Buying in Italy Taxes and Fees by Davide Mengoli

What property taxes do you have to pay in Italy?
There are four basic property taxes that you have to pay when you buy a house in Italy:
1. Land Registry tax (imposta ipotecaria)
2. Cadastral tax (imposta catastale)
3. Stamp Duty (imposta di registro)
4. VAT and other expenses
The amount of tax you have to pay on Italian property purchases may depend on a number of factors, such as who you buy it from and whether you are buying it to be your main residence from that point on or whether it will be a second home/holiday home. Here we break down each of the main taxes to be paid on the purchase of Italian homes, including how to calculate how much tax to pay and who has to pay it.
1. Land Registry tax
The imposta ipotecaria, as it is known in Italian, is an obligatory tax that is worked out based on the cadastral value of the property as it is written down in the deed of sale, the rogito. If you buy your new Italian house from a private seller or trader who is not VAT registered, there will be a flat rate tax for the Land Registration of 50 euro. However, if the seller is a company that is VAT registered with the Italian government, the property tax rate will be 200 euro.
2. Cadastral tax
The imposta catastale tax in Italy is similar to the Land Registry tax in that the amount to be paid (the base imponibile) is also based on the cadastral information in the property deed. Just like the previous tax, it is also fixed at 50 euro on purchase transactions from unregistered sellers and 200 euro when buying from registered vendors.
3. Italian Stamp Duty
The rules for working out how much imposta di registro Stamp Duty you have to pay when buying property in Italy is slightly more complicated. When you buy a house in Italy from a VAT registered entity, the Stamp Duty will always be a 200-euro flat rate.
However, if you are buying a new house in Italy from an unregistered individual or company to be your permanent residence, Stamp Duty will be 2% of the property value. If you intend to use the property as a second home in Italy, the amount of Stamp Duty will be 9% of the listed value of the property. In both cases, the minimum payment is 1,000 euro.
It should be noted that properties classified as luxury homes or castles in cadastral category A/9 have a higher tax rate.
4. VAT on Italian property purchases
For property in Italy, Value Added Tax (known by the abbreviation IVA in Italian, for imposta sul valore aggiunto) is worked out as a percentage of the price of the property. VAT is not levied on properties bought from private sellers who are not VAT registered, and is only applied to property purchases from developers, promoters and renovation companies if you buy less than 4 years after the building/refurbishing work is complete.
For main residences bought from a registered entity, VAT is 4%. For second homes, VAT in Italy is set at 10% for the majority of homes, and 20% for those properties classed in tax categories A/1, A/8 and A/9 for luxury and stately homes.

[@BlueSuedeShoesDance]

This is the most comprehensive reporting on fees for purchasing property in Italy thank you so much. It's good to know what other costs to factor in upfront.

[@salentowithlove3314]

BlueSuedeShoesDance thank you, I’m pleased to hear that the informations are clear and valuable. I have done many acquisitions here in Italy and other parts of the world, happy to share my knowhow.

[@vaniamarino8953]

Thank you so much Davide, very clear and important info.

[@salentowithlove3314]

Hi Vania, many thanks! I often re-listen to myself and I think, what was that about!

[@Woods_palma]

Thank you so much Davide! You’re information and positive air have made beginning this process of purchasing in Salento more enjoyable and exciting :-)

[@salentowithlove3314]

Hi Timothy, I’m so pleased to hear that!! Please don’t hesitate to reach out to us if you need any help or advise in regards to your future plans.

[@_Root_Beer]

Very interesting. Always good to know the facts first

[@salentowithlove3314]

So many people venture into buying a property abroad without consulting an expert.

[@mommasodek7687]

Very good info Davide!

[@salentowithlove3314]

Thank you Momma. Are you familiar with Salento?

[@emmaproctor5863]

very informative, thank you Davide

[@salentowithlove3314]

Thank you Emma, happy to answer any question you may have.

[@giuseppetripodi2299]

Grazie mr mentoli , informazioni molto interessanti. a fine ottobre scendo giù in Sicilia a comprare una propieta. Di sicuro mi servirà il suo aiuto.

[@salentowithlove3314]

Sono a completa disposizione, sia io che la nostra squadra legale specializzata in acquisizioni 🙏

[@nosaodeh3137]

very interesting thank you for this information

[@salentowithlove3314]

My pleasure 🙏💫

[@faramarzmokri9136]

Thank you for the details. That is very helpful. How about the yearly property taxes . Is the 2% or 10% one time deal as long as you own the property?

[@danecaldwell9470]

In Canada it’s called a Land Transfer tax. It’s a percentage of the purchase price, not the value registered with the land registry. The percentage is determined by the municipality the property is situated in. Lol In Canada, it hasn’t been anywhere close to 2% in decades! Excellent video. Thank you for making this information available to us!

[@salentowithlove3314]

Please don’t hesitate to reach out to me personally if you need any additional info.

[@renatosureal]

just another gov't money grab in Canada, this and property tax which is around 1.5% of the MPAC assessed value, paid annually. It is a family income killer !

[@edwhitby7302]

Thanks, very informative. Can you say how would you find out what the land registry value (valore catastale) is for a particular property address?

