Taxes and Costs of Buying a Home in Italy

When you buy a home in Italy, taxes, the notary's fee and the agency commission come on top of the price. How much you pay depends mainly on two things: who is selling (a private person or a company) and whether the home will be your main residence (prima casa) or a second home. These rules come from Italian law and apply to every buyer, whatever their nationality. Do not assume that the taxes you know from home apply here.

1. Buying from a private seller: registration tax
When the seller is a private person (or a company selling without VAT), you pay registration tax (imposta di registro):

• second home: 9%;
• main residence: 2%;
• minimum €1,000 in both cases;
• plus mortgage and cadastral taxes of €50 each.

2. The cadastral value rule (prezzo-valore)
If the buyer is a private individual and asks for it in the deed, registration tax is calculated on the cadastral value, not on the price (art. 1(497), Law 266/2005). The cadastral value comes from the property's cadastral income (rendita catastale), increased by 5% and multiplied by 110 for a main residence and by 120 for other homes. It is almost always much lower than the price, so the tax falls sharply. The real price must still be stated in the deed.

3. Buying from a company with VAT
If you buy from a developer or renovation company selling with VAT:

• 10% VAT, or 22% for luxury homes (cadastral categories A/1, A/8, A/9);
• 4% VAT for a main residence;
• plus registration, mortgage and cadastral taxes of €200 each.

Here tax is paid on the price, not on the cadastral value.

4. Main residence relief: who qualifies
The reduced rates (2% or 4% VAT) apply if the home is not a luxury property, the buyer has or takes up residence in that municipality within 18 months, and does not already own a home there or one bought with the same relief in Italy (unless it is sold within 2 years, for purchases from 2025). If the conditions are not met, the tax difference is due, plus a 30% penalty and interest.
If you live abroad and do not move your residence to Italy, the purchase counts as a second home.

5. Notary and agency

• Notary (notaio): there is no fixed legal tariff; ask for a written quote before completion. The buyer usually chooses and pays the notary, who is a neutral public official, not a lawyer acting for you.
• Agency: the commission is the one agreed in writing, plus 22% VAT. The deed must state the amount paid to the agency (art. 35(22), Decree-Law 223/2006).

6. Buying with a mortgage
An Italian mortgage carries a substitute tax of 0.25% of the loan for a main residence and 2% for other homes, usually plus the bank's valuation and the notary's fee for the mortgage deed.

7. After the purchase

• IMU: annual property tax on second homes, at a rate set by the municipality (Law 160/2019).
• TARI (waste tax) and utilities.

In short
For a second home bought from a private seller under the cadastral value rule, taxes are usually a small share of the price. To calculate them for a specific home you need its cadastral income, shown in the land registry extract (visura).

We help you work out the numbers
Aquamarina Real Estate has assisted international buyers in Sanremo, Bordighera and across the Riviera di Ponente since 2003. Before you make an offer, we tell you what the purchase of the home you like will cost in total.
Email info@aquamarina.email or call +39 0184 26.16.87. Offices in Sanremo, Via Roma 32, and Bordighera, Via Vittorio Emanuele 302.

Read also: Buying a Home in Liguria from Abroad · Building Compliance When Buying in Liguria · Properties for sale

Want the full guide?
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Plus, if you wish, a free 15-minute phone or video call with one of our experts.

This guide is for information only and does not replace advice from a notary or tax adviser.