Italy

Real estate websites
STEPS
Check Eligibility
- Non-Residents: Foreigners, including non-EU nationals, can purchase property in Italy. However, non-EU nationals may need to meet additional requirements or obtain a permit if purchasing land in certain areas, particularly agricultural land or properties near the border.
- Financing: Foreign buyers can secure financing from Italian banks, but they often require a larger down payment (typically 30% to 40%) and proof of stable income.
Determine the Budget
- Budgeting: Consider the full cost of purchasing property, which includes the purchase price, notary fees, registration taxes, and additional expenses like property insurance, home maintenance, and utilities.
- Mortgage: If you require financing, Italian banks may lend up to 60% to 80% of the property's value, depending on the buyer’s situation and the type of property.
Find a Property
- Online Search: Websites like Immobiliare.it, Casa.it, and Idealista.it list properties for sale across Italy. You can filter results by location, price, and property type.
- Real Estate Agents: Working with a local real estate agent (agente immobiliare) can be beneficial, especially for foreign buyers. They can help guide you through the process and assist with negotiations.
View the Property
- Inspections: It’s advisable to have a professional inspection of the property to check for any potential issues, including structural damage, plumbing, and electrical systems.
- Visiting the Property: If you're not in Italy, you can hire someone to visit the property for you or arrange for a virtual tour.
Make an Offer
- Bidding: The process typically involves negotiating with the seller. Once an offer is agreed upon, you will sign a preliminary sales agreement (compromesso).
- Contract: A deposit (usually around 10% to 20% of the purchase price) is required when signing the preliminary agreement.
Complete Legal Formalities
- Notary Role: A notary (notaio) is required to complete the sale. The notary will verify that the property has no legal issues and oversee the signing of the final contract.
- Registration Taxes: Italy charges a registration tax on property purchases, which ranges from 2% to 9% of the purchase price, depending on the property type and the buyer’s residency status.
Register the Property
- Land Registry: After the notary completes the sale, the property must be registered with the Italian Land Registry (Catasto) to officially transfer ownership.
- Insurance: It is advisable to obtain property insurance (assicurazione sulla casa) to protect against damage, theft, or unforeseen events.
Move In
- Once all legal processes are complete and the property is officially registered, you can move into your new home.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: Hiring an Italian lawyer (avvocato) can be helpful to ensure that all legal aspects of the transaction are handled properly and that no legal issues arise during the purchase.
- Taxes and Fees: Be aware of registration taxes, notary fees, and any local property taxes that may apply when buying property in Italy.
ADDITIONAL NOTICES
- Notary Role: The notary (notaio) is crucial in completing the property sale in Italy. They ensure that the transaction is legally binding and that the property title is clear.
- Registration Tax: Italy’s registration tax ranges from 2% to 9% of the purchase price, depending on whether the buyer is a resident and the type of property being purchased.
- Mortgage Financing: Foreign buyers can obtain a mortgage in Italy, though it typically requires a down payment of 30% to 40% of the property’s value.

In Italy, real estate taxes are regulated by the national government and local municipalities. The key types of taxes related to real estate in Italy include:

Property Ownership Tax

Property Tax (Imposta Municipale Unica - IMU): In Italy, property tax is applied at the municipal level and applies to both residential and commercial properties. The tax is calculated based on the cadastral value (valore catastale), which is often lower than the market value.

  • The standard IMU tax rate ranges from 0.4% to 0.76% of the property’s cadastral value per year, depending on the municipality and property type.
  • The property tax is typically the responsibility of the property owner and is paid annually.
  • Residential properties may benefit from exemptions or reduced rates if they are used as a primary residence.
Real Estate Transfer Tax

The real estate transfer tax is applied when a property changes ownership, such as during a sale or inheritance.

  • The standard tax rate for purchasing real estate is 9% of the property’s purchase price or market value, whichever is higher.
  • For first-time homebuyers, the tax rate may be reduced to 2% for the purchase of a primary residence.
  • The transfer tax is reduced or exempted for specific types of transfers, such as between close family members or when purchasing newly built properties.
Capital Gains Tax on Real Estate

Capital gains tax applies when a property is sold at a profit. However, there are exemptions for certain cases, such as for primary residences.

  • The general capital gains tax rate is 26% on the profit made from the sale of the property (the difference between the sale price and purchase price).
  • If the property was held for more than 5 years, capital gains tax may not apply for individuals selling private properties.
  • If the property was used as a primary residence for at least 2 years, the sale may be exempt from capital gains tax.
Inheritance and Gift Tax

Italy imposes inheritance and gift taxes on the transfer of real estate. The rates depend on the relationship between the deceased or donor and the recipient.

  • The inheritance and gift tax rates are progressive, ranging from 4% to 8%, depending on the relationship and value of the property.
  • Spouses and direct descendants (children) benefit from exemptions, with the first €1 million exempt from tax for each beneficiary.
  • For other relatives, the exemptions are lower, and the tax rates are higher based on the value of the inheritance or gift.
Municipal Tax

In addition to property tax, some municipalities in Italy may impose additional local levies or charges for certain types of real estate, such as for the use of public infrastructure or services.

Income Tax on Rental Income

If rental income is generated from real estate, it is subject to both national and municipal income taxes. The tax rate depends on the total income and the tax bracket of the property owner.

  • Rental income is taxed as part of the overall personal income tax, with rates ranging from 23% to 43%, depending on the income level.
  • Property owners can generally deduct related expenses, such as maintenance costs, property management fees, and mortgage interest, from their rental income.
  • In some cases, rental income from short-term rentals (e.g., Airbnb) is subject to a flat tax rate of 21% for properties located in certain regions of Italy.
Note: Tax rates and regulations can vary by municipality and region, and exemptions or reductions may apply based on specific circumstances. It is recommended to check with local authorities or consult a tax professional for accurate information.
Official
Italian Republic
CIOC
ITA
Subregion
Southern Europe
Borders
AUT
FRA
SMR
SVN
CHE
VAT
Capital
Rome
Area
301 336 km²
Population
59 554 000
Timezones
UTC+01:00
Phone
+39   
Currencies
Euro (EUR €)