[@salentowithlove3314]

Hi Ed, you need access to the ‘’ Scheda Catastale’’ from there you need two details in order to calculate your property tax. Categoria and Rendita, with these two pieces of information, you can simply use one of the free online portals to calculate the amount payable. This link should be useful to calculate the right amount: www.catastoinrete.it/calcolo-valore-catastale.asp?gclid=EAIaIQobChMIh6-ExrG26wIVCd-yCh3m3gEzEAAYASAAEgLBZfD_BwE

[@jojotamayoayo1709]

Thank you Davide, you explained the discussed fee processes very well>>>>>>! Is there also an agency fee or commission when sales are transacted? each buyers agent & sellers agent and agencies all get a cut as you probably know here in the us.

[@salentowithlove3314]

Hi Jojo, thanks for following the channel! When purchasing in italy the buyers pays 3% of the purchasing price or a minimum of 3k common practice all over italy.

[@annmariez9596]

Excellent video! Very clearly explained. If you have dual Italian/American citizenship with a home in America, do you automatically pay the 9%?

[@salentowithlove3314]

Automatically is a big word here in Italy 😊 If you’re not a resident you would automatically pay 9% even if you have double citizenship. You have 18 months to register your residence in Italy and benefit from a lower property tax percentage. But don’t be put off by the big percentage number, in majority of the cases the cadastral value is extremely low in comparison to the sell price.

[@zucicciu58]

Thank you for the explanation - very informative. Two questions: 1. Is this a one-time tax at purchase, or is this a periodic (yearly?) tax? 2. Does a home of a retired expat on an Elective Residents Visa (non-EU citizen) qualify as primary residence, regardless of properties owned elsewhere (e.g., USA)?

[@salentowithlove3314]

Hi there, thank you for reaching out to us with your additional questions. 1st question: this is a one-time tax that you pay at the time of purchase ‘’Imposta di registro’’. 2nd question: Yes, you do qualify. Plus, you have 18 months from the moment of purchase to register your residency.

[@yoanagancheva1179]

Hi, i am planning to buy a villa in Puglia (Ostuni Coast) as mainly a summer residence. I am working (mainly from home) in Germany and pay my income taxes there. Is it still possible to pay the 2 % and have both residence in Italy and Germany or not? Also i would like to know, do you know how high is the annual taxation for a property? Thanks very informative video.

[@emmaproctor5863]

I would also be interested to hear more about the taxes applicable to rental income on buy-to-let properties in Italy and any other relevant information for buyers who are looking at this aspect of investing in Italian property.

[@salentowithlove3314]

Hi Emma, I will cover this aspect very soon. I will probably do this Q&A together with a tax expert. Coming soon!

[@salentowithlove3314]

Hi Emma, let me know if my latest Q&A answered your question.

[@tesslapointe5120]

Are estate agent commissions negotiable? I am a realtor in the US and our commissions are negotiable. Thx. Love your videos.

[@salentowithlove3314]

Hi Chris, thank you for your kind comment! Everything is negotiable, but should be agreed prior to start the search or making an offer. Happy New Year D

[@santap9332]

What is the tax yearlybto pay? How mucu cost property as investment kept? Dows it cost nothing? Also are there agencys who can rent out my propeety without me being in country and take care of all hassles with tentant and how much would i need oay agency or how many would i need pay tax from monthlybincome from rent?

[@salentowithlove3314]

Hi Santa, difficult to answer your questions. If you would like to know mor e it would better tk arrange a consultation call

[@giuseppetripodi2299]

Mi scusi mr mengoli, ho messo il cognome sbagliato

[@PilotVBall]

In the USA we also pay 1.03% property tax each year based on the value of the house to our local county government. Is a similar annual property tax charged in Italy?

[@salentowithlove3314]

In Italy is called IMU. If you’re a resident and that represents your dwelling, you do not pay anything. If you’re not, then a calculation is made and you pay between 0.2 to 0.5 % of the value. I will explain in more details in weeks to come through a video.

[@francinemoloney2527]

Hi, The market value in the US that the taxes are based on is much lower than what the house would sell for. They may tax you on say $16,000 and you may sell it for $60,000 is Italy the same? What do they base it on? What if you buy a one euro house? How would that work? Caio Grazie Francesca Marino

[@salentowithlove3314]

Hi Francesca, In Italy the valore catastale or cadastral value is what counts. The valore catastale varies according to the category and size of the property. Once you find a property that you’re potentially interested in, you should get this two pieces of information in order to calculate the tax. Clearly explained in the q&a The links included in the description can be helpful. Stay safe

[@salentowithlove3314]

Hi Francesca, This latest q&a maybe a little clearer kzbin.info/www/bejne/d5-qXpeco7mhq6c In regards to the one euro, I don’t know. I guess they have some special rates. Not my line of expertise.

[@_Root_Beer]

Nice Panerai 👌🏻

[@salentowithlove3314]

Glad you recognize nice things PAM156

[@user-iz5ru6ff5c]

If I paid the 2%, but never became a resident. Will I get a bill for the other 7%?

[@salentowithlove3314]

You’ll get more than a bill for the difference, better if you get some legal advice

[@carolannhodgson5303]

Or 7% in areas under 20k?

[@salentowithlove3314]

Yes, the program still available

[@jasonrogers8140]

lol i thought he was in prison at first