Italy is one of the most attractive countries in Europe for buying real estate. Its favorable climate, rich history, developed infrastructure, and high standard of living attract both investors and those looking for a second home on the coast or in a picturesque village. But before buying, it is important to understand the tax system: in Italy, property taxes depend on many factors, from the location of the property to the status of the owner.
Main property taxes in Italy
The Italian tax system for real estate includes both one-time taxes on purchase and annual taxes on ownership.
IMU (Imposta Municipale Unica) — municipal property tax
The IMU rate is set by local authorities and ranges from 0.46% to 1.06% of the cadastral value of the property.
The basis for calculation is the cadastral value (rendita catastale) multiplied by an adjustment coefficient (usually 160 or 168), after which the rate is applied.
When buying from a private individual:
2% of the cadastral value — if it is the primary residence for a resident buyer.
9% — if it is a secondary or investment property.
When buying from a developer:
10% VAT, plus fixed registration fees (€200 each).
Cadastral and mortgage fees are also payable — €50 each.
Special features for non-residents
Foreigners are free to buy real estate in Italy. However, there are several important nuances:
If you are not registered as a resident, IMU tax is levied even on a single property.
Property status is determined not by citizenship, but by registration with the municipality (residenza anagrafica).
If the property is rented out, the rental income is subject to mandatory declaration and taxation:
under the simplified cedolare secca scheme — 21%,
or at a progressive income tax rate: from 23% to 43%.
Calculation examples
An apartment in Rome purchased by a German citizen for vacation purposes:
Cadastral value: €80,000
IMU at a rate of 1%: approximately €1,280 per year
House in Tuscany, rented out:
IMU + TARI: from €1,500 to €2,000 per year
Plus tax on rental income: 21% or according to the scale.
Conclusion
The Italian tax system for real estate requires attention and calculations. The main annual expenses are IMU and TARI, and when purchasing, there are significant one-time fees. In the case of rental or resale, there are additional taxes on income. Therefore, before signing a contract, it is recommended to consult with an Italian lawyer or accountant to avoid surprises and fines.
Source: http://relocation.com.ua/property-taxes-in-italy-analysis-by-relocation/
