Costs and taxes

The real costs of buying property in Italy (2026 guide)

Updated October 2026 · 6 min read

As a rule of thumb, budget roughly 5–10% on top of the price for a resale home bought through a real estate agency. Buying new from a developer costs more, because VAT of 10% (22% for luxury categories) is charged on the full price. The exact figure depends on the cadastral value, the real estate agency commission, your notary and any mortgage.

This guide is general information, not tax advice.

Two kinds of purchase, two tax systems

Italian purchase taxes depend first on who sells. A private seller means registration tax. A developer or building company selling a new home usually means VAT instead.

Then it depends on whether you qualify for "prima casa" (first-home) relief. Most foreign buyers of a second home in Rome or Milan pay the standard rates.

Buying from a private seller

When the seller is a private individual, you pay three taxes:

Registration tax: 9% for a second home, 2% with "prima casa" relief. The minimum is €1,000 in both cases.
Mortgage tax: fixed €50.
Cadastral tax: fixed €50.

The key point is what the 9% or 2% is charged on. Thanks to the "prezzo-valore" rule, it is usually the cadastral value, not the price you pay.

The "prezzo-valore" rule

The cadastral value comes from the "rendita catastale" (cadastral income) shown on the property's land-registry record. For a second home it is rendita × 1.05 × 120; for a "prima casa" it is rendita × 1.05 × 110.

The rule applies when the buyer is a private person (not acting in business) and the home is residential. It also covers appurtenances such as a garage or cellar. You must ask for it in the deed, and the real price must still be stated.

It does not apply to VAT sales from developers. Those are always taxed on the actual price. Under prezzo-valore, the notary's fee is also reduced by 30%.

A worked illustration. Say the land-registry record shows a rendita of R euros. For a second home, the tax base is R × 126, so registration tax is about 11.34 × R. Ask the notary to run this with the real rendita before you sign anything.

"Prima casa" relief: the conditions

The 2% rate (or 4% VAT on new homes) needs all of these:

Category: the home is not in cadastral category A/1, A/8 or A/9 (the "luxury" categories).
Residence: you live in the municipality, or move your residence there within 18 months. Working there can also qualify.
No other home in the same municipality.
No other "prima casa" home in Italy, unless you sell it within one year.

Italian citizens living abroad can claim it anywhere in Italy, if it is their first home in Italy. Breaking a condition means paying the taxes saved, plus interest and a 30% penalty.

Buying new from a developer

When the seller is a developer and the sale is subject to VAT, you pay:

VAT: 10% as standard, 4% with "prima casa" relief, 22% for categories A/1, A/8 and A/9.
Registration, mortgage and cadastral taxes: €200 each, so €600 in total.

VAT is charged on the price in the deed. On a high-end new home this is the single biggest extra cost.

Notary fees

In Italy the buyer chooses the notary and, unless agreed otherwise, pays the notary. Fees have been freely negotiable since 2012, and VAT at 22% is added.

Ask two or three notaries for a written quote. It should separate the notary's fee from the taxes they collect for the State.

Real estate agency commission

In Italy the buyer usually pays a commission too, not just the seller. It is typically 2–4% of the price, plus 22% VAT. It is not fixed by law and can be negotiated.

Keep in mind that the real estate agency earns a percentage of the price. So it has no interest in negotiating it down for you.

Interpreter, translations and technical checks

The notary must be sure you understand the deed. If you do not speak Italian, budget for an interpreter and a translated deed. Ask the notary what they require.

Before signing, check that the home matches its planning permits and land-registry records. Fixing a mismatch after the deed is your problem, and can delay a resale. A surveyor or architect usually does this check for a fee.

Mortgage costs

If you borrow, the bank applies a substitute tax ("imposta sostitutiva") on the amount lent. It is 0.25% for a "prima casa" and 2% for a second home. The bank withholds it from the loan at signing.

Add the bank's own costs, such as arrangement and valuation fees, and the notary's fee for the mortgage deed. Ask the bank for its full cost sheet in writing.

One-off costs at a glance

Cost	Resale from a private seller	New from a developer (VAT sale)
Registration tax	9% (2% "prima casa") on cadastral value, min €1,000	€200
Mortgage tax	€50	€200
Cadastral tax	€50	€200
VAT on price	None	10% (4% "prima casa", 22% for A/1, A/8, A/9)
Notary fees	Negotiable, + 22% VAT; 30% lower under prezzo-valore	Negotiable, + 22% VAT
Real estate agency commission	Typically 2–4% + 22% VAT	Ask whether one applies
Interpreter and translations	If you do not speak Italian	If you do not speak Italian
Technical checks	Surveyor or architect fee	Surveyor or architect fee
Mortgage substitute tax	0.25% "prima casa" / 2% other, on the loan	Same

Yearly running costs

IMU (municipal property tax). You pay it on second homes, and on a main home only if it is in category A/1, A/8 or A/9. The tax base is rendita × 1.05 × 160. It is paid in two instalments, by 16 June and 16 December.

The rate is set each year by the city council, and the standard maximum for second homes is around 1.06%, with a few large cities allowed slightly more. As a rough guide, IMU on a second home works out at about 1.8–1.9 times the home's cadastral income (rendita) a year. Check the current resolution of Rome or Milan, or ask the notary, before you budget.

TARI (waste tax). Every occupied home pays it to the municipality. The bill depends mainly on the floor area and the number of occupants.

Condominium fees. Most homes in Rome and Milan are in a condominium. Ask the seller for the last two years' accounts and any approved extraordinary works. Unpaid works can become a dispute with the condominium after you buy.

Utilities. Electricity, gas, water and internet are on top. Ask for recent bills to see the real consumption.

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Sources

Figures as of October 2026; confirm final amounts with the notary.