Italy Property Tax for Non-Residents

Using the calculator

1. Choose what you want to work out: buying, owning or selling.
2. Enter the figures the form asks for: the price, the seller and the cadastral income (rendita catastale) if you know it; or the rendita and your comune's IMU rate; or how and when you acquired the property and the prices.
3. Each tax and cost appears on its own line with how it is worked out, and the total below.

Buying

From a private seller you pay a registration tax of 9% (at least €1,000) plus €50 + €50 in mortgage and cadastral tax. An individual buying a home can ask in the deed to pay it on the cadastral value — the rendita catastale × 1.05 × 120 — instead of the price, which is usually far lower. From a builder you pay VAT of 10% (22% on luxury homes) and €200 each of registration, mortgage and cadastral tax. The prima casa relief (2% registration tax, or 4% VAT) is only for a buyer who moves their residence to that comune within 18 months, or works there. Add the notary and, if you use one, the estate agent.

Owning

The comune's yearly IMU is worked out on the rendita × 1.05 × 160, at the rate the comune sets — 0.86% is the basic rate, and it can go up to 1.06% (1.14% in some cities). A non-resident's home is taxed as a second home; only the main home of someone who lives in Italy is exempt. Rent from a long-term lease can be taxed with the cedolare secca: 21%, or 10% for an agreed rent.

Selling

The gain is taxed only when you sell within 5 years of buying or building — and not when the home was your main home for most of that time, nor when you inherited it. The tax is a 26% substitute tax paid through the notary. A lawyer checks the title, the cadastral records and the planning compliance before you buy or sell.