BUYING HOME! HOW MUCH DOES THAT COST?

When you are buying a house you will probably have questions regarding the accessory costs at the agreed price.

The 5 most important SALES TAXES in Italy:

1) Registration tax (imposta di registro),
2) Mortgage tax (imposta ipotecaria),
3) Land registry tax (imposta catastale),
4) VAT (IVA) and
5) Capital gains tax.

Maintenance taxes:

⁃ Service tax (TASI)
⁃ Property ownership tax (IMU)
⁃ Waste collection tax (TARI)

It’s important to know that the taxes are calculated with the “cadastral value” (valore catastale) which is based on an official valuation and doesn’t correspond to the “market price” (generally it is much lower).

So how much does it cost to buy a house in Italy?

PRIVATE PURCHASE

You are buying your “first home” (excluding category A / 1, A / 8 and A / 9)
Imposta di registro: 2% calculated on the cadastral value
Mortgage tax: € 50
Land registry tax: € 50
If your residence is in another Municipality, you have to transfer within 18 months of the purchase in the town where the property is located.

You are buying a “second home”
Registration tax: 9% calculated on the cadastral value
Mortgage tax: € 50
Land registry tax: € 50

The minimum amount of taxes is € 1,000.

PURCHASE FROM A DEVELOPER OR CONSTRUCTOR

Purchase as a “first home”
VAT: 4%
Registration tax: € 200
Mortgage tax: € 200
Land registry tax: € 200
If your residence is in another Municipality, you have to transfer within 18 months of the purchase in the town where the property is located.

Purchase “second home”
VAT: 10%
Registration tax: € 200
Mortgage tax: € 200
Land registry tax: € 200

The houses with an energy class  of A or B, in 2018 and 2019 50% of the paid taxes will be refund in 10 years.

In the case that you’ve already taken advantages of the “first home” facilitation?

By selling the old “first house”, you can to buy the new house as a “first home”.

BUT there are no tax reliefs when you buy a property in the same municipality where you are already owner of a house.

Happy Investment in Italy!