Question: I’m a non-Italian purchasing real estate in Italy. Will I have to pay VAT on the purchase price? If so, how much?
Answer: Italian property transaction tax laws have changed several times over the past years resulting in property transactions that can be subject to up to four proportional transfer taxes, i.e., Registration Tax (imposta di registro), Mortgage Tax (imposta ipotecaria), Cadastral Tax (imposta catastale) and VAT (IVA).
This means that there are certain transactions that are subject to both VAT and one or more of the other proportional taxes. For each of the abovementioned taxes, there is also a range of applicable tax rates depending on the type of property as well as buyer and seller circumstances.
The aggregate total transfer tax could range from 3% to 24%, depending on the applicable taxes and related rates. These taxes are regardless of your residency or citizenship. Since each case is unique, we have put together a table detailing the main possible cases and their related applicable taxes and rates.
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Related information
- Italian Property Owner’s Guide To Italian Income Tax
- Purchasing: Do I need an Italian Bank account?
- 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
- Italian property purchase taxes
- Inheriting seller’s debt
- Vendor’s solvency affecting the buyer
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