Buying Costs and Taxes in Italy: What to Budget in 2026

Beyond the asking price, buying a home in Italy carries taxes and fees that typically add 9–15% to your budget. Here is a clear, sourced breakdown for 2026.

Falling for an Italian farmhouse or a city apartment is easy; budgeting for it takes a little more care. The purchase price is only the beginning, and Italy's transfer taxes work differently from most countries because several are calculated on the property's cadastral value (valore catastale) rather than the price you actually pay. Knowing the rules in advance keeps your plans grounded.

Registration tax or VAT. When you buy from a private seller, you pay the registration tax (imposta di registro): 2% of the cadastral value if the property becomes your main home (prima casa) and you register residency there within 18 months, or 9% for a second home or holiday property (De Tullio Law Firm; propertyfinder.bg). Because the cadastral value is usually well below the market price, this often costs less than it first appears. Buy a new-build from a developer instead and you pay VAT (IVA) on the price: 4% for a first home, 10% standard, or 22% for luxury properties. Land-registry and mortgage taxes are then just fixed €50 each (propertyfinder.bg).

Notary, agent and legal fees. A notary (notaio) is compulsory and typically charges 1%–2.5% of the declared value. Estate-agent commission usually runs 3%–5% plus 22% VAT, and independent legal advice adds roughly €2,000–€5,000 (De Tullio Law Firm). Budget a little more for translation and surveys.

Annual and rental taxes. Your main home is generally exempt from the annual IMU property tax; second homes pay a municipal rate typically between 0.76% and 1.06% of the revalued cadastral value (propertyfinder.bg). If you let the property, non-residents can opt for the flat cedolare secca of 21% on a long-let (rising to 26% on a second let property), instead of progressive IRPEF of 23%–43% (co-ownership-property.com). On resale, capital gains are fully exempt after five years' ownership; sell sooner and gains face IRPEF or a 26% flat substitute tax.

A realistic total. Add it up and round-trip buying costs generally land at 9%–15% of the purchase price for a second home, and nearer the lower end for a first home (De Tullio Law Firm).

This article is for general information only and is not legal, tax or investment advice. Rules and rates change; always consult a qualified Italian notary, lawyer or tax adviser before you buy.

Sources: detulliolawfirm.com, propertyfinder.bg, co-ownership-property.com

Market data: Italy