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Hidden expenses of property purchase in Italy

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When you become an owner of real estate in Italy after happiness comes a sad realization that this is not the end. Just like in many other countries, taxes are waiting for you even in Italy. But are they that big to be scared of? How many fees yo must be aware of? All about taxes in our new article.

Property purchase tax

The amount of taxes when buying real estate depends on the type of property (primary/secondary), status of the buyer (resident/non-resident) and number of properties in his possession.

  • Purchase of first* property from an individual (not luxury real estate) for residents of Italy:
    • Registry tax (Imposta di Registro) - 2%
    • Cadastral and mortgage tax (Imposta Ipotecaria e Catastale) = €50 + €50

* secondary real estate; real estate from the developer in a building of 5 years or less or sold by another legal entity

  • Purchase of first property from a legal entity for residents of Italy:
    • Registry tax (Imposta di Registro) = €200
    • Cadastral and mortgage tax (Imposta Ipotecaria e Catastale) = €200 + €200
    • VAT (IVA) - 4%
  • Purchase of property from an individual for non-residents or second property for residents of Italy:
    • Registry tax (Imposta di Registro) = 9%
    • Cadastral and mortgage tax (Imposta Ipotecaria e Catastale) = €50 + €50
  • Purchase of property from a legal entity for non-residents or second property for residents of Italy:
    • Registry tax (Imposta di Registro) = €200
    • Cadastral and mortgage tax (Imposta Ipotecaria e Catastale) = €200 euros + €200
    • VAT (IVA) – 10% (22% - luxury housing).

Please note! Taxes are much higher for non-residents. But all foreigners have the opportunity to use tax benefits.

You can use benefits in case of three following conditions: 

  • The property is not classified as luxury.
  • You did not buy another Italian property using tax benefits (the "first property" requirement).
  • You must register you place of residence at the address of the property within 18 months from the date of purchase. If you are not a resident of the EU, you will need to obtain a residence permit and register on the address to get the benefit. 

If you use the benefit, but don’t get a residence permit and don’t register in 18 months, then in the future you will have to pay the difference from tax rates, as well as a fine of 30%.

Please note! When buying real estate in the secondary market, the 9% tax is charged not from the market cost, but from the cadastral value, and it is often quite low. For example, the cadastral valuation of a luxury villa for €3 000 000 may be only €500 000, so taxes will be lower than it seems at first glimpse. In the primary market, VAT is calculated from the market cost of the property.

