Authored by the expert who managed and guided the team behind the Italy Property Pack
Everything you need to know before buying real estate is included in our Italy Property Pack
Buying property in Italy as a foreigner means dealing with a unique mix of taxes, notary fees, and professional costs that can catch first-time buyers off guard.
Italy uses a notary-centered system where nearly all closing formalities pass through one professional, which is different from what many international buyers expect.
We constantly update this blog post to reflect the latest tax rates, fee ranges, and legal requirements so you always have current information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Italy.
Overall, how much extra should I budget on top of the purchase price in Italy in 2026?
How much are total buyer closing costs in Italy in 2026?
As of early 2026, most foreign buyers in Italy should expect to pay between 10% and 16% of the purchase price in total closing costs, which translates to roughly €30,000 to €48,000 (about $32,000 to $51,000 or €30,000 to €48,000) on a typical €300,000 property.
If you qualify for Italy's "prima casa" first-home relief, skip the agent, and keep the notary bill simple, you could bring your Italy property closing costs down to around 4% to 6% of the price, or approximately €12,000 to €18,000 ($13,000 to $19,000) on that same €300,000 home.
On the high end, if you're buying a new-build from a developer with 10% VAT, paying a buyer-side agent, and adding mortgage costs plus technical checks, your total Italy buyer fees could reach 15% to 22% of the price, meaning €45,000 to €66,000 ($48,000 to $70,000) or more.
The main factors pushing your Italy closing costs toward the low or high end include whether you buy from a private seller or a developer (which determines if you pay registration tax or VAT), whether you qualify for prima casa relief, and whether you use a real estate agent.
What's the usual total % of fees and taxes over the purchase price in Italy?
For a typical foreign individual buying residential property in Italy in 2026, the usual total percentage of fees and taxes runs between 10% and 16% of the purchase price.
The realistic range spans from about 4% at the very lowest (with prima casa relief and no agent) up to 22% or more at the highest (new-build with full VAT and all professional services), though most standard Italy property transactions fall somewhere in the middle.
Government taxes typically account for the largest share of these costs in Italy, often 6% to 10% of the price, while professional fees like notary and agent commissions usually add another 3% to 6% on top.
By the way, you will find much more detailed data in our property pack covering the real estate market in Italy.
What costs are always mandatory when buying in Italy in 2026?
As of early 2026, the mandatory costs when buying property in Italy include purchase taxes (either registration tax or VAT depending on the seller type), fixed mortgage and cadastral taxes, the notary fee for executing and registering the deed, and land registry formalities.
Optional but highly recommended costs for buyers in Italy include independent legal or technical due diligence (especially for older properties or rural homes), professional translation services at signing if you're not fluent in Italian, and mortgage-related extras like bank appraisal fees if you're financing the purchase.
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What taxes do I pay when buying a property in Italy in 2026?
What is the property transfer tax rate in Italy in 2026?
As of early 2026, Italy does not have a single property transfer tax rate; instead, you pay either 9% registration tax (imposta di registro) when buying from a private seller, or 10% VAT (22% for luxury categories) when buying from a developer, with the rate dropping to 2% registration tax or 4% VAT if you qualify for prima casa first-home relief.
There are no extra transfer taxes specifically for foreigners buying property in Italy, as the rates depend on the type of sale and your eligibility for prima casa, not your nationality.
Buyers pay VAT on residential property purchases in Italy when buying from a developer or company where the sale is subject to VAT, which is common for new-build properties, while purchases from private individuals typically follow the registration tax route instead.
Stamp duty in Italy is not a large standalone tax like in some countries; rather, small fixed amounts are included within the notary's charges, and the main taxes to budget for remain registration tax or VAT plus €50 each for mortgage and cadastral taxes (or €200 each in VAT transactions).
Are there tax exemptions or reduced rates for first-time buyers in Italy?
Italy's main buyer tax relief is called "agevolazioni prima casa," which can reduce registration tax from 9% to 2%, or VAT from 10% to 4%, when you meet specific residency and ownership conditions.
If you buy property through a company in Italy, the purchase can still follow either the VAT or registration tax route depending on the transaction, but you'll face different ongoing taxation, compliance requirements, and reporting obligations compared to buying as an individual.
