taxes and costs of real estate ownership in Italy"},"content":{"rendered":"\n

When dreaming of buying or selling a home, it is essential to have a complete overview of the various stages involved, because it is not just the purchase price or sale value that needs to be considered: there are a series of taxes, expenses, and obligations that accompany each stage, from the first step to the day-to-day management of the property.<\/p>\n\n

Who has to pay taxes and when?And what other costs should be taken into account when buying, selling, or owning a property in Italy?<\/p>\n\n

In this guide, we will accompany you with simple and clear language to discover everything you need to know: taxes to pay, notary fees, mortgage-related expenses, and management costs that every owner must face.<\/p>\n\n

A practical and comprehensive guide that will help you avoid unpleasant surprises and plan your real estate investment in Italy in the best possible way.<\/p>\n\n

01: Purchasing real estate in Italy<\/strong><\/h2>\n\n

All property prices listed on websites or in brochures are the seller’s net prices. Taxes and costs must always be added to the agreed price because they depend on many factors, including the characteristics of the seller or buyer, and it is essential to be aware of this in order to make the best choices.When purchasing, the main difference is between buying from a private individual and buying from a construction company.<\/p>\n\n

\u2022 As a private individual (or VAT-exempt business): – First home: 2% of the cadastral value – Second home: 9% of the cadastral value – Mortgage tax + cadastral tax: \u20ac50 + \u20ac50<\/p>\n\n

To understand what this means in terms of cadastral value, let’s look at some concrete examples:<\/p>\n\n

Each property has its own cadastral income, which depends on many factors. To simplify, let’s take an example:<\/p>\n\n

property for sale at \u20ac2,000,000.00<\/p>\n\n

cadastral income of approximately \u20ac2,000.00<\/p>\n\n

In the case of the purchase of a first home, the cadastral income must be multiplied by 115.5. We then calculate 2% of the product, which is the registration tax (the additional tax cost to be incurred), i.e., \u20ac2,000 x 115.5 = 231,000 x 2% = \u20ac4,620.00. <\/p>\n\n

In the case of purchasing a second home, the cadastral income must be multiplied by 126. We then calculate 9% of the product, which is the registration tax (the additional tax cost to be incurred), i.e., \u20ac2,000 x 126 = 252,000 x 9% = \u20ac22,680.00. <\/p>\n\n

In order to purchase a property as your primary residence, here are the requirements for taking advantage of the \u201cfirst home\u201d benefits.<\/strong><\/h3>\n\n

Property location<\/strong><\/p>\n\n

The property must be located in the municipality where the buyer resides, or where they undertake to transfer their residence within 18 months of purchase<\/strong>.<\/p>\n\n

Property features<\/strong><\/p>\n\n

It must belong to non-luxury<\/strong> cadastral categories (A\/2, A\/3, A\/4, A\/5, A\/6, A\/7, A\/11).Categories A\/1, A\/8, and A\/9 (luxury homes, villas, and castles) are excluded.<\/p>\n\n

Personal situation of the buyer<\/strong><\/p>\n\n

You must not already own (even jointly with your spouse) another home purchased with first-time buyer benefits anywhere in Italy.<\/p>\n\n

You must not own another suitable dwelling in the same municipality.<\/p>\n\n

If you own another primary residence, you can still buy the new one as long as you sell the previous one within 24 months<\/strong>.<\/p>\n\n

In the case of purchase from a construction company, we would have to add VAT to the price agreed with the seller, while other taxes would be a fixed amount of \u20ac200.00.<\/p>\n\n

\u2022 As a company with VAT: – First home: 4% VAT + \u20ac200 registration fee + \u20ac200 + \u20ac200 – Second home: 10% VAT + fixed taxes – Luxury properties (A\/1, A\/8, A\/9): 22% VAT<\/p>\n\n

In the case of purchasing a first home from the builder, VAT applies:<\/p>\n\n

    \n
  • As a primary residence 2,000,000 x 4% = \u20ac80,000<\/li>\n<\/ul>\n\n

    The choice to purchase as a primary residence involves the characteristics we mentioned earlier. <\/p>\n\n

      \n
    • As a second home 2,000,000 x 10% = \u20ac200,000<\/li>\n<\/ul>\n\n

      If you decide to purchase the property through a company, even if purchasing from a private individual, you will pay taxes on the price and not on the cadastral income. The registration tax will be equal to 9% of the price. If purchasing from a construction company, you will pay 10% VAT. In these cases, a detailed analysis is essential to evaluate all aspects.<\/p>\n\n

