๐Ÿ‡ฎ๐Ÿ‡น Italy

Property Taxes and Buying Costs in Italy

Budget 5โ€“12% on top of the price for a resale apartment. On a 60 mยฒ apartment in Rome (about โ‚ฌ312,000) that is roughly โ‚ฌ15,600โ€“โ‚ฌ37,440.

Costs when you buy

Registration tax (imposta di registro)
9% of cadastral value for a second home; 2% for a qualifying first home (prima casa)
Cadastral value is often well below market price. Mortgage and cadastral taxes add โ‚ฌ50 each.
VAT on new builds (from a developer)
10% (4% prima casa, 22% luxury); then registration taxes are โ‚ฌ200 each
Notary
approx. 1โ€“2.5% of price plus VAT
Agent commission
approx. 2โ€“4% plus VAT, paid by the buyer

Costs while you own

Municipal property tax (IMU)
approx. 0.76โ€“1.06% of uplifted cadastral value for second homes; main homes exempt (non-luxury)
Waste tax (TARI)
Annual municipal fee
IVIE (Italian residents with foreign property)
Not relevant for non-residents buying in Italy

Tax on rental income

Non-residents can opt for the 21% flat cedolare secca on residential leases (26% for short lets beyond the first property) or pay progressive IRPEF.

Frequently Asked Questions

What taxes do you pay when buying property in Italy?โ†“
Registration tax (imposta di registro): 9% of cadastral value for a second home; 2% for a qualifying first home (prima casa). VAT on new builds (from a developer): 10% (4% prima casa, 22% luxury); then registration taxes are โ‚ฌ200 each. Notary: approx. 1โ€“2.5% of price plus VAT. Agent commission: approx. 2โ€“4% plus VAT, paid by the buyer.
What are total closing costs in Italy?โ†“
Typically 5โ€“12% of the purchase price for a resale apartment.
How is rental income taxed in Italy for non-residents?โ†“
Non-residents can opt for the 21% flat cedolare secca on residential leases (26% for short lets beyond the first property) or pay progressive IRPEF.
Buying property in Italy: step-by-step guide โ†’

Last reviewed 2026-10. General information, not tax or legal advice: rates change and often depend on region and buyer status, so confirm with a local notary, lawyer or tax adviser. Sources: Notaionline: Seconda casa, costi notaio.