Residential Property In Italy
Apartment for 445 000 euro in Santa Margherita Ligure, Italy
445 000 €
Apartment in Santa Margherita Ligure, Italy
85 sq.m 4 3 1
Spacious bright 3 bedroom apartment 85 sq.m. three minutes walk from the sea. Located in the prestigious area of Santa Margarita Ligure, next to the famous Portofino. Two bedrooms, living room and kitchen, one bathroom, three balconies with double exposure (east west). Individual heating and air conditioning system. Everything you need is within...
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Apartment for 480 000 euro in Arezzo, Italy
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Charming 156 sqm apartment in the historic centre of Arezzo, with a total of 2 bedrooms, a bathroom and a delightful rooftop. In one of the main streets of the historic centre of Arezzo, on the second floor of a historic building, we find for sale this beautiful apartment, completely renovated in 2017 using a rough luxe style that makes it...
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Apartment for 265 000 euro in Cortona, Italy
265 000 €
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A very cosy flat and part of an old monastery that in 2005 was converted into a residence of some 30 flats, plus a park and communal swimming pool. It is located in a very prestigious area and only 4 km from Cortona in a very quiet location but close to amenities. The flat is in excellent condition and furnished in typical Tuscan style. It is...
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Apartment for 224 000 euro in Spoleto, Italy
224 000 €
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Attic of an elegant building overlooking the center of Corso Mazzini, famous for being the location of one of the first hotel-restaurants in Spoleto: the "Grand Hotel Tordelli." A luxury hotel, with underfloor heating, with the residual apparatus of the Roman baths, intended to host the nobles and their entourage. The Tordellis were...
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Apartment for 150 000 euro in Chiusi, Italy
150 000 €
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126 sq.m 8 3 2
Apartment on the upper floors of a beautiful building from the early 1900's in the historic center of the magnificent Etruscan town on the border with Umbria. The apartment is spread over the entire third floor and part of the attics. From every window we have a beautiful view of the surrounding houses, the park and an incredible view towards...
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Apartment for 350 000 euro in Castiglione del Lago, Italy
350 000 €
Apartment in Castiglione del Lago, Italy
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100 sqm panoramic appartment on the first floor of a delightful compendium in Castiglione del Lago, with a total of 3 bedrooms, 2 bathrooms, 2 gardens for exclusive use for a total of 128 sqm, shared pool and 2 parking spaces for exclusive use. Among the rolling hills of Castiglione del Lago, with a view of Lake Chiusi and Lake Trasimeno, we...
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Apartment for 295 000 euro in Montepulciano, Italy
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Apartment in Montepulciano, Italy
186 sq.m 9 2 2
In the famous historic center of Montepulciano we find this wonderful apartment with a small terrace overlooking the streets of the center and a further terrace on the top floor with a panoramic view of Lake Trasimeno. The apartment is spread over 4 floors. On the first floor we find the entrance overlooking one of the streets in the centre. The...
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Townhouse for 3 500 000 euro in Panicale, Italy
3 500 000 €
Townhouse in Panicale, Italy
3066 sq.m 34 30 33
The property is made up of the ancient Renaissance palace which measures approximately 1,950 sqm where we find in the basement (101 sqm) a professional kitchen, changing rooms and bathrooms for the staff; on the ground floor (637 sqm) the reception, the bar, the large restaurant room and two smaller ones for a total of about 200 seats; on the...
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Apartment for 290 000 euro in Chiusi, Italy
290 000 €
Apartment in Chiusi, Italy
227 sq.m 6 2 1
Apartment in the historic center "The secret garden" - In the heart of the historic center of Chiusi, a town of Etruscan origin located in the province of Siena, this prestigious apartment with an independent entrance of a total area of ​​about 190 sqm is for sale on two levels, in addition to the presence of a cellar on the ground floor and a...
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Apartment for 580 000 euro in Panicale, Italy
580 000 €
Apartment in Panicale, Italy
330 sq.m 10 4 3
This townhouse is located just outside the walls of the small characteristic village of Panicale and is made up of 2 floors. The property includes a characteristic attic. Entering the gate, you cross a small courtyard arriving at an arched staircase. On the ground floor is the large kitchen with access to the front courtyard and with a cellar...
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Apartment for 330 000 euro in Bevagna, Italy
330 000 €
Apartment in Bevagna, Italy
381 sq.m 8 2 1
The apartment is accessible by entering through the wooden door on the ground floor. You enter a hallway with eighteenth-century stone stairs, to get to the landing on the first floor. Currently the conformation of the apartment includes 2 large double bedrooms, a dining room, a study with a small terrace, two lounges and a small room, as well...
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Apartment for 480 000 euro in Monte Argentario, Italy
480 000 €
Apartment in Monte Argentario, Italy
121 sq.m 5 2 2