      Other costs to be expected:– Notary: approximately 0.3%\u20130.5%; it is essential to obtain a quote– Lawyer (optional): approximately 1% + VAT– Bank (cashier’s checks, transfers): variable fees– Mortgage: substitute tax of 0.25% (first home) – 2% (second home) on the amount disbursed + application fees + appraisal– Technical due diligence, optional but useful. Keep in mind that the seller is required to have their own technician draw up a compliance report on the property, which must be delivered to the buyer and the notary. Often, the buyer also hires their own technician to verify the seller’s technician’s findings. The costs vary greatly because they depend on many factors.<\/p>\n\n

      02: Annual property taxes<\/strong><\/h2>\n\n

      Every year, a property owner must consider:– IMU, MUNICIPAL TAX, as a primary residence, is not payable<\/strong>.<\/p>\n\n

      Second homes and luxury properties. Calculated on the revalued cadastral value \u00d7 municipal tax rate (from 8.6 per thousand to 10.6 per thousand on the cadastral income) in Forte dei Marmi, it is equal to 10.6 per thousand.<\/p>\n\n

      – TARI: waste tax, mandatory for everyone, paid to the municipality according to regulations and rates, with a significant impact on the surface area of the property and the number of occupants.– Condominium fees: if apartment– Fixed utilities: electricity, water, and gas have basic costs even without consumption.<\/p>\n\n

      03: Sale of a property in Italy<\/strong><\/h2>\n\n

      For sales, if certain requirements are met, we can consider ourselves a tax haven because if you purchase a property as your primary residence and hold it as your main residence for more than half of the period between purchase and sale, you will not be subject to capital gains tax.<\/p>\n\n

      However, five years after purchase by a natural person, whether as a primary or secondary residence, there will be no taxation on the capital gain.<\/strong><\/p>\n\n

      Below we outline the hypotheses.– Real estate capital gains: \u2022 If you sell within 5 years of purchase \u2192 26% tax on the positive difference \u2022 After 5 years \u2192 no tax \u2022 Primary residence \u2192 exempt even within 5 years, provided that it has been used as a primary residence for more than half of the time between purchase and sale.– Other costs: \u2022 Mortgage cancellation (notary and registry) \u2022 APE certification (mandatory)<\/p>\n\n

      \u2022 Building compliance report<\/p>\n\n

      \u2022 Any urban planning regularization work \u2022 Real estate agency commission<\/p>\n\n

      04: Taxes and costs when renting a property<\/strong><\/h2>\n\n

      \u2022 Flat tax: 21% (or 10% with agreed rent)\u2022 Ordinary IRPEF: if you do not choose the flat-rate tax\u2022 Expenses: maintenance work, property tax, condominium fees, insurance\u2022 Agency commission: usually 5-10% of the rent<\/p>\n\n

      05: FAQ \u2013 frequently asked questions<\/strong><\/h2>\n\n

      Who pays the notary in Italy?\ud83d\udc49 The buyer<\/p>\n\n

      If I buy a home as my primary residence, do I have to pay IMU?\ud83d\udc49 No, except for luxury properties<\/p>\n\n

      How much does it cost to sell a house within 5 years?\ud83d\udc49 If it is not your primary residence, you pay 26% on the capital gain.<\/p>\n\n

      Can foreigners buy property in Italy?\ud83d\udc49 Yes, without any particular restrictions, except for reciprocal agreements with certain non-EU countries.<\/p>\n\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

      When dreaming of buying or selling a home, it is essential to have a complete overview of the various stages involved, because it is not just the purchase price or sale value that needs to be considered: there are a series of taxes, expenses, and obligations that accompany each stage, from the first step to […]<\/p>\n","protected":false},"author":3,"featured_media":9943,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-10015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/posts\/10015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/comments?post=10015"}],"version-history":[{"count":1,"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/posts\/10015\/revisions"}],"predecessor-version":[{"id":10016,"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/posts\/10015\/revisions\/10016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/media\/9943"}],"wp:attachment":[{"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/media?parent=10015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/categories?post=10015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thedreamre.it\/en\/wp-json\/wp\/v2\/tags?post=10015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}