Taxes

Taxes with the purchase of real estate in Italy:

  • Real estate taxes and land taxes in Italy can be nominally divided into 2 parts:
  • One-time payment when signing the Act of Purchase and Sale at the Notary
  • Annual tax payments
  • The amount of one-time payment when signing the Act of Purchase and Sale depends on few factors:  
  • If you buy a real estate unit from a private person or from a legal entity
  • If the real estate unit is the first real estate unit «prima casa» or another one «seconda casa» registered in your name on the territory of the Italian Republic.  

Prima casa 

is the main place of accommodation where you must be registered.

Seconda casa  

is the rest of your property

All taxes connected with purchase of the real estate / land should be paid by certified cheque, when signing the Act of Purchase and Sale at the notary office

THE FOLLOWING TAXES SHOULD BE PAID when you buy a real estate unit from a private person

  1. When buying real estate from a private person, if it is the first property registered in your name (prima casa), the registration tax is 2% from the cadaster value, but anyway the minimum amount is 1000€.
  2. When making the second purchase and the sequential one (seconda casa), the registration tax is 9% from the cadaster value.
  3. VAT not payable.
  4. The notarial fees for making the Act of Purchase and Sale in Imperia differ, but it is approximately equal to 1% from the actual value of the real estate unit indicated in the notarial act. VAT is charged to the notarial fee.  
  5. The amount of other duties and taxes (cadaster and mortgage ones, stamp duty) is approximately equal to 1000€.

One should mention that, as a rule, the cadaster value is 20-40% less than the actual value of the real estate unit.

the following taxes should be paid When you buy a real estate unit from a legal entity

  1. When buying real estate from a legal entity, if it is the first property registered in your name (prima casa), VAT is 4% from the actual value of the real estate unit.
  2. When making the second purchase and the sequential one (seconda casa), VAT is 10% if it’s a new-built property; it is calculated from the actual value of the property indicated in the Act of Purchase and Sale; and the registration tax is 9% from the cadaster value of the property
  3. The notarial fees for making the Act of Purchase and Sale in Imperia differ, but it is approximately equal to 1% from the actual value of the real estate unit indicated in the notarial act. VAT is charged to the notarial fee.
  4. The amount of other duties and taxes (cadaster and mortgage ones, stamp duty) is approximately equal to 1000€.

It is important to take into consideration that every year tax payments in various communes are different. The notarial fees depend on transaction complexity, and the prices for notarial services can variate a lot. That is why the abovementioned numbers are indicated with the purpose of giving you a rough idea of how much it can cost to register real estate in Italy.

Only «prima casa» owners can have tax privileges (Registration tax 2% upon purchase, exemption from charges IMU and TASI – annual tax payments, we’ll discuss them here below), but you should not sell the real estate unit within 5 years in order to keep privileges. Should you sell the real estate unit within this period of time, you must buy a new property within one year.

To register «prima casa» real estate:

  1. The buyer should be a private person.
  2. The future owner should register at this real estate unit within 18 months upon signing the Act of Purchase and Sale.
  3. Any citizen with EU passport or residence permit in Italy can register at the property. It means that if you don’t have EU passport or residence permit in Italy, you can register «prima casa» real estate, but you must obtain residence permit in Italy within 18 months (IT IS EXTREMELY IMPORTANT, as in case of failure to register within the indicated period of time, you will have to pay the penalty at the amount of the tax rate + 30% + additional %).
  4. The real estate unit should not be from deluxe category, i.e. it should not be described as category A/1 (prestigious property), A/8 (villas), A/9 (castles). The property belongs to these categories in the following cases: if the total area of the apartment is more than 240 sq.m, that of the villa – more than 400 sq.m., the private pool area is more than 80 sq.m.; the tennis court area is more than 650 sq.m., there is an elevator in a private house, etc.) We can consult you in every single case and provide with information, if the real estate unit being chosen belongs to deluxe category.


When buying the real estate unit from deluxe category, VAT is 22% from the actual value indicated in the Act of Purchase and Sale.  

Should the buyer be a legal entity, VAT at the rate of Seconda Casa will be paid upon purchase.  

Annual tax payments


Annual tax payments include IMU, TASI and TARI.

IMU (Imposta Minicipale Unica) is a tax levied on tenancy in Italy; it is calculated from the cadaster value of the real estate unit. All owners of commercial and private property, residents and nonresidents, must pay this tax. The rate fall in the range 0,4-0,7% calculated from the cadaster value and established by the commune of every region.
The tax is paid once a year in June or twice a year in June and December.

TASI is a municipal tax covering expenses related to public lighting and illumination, road maintenance, cleaning of streets, etc.
The rate is calculated based on the total area of the property and a number of people registered at the property.
In case of long-term lease, a part of this tax (10-30%) can be charged for a tenant.
The tax is paid twice a year in June and December

TARI is a rubbish removal tax.
The tax is calculated based on property category and a number of people registered at the property and residing in it  on a permanent basis.
In case of long-term lease, this tax is levied on a tenant.
The tax is paid once a year in December.

Property insurance in Italy is not required, but it is mandatory when a person takes out a mortgage to buy property.
Besides, a condominium of each separate house has the right to include obligatory insurance into a list of house regulations.