There is a significant tax difference between new-build and resale properties in Italy: buying from a private seller usually means paying 2% or 9% registration tax plus small fixed taxes, while buying from a developer typically means paying 4%, 10%, or 22% VAT plus €200 each for registration, mortgage, and cadastral taxes.
To qualify for prima casa relief in Italy, you must establish residency in the municipality where the property is located within 18 months, not own other properties purchased with the same benefit, and meet other conditions outlined in official guidance.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Italy in 2026?
How much does a notary or conveyancing lawyer cost in Italy in 2026?
As of early 2026, notary fees in Italy typically range from 1% to 2.5% of the purchase price, with a practical minimum of around €1,500 to €3,000 (about $1,600 to $3,200) even for lower-priced properties because of the base workload involved.
Notary fees in Italy are usually charged as a percentage of the property price for larger transactions, but there's always a minimum floor that applies regardless of how cheap the property is.
Translation or interpreter services for foreign buyers in Italy typically cost between €200 and €800 ($215 to $860), depending on whether you need a sworn translator at the signing or multiple document translations.
A tax advisor in Italy is not always necessary for straightforward personal purchases, but if you're a non-resident or planning to rent out the property, expect to pay €300 to €1,500 ($320 to $1,600) for a consultation and initial setup.
We have a whole part dedicated to these topics in our our real estate pack about Italy.
What's the typical real estate agent fee in Italy in 2026?
As of early 2026, real estate agent fees in Italy typically range from 2% to 5% of the purchase price plus VAT on the service, meaning a €300,000 property could involve agent costs of €6,000 to €15,000 ($6,400 to $16,000) plus around 22% VAT.
In Italy, both the buyer and seller can pay agent fees, either to separate agents or to the same intermediary, depending on how the deal is structured and what's negotiated upfront.
The realistic low-to-high range for Italy real estate agent fees spans from about 2% (if you negotiate hard or find a discount broker) to 5% or occasionally higher in luxury markets or complex transactions.
How much do legal checks cost (title, liens, permits) in Italy?
Legal checks in Italy, including title searches, lien verification, and permit reviews, typically cost between €200 and €800 ($215 to $860) for basic searches, or €800 to €2,500 ($860 to $2,700) if you hire a geometra for a full technical due diligence package on older properties.
Property valuation fees in Italy, required by banks for mortgage applications, usually cost around €200 to €300 ($215 to $320) for a standard residential appraisal.
The most critical legal check you should never skip in Italy is the land registry inspection (ispezione ipotecaria) to verify there are no liens, mortgages, or seizures attached to the property you're buying.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Italy.
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What hidden or surprise costs should I watch for in Italy right now?
What are the most common unexpected fees buyers discover in Italy?
The most common unexpected fees buyers discover in Italy include condominium arrears or special assessments for building works (like roof or elevator repairs), costs to regularize cadastral or permit mismatches, and extra notary charges when the transaction involves multiple cadastral units or complex ownership histories.
Yes, unpaid property debts can transfer to buyers in Italy, which is why checking for liens, mortgages, and seizures (ipoteche and pignoramenti) through official land registry inspections is essential before you sign anything.
Scams do exist in Italy, particularly targeting foreign buyers with fake listings or requests for deposits outside proper channels, so you should only make large payments through traceable, contract-backed methods that your notary confirms.
Fees that are usually not disclosed upfront in Italy include condominium special assessments (which require requesting building minutes to discover), the cost to fix permit or cadastral issues, and sometimes agent fees quoted without VAT.
In our property pack covering the property buying process in Italy, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Italy?
If the property has a tenant in Italy, expect extra legal and administrative costs of roughly €300 to €1,000 ($320 to $1,070) to verify the lease terms, rent payment history, deposit status, and tenant rights before closing.
When you buy a tenanted property in Italy, you inherit the existing lease contract and all its obligations, meaning you must honor the rental terms and cannot simply remove the tenant at will.
Terminating an existing lease immediately after purchase in Italy is generally not possible because Italian law strongly protects tenants, and you'll need to wait until the lease expires or have legally valid grounds for eviction.
A sitting tenant typically lowers the property's market value in Italy by 10% to 30% because buyers factor in the reduced flexibility and potential complications, which can work in your favor during negotiations if you're an investor.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Italy.
