Buying a property as your main residence (when the seller is a private individual)
If you are buying a property in Italy with the intention of applying for residency within 18 months of purchase, you are entitled to a tax incentive, paying 2%, instead of the usual 9%, of the valore catastale (unless the property is classified as a luxury property and in this case the tax is 9%) This tax is called the "Imposta di Registro", or registration tax. In addition, there are 2 small taxes of 50 euros each to pay – imposte ipotecarie and catastali – which are a mortgage tax and stamp duty.
Buying a property as a second home or holiday home(when the seller is a private individual)
If you are buying a property, but will not be making it your main residence within 18 months, you will pay the 9% tax rate on the valore catastale. In addition, you will pay the 2 small taxes of 50 euros, for stamp duty and mortgage tax.
NB. If you declare that you will become resident within 18 months of the purchase, but don’t do so, you will be liable to pay the difference in the 2% and 9% tax, plus a fine of 20% of this amount. The tax office has 5 years in which to ask for this money, from the date of the purchase.
Buying a property from a developer or constructor(when the property has been completed within 5 years of the purchase)
As your main residence – you pay 4% of the purchase price, plus 200 euros registration tax, 200 euros mortgage tax and 200 euros stamp duty.
As a second home – you pay 10% of the purchase price (unless the property is classified as a luxury property, in which case you pay 22% of the purchase price).
Plus, you pay 200 euros registration tax, 200 euros mortgage tax and 200 euros stamp duty.
If you buy a property from a developer or constructor, but the property has been completed more than 5 years ago, the taxes are calculated in the same way as for a private individual.
The tax for agricultural land is 12% of the declared value of the land. However, if the land surrounds the property, it is possible to pay the tax on the tax value of the land, in the same way as the house.
A note from us - as soon as you have decided on the property that you wish to buy, we will obtain a quote for you from the notary, including all the taxes.