What tax will I pay when buying a new property in Italy?

  1. Imposta di Registro (Registration Tax): If you buy a property from a private individual, you usually pay a registration tax. The amount of this tax depends on whether or not the property will be your first home (prima casa) in Italy. For a first home, the rate is 2% of the property’s cadastral value (a value well below market value), with a minimum payment of €1,000. For subsequent properties, the rate is 9%.
  2. IVA (VAT – Value Added Tax): If you buy a property from a developer or company and the property is new or revitalized, VAT applies. The VAT rate is 4% for a first home, 10% for vacation homes or second homes, and 22% for luxury properties or commercial properties.
  3. Imposta Catastale e Imposta Ipotecaria (Cadastral Tax and Mortgage Tax): When buying your first home, these fees are fixed at 50 euros each. When buying subsequent properties, both fees are 50 euros each.
  4. Notary fees: Notary costs are variable and depend on the value of the property and the complexity of the transaction. They usually range from several thousand euros.
  5. Real estate agency fees: If you use an agency, they are about 3% of the value of the property as standard, but can be negotiated.