If you are a foreign citizen willing to invest in real estate in Italy, you shall have a clear overview of the Italian real estate taxation.
In fact, the Italian real estate tax regime for properties can be a bit confusing. This is a short summary of the main taxes to budget.
First of all, taxes are calculated on the basis of the cadastral value and the cadastral income.
The cadastral income (rendita catastale) depends on the size and location of the property.
The cadastral value (valore catastale) is used to calculate the taxable amount from which taxes are determined.
The main Italian real taxes are as follows:
Registration Tax (imposta di registro)
The registration tax is a stamp duty paid by the buyer on registering the property. Its amount may vary according to:
- The cadastral value;
- If it is going to be your main property, then:
- 2% of the cadastral value, if bought from a private seller;
- 4% of VAT, if bought from a company.
- If it is going to be your second property, then:
- 9% of the cadastral value, if bought from a private seller;
- €200 fixed amount, if bought from a company.
Land Registry Tax (imposta ipotecaria)
- €50, if bought from a private seller;
- €200, if bought from a company.
Cadastral Tax (imposta catastale)
- €50, if bought from a private seller;
- €200, if bought from a company.
The fee amounts may change depending on the registration tax and the seller.
In Italy, there are several kinds of taxes due on the purchase of a property, which depend upon various factors. In fact, in addition to sales taxes, maintenance taxes are also to be considered.
For this reason, our VGS Lawyers and in-house tax consultant will be able to assist you and provide with the main information regarding the fiscal regime applicable after the purchase of your property in Italy and any possible tax deduction of tax saving.
For further information please contact us or leave your contact details in the Contact Form and you will be contacted within 24 hours.