Taxes due on a real estate purchase in Italy vary depending on several factors, including the nature of the seller (private individual or company), the type of property, and whether the “first home” benefits apply.
Purchasing from a Private Seller
- First Home:
- Registration Tax: 2% of the cadastral value of the property, with a minimum of €1,000.
- Mortgage Tax: €50.
- Cadastral Tax: €50.
- Second Home:
- Registration Tax: 9% of the cadastral value, with a minimum of €1,000.
- Mortgage Tax: €50.
- Cadastral Tax: €50.
Purchasing from a Company
- Subject to VAT (within five years of construction or renovation):
- First Home:
- VAT: 4% of the sale price.
- Registration Tax: €200.
- Mortgage Tax: €200.
- Cadastral Tax: €200.
- Second Home:
- VAT: 10% of the sale price.
- Registration Tax: €200.
- Mortgage Tax: €200.
- Cadastral Tax: €200.
- First Home:
- Exempt from VAT (after five years from construction or renovation):
- First Home:
- Registration Tax: 2% of the cadastral value, with a minimum of €1,000.
- Mortgage Tax: €50.
- Cadastral Tax: €50.
- Second Home:
- Registration Tax: 9% of the cadastral value, with a minimum of €1,000.
- Mortgage Tax: €50.
- Cadastral Tax: €50.
- First Home:
Key Considerations
- Registration, mortgage, and cadastral taxes are generally paid through the notary at the time of registering the deed.
- The “price-value” system allows, under certain conditions, the registration tax to be calculated based on the cadastral value of the property rather than the sale price, ensuring greater transparency and fairness.
- “First home” benefits also apply to appurtenances of the residence, such as cellars and garages, provided they are classified under cadastral categories C/2, C/6, and C/7.
- In the event of resale within five years of purchase, a tax on the capital gain may be due, except for cases outlined by law.