Before purchasing any property, it is very important to be aware of the impact of taxation at purchase, on property and on the income generated. I made this brief guide to explain the main taxes to be paid

The impact of taxation at purchase varies whether the seller is a company or a private individual, and whether the buyer elects the property as his/her main residency.
In case the residential property is purchased from a private individual and the buyer elects the property as his/her main residence, the following taxes are due:

  • Imposta di registro € 50
  • Imposta ipotecaria € 50
  • Imposta catastale € 50

The purchase is VAT exempt.
If the the residential property purchased cannot be elected as main residency, the same taxes apply, but in different amounts:

  • Imposta di registro 9% of the value
  • Imposta ipotecaria € 50
  • Imposta catastale € 50

This purchase is also VAT exempt.

If the residential property will be elected as main residency, the taxes due are as follows:

  • VAT 4%
  • Imposta di registro € 50
  • Imposta ipotecaria € 50
  • Imposta catastale € 50

The VAT is then augmented if the the residential property purchased cannot be elected as main residency, the same taxes apply, but in different amounts:

  • VAT 10% (22% for luxury properties)
  • Imposta di registro € 200
  • Imposta ipotecaria € 200
  • Imposta catastale € 200

In Italy any residential property can be transferred only via a notary act, thus the buyer has to pay the notary fees that can vary depending on the notary chosen. Non residential properties (up to € 100,000) can be sold through an Avvocato or a Dottore Commercialista.


The taxes due at possession are mainly:

  • IMU
  • TASI
  • TARI

IMU shall be paid on any property (residential or not) every year, main residency residential property are exempt from that.
TASI is paid on general services performed by the Comune, and some Comune can decide to exempt it.
Finally, TARI is the tax due on the trash collection.
IMU and TASI must be self assessed, while TARI is calculated by the Comune and sent to your address via mail.


Taxes on rental are self-assessed in the annual return to be filed before September 30th of the following tax year.
Residential property allow two taxation option:

  • Cedolare secca

The IRPEF regime taxes the rent based on the normal brackets, allowing a 5% deduction (i.e. if your rental income in 2016 was € 12,000, you pay taxes on €11,400).
Furthermore, these contracts should pay the Imposta di bollo and Imposta di registro at the contract registration, and a yearly 2% Imposta di registro.
The Cedolare Secca tax regime is optional and shall be indicated and signed in the lease contract; this regime allows a flat 21% tax on rental income (deducted to 10% in some areas for “Canone Concordato”).
This tax regime is free of any tax at registration, can be applied only to residential properties, but disallows any tax deduction while filing taxes.


If you decide to buy a property in Italy, I strongly suggest to get your Codice Fiscale first (click here to read about that).
In order to benefit the “Prima Casa” tax regime, you have to set your main residency in the Comune where the house is purchased and avoid to sell it within 5 years of the purchase (otherwise further taxes and penalties apply).

3 thoughts on “PROPERTY TAXES”

  1. Oh, my! Your detailed explanation on how even rental properties could be subjected to some kind of taxes was absolutely riveting. My husband and I haven’t spent our time at our private beach house for quite some time now, and we’ve decided to just rent it out this summer. I’ll keep this info in mind so we can make further arrangement later.

  2. Dear Nicolo

    I bought a residential property in Villa Santa Maria (CH) in late 2021 and finished our work on the property in September ‘22.

    The building has 3 floors – a ground floor which was previously a shop and a garage, the main house with a separate entrance on the 2 upper floors and a Cantina on the floor above the ground floor (which has a separate 3rd entrance).

    So now the property has a ground floor apartment with a bedroom and a living space + bathroom) , a main apartment with 2 bedrooms, 2 bathrooms, 2 (small) living rooms and a full kitchen and a 3rd Cantina apartment with just a bedroom and a bathroom.

    My wife and I live most of the year in Jerusalem (where I have an accountant who does my tax for Israel and for the U.K. where I have pension income).

    Starting August ‘23 I will have about 1,000 € income from Airbnb renting just the 2 small apartments (we will NOT rent the main house).

    We hope to have more income in 2024 but I think it will be between 1,500€ and 5,000.€ (if we are very lucky).

    Can you please advise me on what I need to do to satisfy the Italian Tax Authority ? I am a U.K. retired Chartered Accountant so hopefully I can easily keep the necessary records if you tell me what I need to do.

    Shall we have a video meeting (which I understand I need to pay for) ?

    1. does the agent/intermediary deducts/withholds tax? If not, you must file an annual income tax return, as well as paying bi-annualy the IMU (property tax)

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