What It Costs to Buy a Home in Italy: Taxes and Fees Explained
Italy taxes property purchases very differently depending on whether the home will be your main residence and on whether you buy from a private seller or a company. Get the classification right and the tax on an existing home can be modest; get it wrong and you pay 9% instead of 2%.
This guide sets out the main taxes and fees as they stand in August 2026, using the Italian Revenue Agency's (Agenzia delle Entrate) own figures. Rates can change with each budget law, so confirm against official sources before you sign anything.
Registration tax: 2% or 9%
When you buy an existing home from a private seller, the main cost is the imposta di registro (registration tax). According to the Agenzia delle Entrate, buyers who qualify for the prima casa (first home) benefit pay 2%; everyone else, including most holiday-home buyers who keep their main residence abroad, pays 9%. In both cases the proportional tax can never be less than €1,000.
- Prima casa (main residence): 2% registration tax, minimum €1,000
- Seconda casa (second home): 9% registration tax, minimum €1,000
- Fixed mortgage (ipotecaria) and cadastral (catastale) taxes: €50 each on private purchases
Tax is charged on the cadastral value, not the price
For purchases between private individuals, registration tax is calculated on the property's valore catastale (cadastral value), not on the price you actually pay. Cadastral values are typically well below market prices, especially for older and rural property, so the effective tax burden is often far lighter than the 2% or 9% headline suggests.
Ask the notary to confirm the cadastral value early in the process. It is the single most useful number for budgeting your purchase taxes.
Buying new from a developer: VAT instead
If the seller is a VAT-registered company, you pay IVA (VAT) on the actual sale price rather than proportional registration tax. The Agenzia delle Entrate sets the rates at 4% with the prima casa benefit, 10% without it, and 22% for homes in the luxury cadastral categories A/1, A/8 and A/9. Registration, mortgage and cadastral taxes are then charged at a fixed €200 each.
- Prima casa bought from a developer: 4% VAT on the price
- Second home bought from a developer: 10% VAT
- Luxury categories A/1, A/8 and A/9: 22% VAT
- Plus fixed registration, mortgage and cadastral taxes of €200 each
Qualifying for the prima casa rate
The reduced rate is not reserved for Italians, but it comes with conditions. The property cannot be in a luxury cadastral category, and you must have, or take up, residence in the municipality where the home is located, in most cases within 18 months of purchase. You must also not own another home bought with the same benefit unless you sell it within the legal deadline.
Buyers who keep their main home abroad will normally pay second-home rates. The conditions are precise and occasionally updated, so check the Agenzia delle Entrate's guidance or ask your notary.
Other costs to budget for
Beyond taxes, budget for the notary, who is mandatory in every Italian property purchase and collects the taxes at completion; fees vary with the price and complexity of the deal. Estate agency commission is normally paid by both sides and should be agreed in writing before you make an offer.
If you borrow, the Agenzia delle Entrate's property market observatory (OMI) reports that the average initial rate on new purchase mortgages was 3.35% in 2025, falling in every region. Non-Italian speakers may also need a translator or interpreter at the deed, which adds cost.
A market moving upward
Buying costs matter more in a rising market. The Agenzia delle Entrate's Rapporto Immobiliare 2026 counted 766,757 home sales in 2025, up 6.4% on 2024, and ISTAT's house price index was up 5.2% year on year in the first quarter of 2026. If you are still comparing areas, Habio's Italy listings and buyer guides are a practical place to weigh prices against the taxes described here.
Frequently asked questions
How much is the registration tax when buying a house in Italy?
2% of the cadastral value if you qualify for the prima casa (first home) benefit, otherwise 9%, with a €1,000 minimum in both cases, according to the Agenzia delle Entrate. New homes bought from VAT-registered companies are taxed with VAT at 4%, 10% or 22% on the price instead.
Can foreigners get Italy's prima casa tax benefit?
Yes. The benefit depends on residence, not nationality. You must take residence in the municipality where the property is located, generally within 18 months, and not own another home bought with the benefit. Buyers who remain resident abroad pay the 9% second-home rate.
Is Italian purchase tax paid on the price or the cadastral value?
For sales between private individuals, registration tax is calculated on the cadastral value, which is usually well below the market price. VAT on new builds from developers is charged on the actual price.
What fees should I budget for beyond taxes in Italy?
Notary fees (a notary is mandatory and collects the purchase taxes at completion), estate agency commission agreed in advance, mortgage costs, and possibly a translator at the deed if you do not speak Italian. Allow several thousand euros on top of the taxes.
Sources
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.