We have made this infographic to give you a quick and clear snapshot of the property market in Italy. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Italy?
Which closing costs are negotiable in Italy right now?
Negotiable closing costs in Italy include the real estate agent commission rate, who pays for certain technical checks, repair credits or price reductions to account for needed works, and whether the seller covers condominium arrears or known special assessments.
Closing costs that are fixed by law and cannot be negotiated in Italy include registration tax or VAT rates, the fixed mortgage and cadastral tax amounts (€50 or €200 depending on transaction type), and official land registry fees.
Buyers in Italy can realistically negotiate agent fees down by 0.5% to 1% of the purchase price, and can often get sellers to cover specific repair costs or outstanding building charges, especially in slower markets or when properties have been listed for a while.
Can I ask the seller to cover some closing costs in Italy?
In Italy, there's a reasonable chance a seller will agree to cover some closing costs, especially in buyer-friendly market conditions or when the property has issues that need resolving before sale.
The specific closing costs sellers in Italy are most commonly willing to cover include agent fees (either partially or fully), costs to regularize permit or cadastral issues, and outstanding condominium arrears or special assessment charges.
Sellers in Italy are more likely to accept covering closing costs when the property has been on the market for several months, when there are known defects or compliance issues, or during periods of slower demand in that particular neighborhood or region.
Is price bargaining common in Italy in 2026?
As of early 2026, price bargaining is common in most Italian property markets, though the typical discount varies significantly depending on the city, neighborhood, and how long the property has been listed.
Buyers in Italy typically negotiate 5% to 15% below the asking price, which on a €300,000 property means potential savings of €15,000 to €45,000 ($16,000 to $48,000), though prime locations in cities like Milan or Rome may see smaller discounts while rural areas or slower markets may allow more.
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What monthly, quarterly or annual costs will I pay as an owner in Italy?
What's the realistic monthly owner budget in Italy right now?
A realistic monthly owner budget for an apartment in Italy ranges from about €150 to €400 ($160 to $430) covering condominium charges, waste tax, insurance, and basic maintenance, though this can go higher for buildings with concierge services or central heating systems.
The main recurring expense categories that make up this monthly budget in Italy include condominium fees (spese condominiali), the municipal waste tax (TARI), home insurance, and a maintenance reserve for unexpected repairs.
The realistic low-to-high range for monthly owner costs in Italy spans from about €100 ($107) for a small apartment in a basic building with minimal services up to €600 or more ($640+) for a larger property in a full-service condominium in cities like Milan or Rome.
Condominium charges tend to vary the most in Italy because they depend heavily on building amenities, age, location, and whether any major works (like facade restoration or elevator replacement) have been approved.
You can see how this budget affect your gross and rental yields in Italy here.
What is the annual property tax amount in Italy in 2026?
As of early 2026, the annual property tax (IMU) in Italy for a second home typically ranges from €600 to €2,500 ($640 to $2,700) per year for a standard apartment, though IMU is usually exempt for properties used as your main residence (abitazione principale) unless they're classified as luxury categories.
The realistic low-to-high range for annual property taxes in Italy depends heavily on your property's cadastral value and the municipality's rate, spanning from near zero for an exempt main home up to €3,000 or more ($3,200+) for higher-value second homes in cities with maximum rates.
IMU in Italy is calculated based on the property's cadastral value (rendita catastale), which is then multiplied by legal coefficients and the municipal tax rate, not simply based on the market price you paid.
Main residence owners in Italy are generally exempt from IMU, except for luxury-category properties (A/1, A/8, A/9), and some municipalities offer additional reductions for specific situations like properties lent to family members.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Italy. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Italy in 2026?
What tax rate applies to rental income in Italy in 2026?
As of early 2026, rental income in Italy can be taxed under the elective flat-tax regime called "cedolare secca" at 21% for standard leases or 10% for certain agreed-rent contracts (canone concordato), instead of regular progressive income tax rates that can reach over 40%.
Under the cedolare secca regime in Italy, landlords trade the simplicity of a flat tax rate for fewer expense deductions, though under ordinary income tax treatment you can deduct more costs but face progressive rates.
The realistic effective tax rate for typical landlords in Italy ranges from about 10% (if you qualify for the reduced cedolare secca rate) to 21% (standard cedolare secca), or potentially higher if you opt for ordinary taxation without the flat-tax election.