La Rocca apartment, about 121 sqm, is located inside the Spanish fortress of Porto Ercole, for lovers of the sea, history, unique and rare objects, for those who want to be amazed and want to amaze. On the ground floor (about 90 sqm) there is a magnificent living room with a large stone fireplace, a double bedroom, a bathroom with tub, and a...
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Apartment for 400 000 euro in Montepulciano, Italy
400 000 €
Apartment in Montepulciano, Italy
275 sq.m 12 5 2
Charming and bright apartment of 275 sqm in the historical centre of Montepulciano (SI), with a wonderful view over the historical village, with a total of 5 bedrooms and 2 bathrooms. In the center of the famous village of Montepulciano, for sale this bright apartment of approximately 275 sq.m., accessible both from the main street and from the...
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Apartment for 185 000 euro in Castiglione del Lago, Italy
185 000 €
Apartment in Castiglione del Lago, Italy
198 sq.m 6 2 3
The building is located in one of the main streets of the historic center of Castiglione del Lago and is spread over 4 levels for approximately 50 sqm per floor for a total of approximately 200 sqm. On the ground floor there are two rooms that can be used as funds or a small garage, while the first, second and third floors each consist of two...
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Apartment for 175 000 euro in Monteleone d'Orvieto, Italy
175 000 €
Apartment in Monteleone d'Orvieto, Italy
132 sq.m 6 2 2
Elegant three-floor apartment is situated in the heart of the historical center of Monteleone d'Orvieto. It was recently restored, preserving the original characteristics of the building that add a special charm to the property. On the ground floor, there is a kitchen and a bathroom, the staircase leads to the living area with a fireplace and a...
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Apartment for 980 000 euro in Monte Argentario, Italy
980 000 €
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153 sq.m 6 3 2
Sea view apartment located within the prestigious and renowned Olivastri di Cala Moresca. Porto Santo Stefano, residence with swimming pool and custodian. This large and spacious apartment is laid out on the ground floor level with direct access to its own private garden with terraces, all enjoying spectacular sea views towards the islands of...
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Apartment for 330 000 euro in Italy
330 000 €
Apartment in Italy
115 sq.m 5 1 2
Exclusive Apartment for sale in Tuscany – The Luxury #8 - I Girasoli is a prestigious apartment in the elegant residential complex of exclusive design that combines the Tuscan style and cosmopolitan spirit. Fifteen apartments, the parts of residential complex, are furnished with taste and elegance; have large windows overlooking the hills of...
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Apartment for 240 000 euro in Spoleto, Italy
240 000 €
Apartment in Spoleto, Italy
122 sq.m 6 3 3
In the historical heart, in one of the characteristic streets of the ducal city of Spoleto, on the second floor of a beautiful stately building with an internal courtyard, there is a flat of about 110 sq m. from whose terrace one can watch the pulsating tourist life. In the living area there is a beautiful living room and a kitchen, both with...
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Apartment for 320 000 euro in Citta della Pieve, Italy
320 000 €
Apartment in Citta della Pieve, Italy
140 sq.m 7 2 1
Historical town house in Umbria in Città della Pieve - "Lo scorcio sulla torre del Beato". The house is on 5 levels and internally arranged as follows: on the lower ground floor there is an ancient cave in the tuff. On the ground floor, an entrance hall, a tavern with a kitchenette, a storage room. On the first floor, there is a kitchen, a...
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Apartment for 195 000 euro in Spoleto, Italy
195 000 €
Apartment in Spoleto, Italy
72 sq.m 4 2 1
Luxury apartment for sale in Spoleto, Il Mercato. Second floor apartment with terrace and completely renovated cellar in the Piazza del Mercato area. The building is served by a lift. Energy class E and F. The property consists of a small living room, kitchen with terrace, two bedrooms and bathroom. All furniture is included in the price. The...
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Broker’s fee

According to the Italian law, if ations of a certified realtor has led to a successful deal, they have a right to take free both from a buyer and a seller. However, the law doesn’t regulate the amount of commission, you have to discuss it with the agent. The rates are 3-5% +VAT on average. If several companies participate in the deal, they divide the commission among themselves.

Notary fee + Register fee

In Italy you transfer the entire cost to the notary. The notary themself calculates and pays property purchase, state fees for registration and their own fee.

The notary's fee depends on the cost of the property. The larger transaction amount is, the lower the percentage. As a rule, the cost of services ranges from 1% to 3.5%, including the cost of registration.

Also read: The Rules of Buying Italian Property for Foreigners

Connecting utilities (only for new buildings)

You have to pay for connection of utility networks, when purchase an apartment in a new building. The price depends on location. Usually, it’s about €2000.

The interpreter's fee

According to the Italian law, you as a foreign buyer have need an interpreter at the final conclusion. It can be anyone who speaks Italian and your native language fluently. This service can also be included in the final fee of your agent, if they speak your native language as well. Such service costs additionally a few hundred euros.

 

Quoting conditions of Prian.info materials

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