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%.
For example, if you buy a residential property from a private person the standard rate is 9% of value on book. 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“.
Follow us on LinkedIn for more on this topic
- Purchasing: Do I need an Italian Bank account?
- Italian Property Purchase Tips
- Financing a property
- Joint or individual purchase: tax implications
- Purchasing jointly with my spouse or separately?
- Purchasing in a condominio building
- Property taxes
- Double taxation
- ICI – Municipal Tax
- VAT on Italian property purchase
- Income Tax
- Inheriting seller’s debt
- Vendor’s solvency affecting the buyer
- Italian airbnb tax
The information presented in the Studio Legale Metta web site has been written and reviewed by Italian lawyers. However, it should not be construed to be legal advice, nor promotion of the establishment of a relationship between lawyer and client. The case studies and answers contained in this web site pertain to the specific situation referenced and should not be understood to generally apply to other circumstances. Persons accessing this web site are encouraged to seek independent counsel for advice concerning their individual needs for legal assistance.
Copyright of Studio Legale Metta – Bari (Italy).