On buying
Imposta di Registro, Imposta Ipotecaria, Imposta Catastale:
These are one-off taxes based on the property's "cadastral value". This value is determined by the Italian land registry, depends on factors such as location and floor space and is usually less than half the purchase price.
The level of tax depends on whether or not the buyer plans to live in Italy and is purchasing their first home there. Buyers falling into this category have up to 18 months after the purchase date to register as Italian residents.
Foreigners who live in Italy & are 1st time buyers |
All other foreigners |
|
| Imposta Di Registro (Registry tax) | 3% of cadastral value |
7% of cadastral value |
| Imposta Ipotecaria (Mortgage tax) | €168 |
2% |
| Imposta Catastale (Land Registry tax) | €168 |
1% |
Where property is bought directly from a company and is to be your principal residence, VAT at four per cent is payable, otherwise VAT is levied at 10 per cent. For agricultural property, taxes range from about eight to 15 per cent of cadastral value.
On signing the compromesso a registration fee is payable of €168 plus around €14 for each page of the document.
Estate agency: Usually the buyer and seller each pays between two and four per cent of the property price. It is important to stress that although The Property Organiser's fee comes out of the estate agency's commission, it has no effect whatsoever on the total sum you pay. That remains fixed at between two and four per cent whether or not you choose to use our services.
Surveyor: Will vary by property but expect to pay €600+.
Notary: Expect to pay €2,000-€5,000.
After you have bought the property, you will need to pay:
Imposta Comunale sugli Immobili (ICI): Community charge on all property and landowners. Depends on property size and is due twice a year.
Tassa Rifiuti Solidi Urbani (TARSU): Levied yearly for waste collection and depends on size and location of property.
On renting
The first €8,000 of rental income each year is tax-free. Thereafter, taxes range from 23 per cent to a top rate of 43 per cent on yearly rental income over €75,000.
On selling
Italy has neither inheritance nor wealth taxes and capital gains tax was abolished in 2002. If a property is sold more than five years after purchase, all proceeds are tax-free. If sold before then, however, the profit you make – ie, sale minus purchase price – incurs a 20 per cent plusvalenza tax.
