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Taxes and Fees When Buying Property in Italy

When purchasing a property in Italy, buyers need to consider several taxes and costs. These vary depending on whether the property is bought from a private seller or a developer.


Registration Tax (Imposta di Registro)

This applies when buying from a private seller:

  • 2% of the cadastral value for a primary residence
  • 9% for a second home or non-primary residence


Value Added Tax (IVA)

This applies when buying from a developer (instead of registration tax):

  • 4% for a primary residence (non-luxury)
  • 10% for a second home
  • 22% for luxury properties (cadastral categories A1, A8, A9)

👉 You pay either VAT or registration tax, not both.


Cadastral and Mortgage Taxes

  • Typically €50 each when buying from a private seller
  • When buying from a developer, these are usually fixed at €200 each


Mortgage Tax (if applicable)

If you take out a mortgage in Italy:

  • 0.25% of the mortgage amount for a primary residence
  • 2% for a second home


Notary Fees

Notary fees are mandatory in Italy and usually range from 1% to 2% of the purchase price, depending on the complexity of the transaction.


Land Registry Fees (Diritti Catastali)

These are small administrative fees for registering the property and are typically minimal.


Estate Agent Fees

Estate agent fees in Italy are typically:

  • 2% to 4% of the purchase price + VAT (22%)
  • Usually payable by both the buyer and the seller


Ongoing Property Taxes

After purchase, property owners may need to pay:


IMU (Municipal Property Tax)

  • Payable on second homes and luxury properties
  • Not payable on a primary residence unless it is classified as luxury


TARI (Waste Tax)

  • Paid by the person occupying the property (owner or tenant)

👉 The exact amounts vary depending on the municipality and property value.


Running Costs

Utilities such as electricity, gas, and water are metered in Italy, so costs depend on usage. Additional expenses may include maintenance, insurance, and property management if applicable.


Important Note

Tax rules and costs can vary depending on the specific property, location, and individual circumstances. It is always advisable to consult a qualified notary or tax professional in Italy before proceeding with a purchase.