In Italy, all real estate transactions must go through a notary and are subject to taxes, which are always paid by the buyer. The total amount depends on who the seller is, the type of property being purchased, and whether the buyer qualifies for the Prima Casa (First Home) tax benefit.
Taxes are the same for everyone — regardless of nationality or residency — and the rates are fixed at the national level. Location or region does not affect the tax calculation.
What Affects the Tax Amount?
1. Seller Type: Private Individual vs Legal Entity
If you’re buying a buildable plot of land, the tax is based on the market value instead, and the Prima Casa benefit does not apply.
Note: The mortgage tax is required for all purchases in Italy — it is unrelated to whether the buyer takes out a loan and is instead used to verify whether any liens or encumbrances exist on the property.
Buying from a legal entity (e.g. a developer or construction company):
VAT (IVA): 10% of the purchase price
Registration tax: €200
Mortgage tax: €200
Cadastral tax: €200
2. Prima Casa Tax Incentive
The Prima Casa benefit allows buyers to significantly reduce taxes when purchasing property as their primary residence.
Requirements:
The buyer or their spouse must not own another property in Italy that was purchased using this benefit.
The property must be used as the buyer’s main residence.
The property must be classified as residential (not a garage, storage unit, land, etc.).
Good to know: If the buyer doesn’t have Italian residency yet but plans to obtain it, they can still apply for the Prima Casa benefit, as long as residency is obtained within 18 months of the purchase. Otherwise, the tax savings must be repaid along with a fine.
How it reduces taxes:
On resale properties: The registration tax is reduced to 2% of the cadastral value (minimum €1,000).
On new properties from a developer: VAT is reduced from 10% to 4%.
3. Property Category: Standard vs Luxury
Luxury properties — which fall under the cadastral categories A1 (historic homes), A8 (luxury villas), and A9 (castles, palaces) do not qualify for the Prima Casa benefit.
Taxes when buying a new luxury home from a developer:
VAT: 22% of the purchase price
Registration, cadastral, and mortgage taxes: €200 each
Whether a property is considered “luxury” depends on various criteria such as square footage, location, finishes, and amenities like swimming pools.
4. Buying Agricultural Land
For land classified as agricultural:
Registration tax: 15% of the market value
Cadastral and mortgage tax: €50 each
Minimum tax amount: €1,000
Real-Life Examples
Example 1: Resale apartment, no tax benefit
Market price: €120,000
Cadastral value: €75,000
Registration tax: 9% of €75,000 = €6,750
Fixed fees: €100
Total taxes and fees: €6,850
Example 2: Same apartment with Prima Casa
Registration tax: 2% of €75,000 = €1,500
Fixed fees: €100
Total: €1,600
Example 3: New construction with Prima Casa
Price: €200,000
VAT (4%): €8,000
Fixed fees: €600
Total: €8,600
Example 4: Luxury new build from a developer
Price: €1,800,000
VAT (22%): €396,000
Fixed fees: €600
Total: €396,600
Who Handles the Tax Payments?
All taxes and fees are calculated and paid through the notary at the time of signing the purchase agreement. Buyers do not need to handle the payments directly — everything is included in the closing process.
You’ll receive a full breakdown of taxes and notary fees in advance, before the deed is signed.