Q Question: What are the taxes to buy an Italian property?
A Answer: Italian property purchase taxes depend on several circumstances such as property value on record, if the transaction is subject to VAT, local regulations and incentives, purchase purpose etc.
Depending on those circumstances, Italian residential property purchase tax rates range from 2% to 10% of the property value on record or the sale price.
For example, if you buy a residential property from a private person the standard rate is 9% of value on the property tax record (some people call this “cadastral value“). A reduced 2% tax rate is applicable if you qualify for First Home Tax Reduction.
If you buy an Italian house from a developer the transaction is subject to VAT and the rate is 10% of the purchase price.
Since each case is unique we have put together a table detailing the main possible cases and applicable taxes and rates. Find rates applicable from 1 January 2018 in our 2018 Italian Property Purchase Guide which includes also information about local taxes, capital gains tax, inheritance taxes etc.
For more information on this subject, read also the FAQ “VAT on Italian Property Purchase“.
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