Foreign property owners in Italy generally face the same rental income tax rules as residents when renting out Italian property, though your overall tax situation depends on treaty arrangements with your home country and whether you're classified as a tax resident.
Do I pay tax on short-term rentals in Italy in 2026?
As of early 2026, short-term rentals in Italy are taxable and subject to increasing compliance requirements, including registration obligations and identification codes (CIN) that hosts must display on listings.
Short-term rental income in Italy can often use the cedolare secca flat-tax option (typically 21%, or 26% in some recent proposals for multiple properties), though the rules differ from long-term rentals and depend on how many properties you rent and whether the activity is considered business-like.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Italy.
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If I sell later, what taxes and fees will I pay in Italy in 2026?
What's the total cost of selling as a % of price in Italy in 2026?
As of early 2026, the total cost of selling property in Italy typically ranges from 3% to 7% of the sale price before any capital gains tax, with the exact amount depending mainly on agent fees and whether you have a mortgage to clear.
The realistic low-to-high percentage range for total selling costs in Italy spans from about 2% (if you sell privately without an agent) up to 10% or more (if you add capital gains tax on top of full agent and administrative fees).
The specific cost categories that make up selling expenses in Italy include real estate agent commission, administrative and document preparation costs, potential mortgage cancellation fees, and capital gains tax if applicable.
The single largest contributor to selling expenses in Italy is usually the real estate agent commission, which typically runs 2% to 5% plus VAT and represents the bulk of what sellers pay.
What capital gains tax applies when selling in Italy in 2026?
As of early 2026, sellers in Italy can opt to pay a substitute tax of 26% on the capital gain at the notary, instead of including the gain in their regular income tax return where it would face progressive rates.
Exemptions to capital gains tax in Italy include sales of your main residence (if you've lived there for most of the ownership period), properties held for more than five years, and properties acquired through inheritance.
Foreigners selling property in Italy do not pay extra taxes just for being foreign; the same capital gains rules apply, though the allocation of taxing rights depends on any applicable tax treaty between Italy and your home country.
Capital gain in Italy is calculated as the sale price minus the original purchase price, plus documented improvement costs and purchase-related expenses, with specific rules if you inherited the property or use the cadastral revaluation option.
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Italy, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Agenzia delle Entrate - Purchase Taxes | Italy's official tax authority explaining exact taxes on home purchases. | We used it to define the registration tax and VAT rates. We built the buyer tax ranges in this article from their official tables. |
| Agenzia delle Entrate - PDF Guide | Official detailed handbook with examples and legal definitions. | We cross-checked prima casa rules and VAT versus registration tax logic. We confirmed fixed tax amounts when VAT applies. |
| Agenzia delle Entrate - Prima Casa Relief | Official page summarizing eligibility and benefits for first-home relief. | We explained what changes when you qualify for prima casa. We used it to frame minimum plausible tax scenarios. |
| Agenzia delle Entrate - Capital Gains | Official rulebook for capital gains taxes on property sales. | We stated the 26% substitute tax option and how it works. We built the selling tax section using their guidance. |
| Ministry of Finance - IMU Overview | Ministry explaining the national framework for property tax. | We confirmed IMU exemptions for main homes and why rates vary. We explained municipal adjustment ranges using their guidance. |
| Ministry of Finance - TARI | National ministry source for municipal waste tax rules. | We explained what TARI is and why it varies by city. We structured the owner running costs section around their framework. |
| Immobiliare.it - Agent Fees | One of Italy's largest property portals documenting standard practices. | We framed who pays the agent and when commission is due. We triangulated typical commission ranges with their explanations. |
| Idealista - Mortgage Costs | Major property portal with consumer-facing mortgage guidance. | We estimated typical bank valuation costs in euros. We triangulated real-world pricing for common mortgage fees. |
| Altroconsumo - Condominium Expenses | Consumer authority explaining how condo expenses work. | We documented why condo charges can be significant surprises. We used their guide to explain special assessment risks. |
| Informazione Fiscale - Cedolare Secca | Widely cited Italian tax explainer on rental taxation. | We framed the 2026 cedolare secca rates and structure. We recommended confirming specific cases with professionals. |
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