Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Milan's property market is included in our pack
Buying property in Milan as a foreigner comes with a unique set of costs, taxes, and fees that can catch many buyers off guard.
This guide breaks down everything you need to budget for, from transfer taxes and notary fees to hidden charges and ongoing ownership costs.
We constantly update this blog post to reflect the latest regulations and market conditions in Milan's property market.
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 Milan.
Overall, how much extra should I budget on top of the purchase price in Milan in 2026?
How much are total buyer closing costs in Milan in 2026?
As of early 2026, total buyer closing costs in Milan typically range from 6% to 20% of the purchase price, which means on a €500,000 apartment you could pay anywhere from €30,000 to €100,000 (roughly $32,000 to $108,000 USD) in additional costs.
The minimum extra budget possible in Milan is around 4% to 6% of the purchase price (€20,000 to €30,000 or $21,500 to $32,000 USD on a €500,000 property), but this only applies if you qualify for "prima casa" first-home benefits, buy from a private seller, and skip using a real estate agent.
On the high end, foreign buyers in Milan should realistically plan for 15% to 20% extra (€75,000 to €100,000 or $81,000 to $108,000 USD on a €500,000 property), which is common when you cannot claim first-home tax reductions, pay full agency commissions, and need comprehensive legal support.
The main factors that determine where you land in that range in Milan are whether you qualify for Italy's "prima casa" tax benefits (which most foreigners do not), whether you buy from a private seller or a developer (affecting VAT versus registration tax), and whether you use a real estate agent (who will charge both buyer and seller in Italy).
What's the usual total % of fees and taxes over the purchase price in Milan?
The usual total percentage of fees and taxes over the purchase price in Milan sits between 10% and 15% for most standard residential transactions involving foreign buyers.
The realistic low-to-high range that covers most property purchases in Milan runs from about 6% (best-case scenario with first-home benefits and no agent) to 20% (non-resident buying a second home with full agency fees), with 13% to 18% being the most common band for foreigners.
Government taxes in Milan typically account for 2% to 10% of the purchase price depending on your eligibility for reduced rates, while professional service fees including notary, agent, and legal checks add another 4% to 8% on top of that.
By the way, you will find much more detailed data in our property pack covering the real estate market in Milan.
What costs are always mandatory when buying in Milan in 2026?
As of early 2026, the mandatory costs when buying property in Milan include the purchase tax (either registration tax or VAT depending on seller type), the notary deed fees, and the fixed cadastral and mortgage taxes that the notary collects on behalf of the Italian state.
Optional but highly recommended costs in Milan include hiring an independent English-speaking lawyer if you do not speak Italian fluently, getting a technical survey especially in older buildings in neighborhoods like Navigli or Brera, paying for certified translation services for legal documents, and conducting a thorough urban planning compliance check given Milan's complex building permit history.
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What taxes do I pay when buying a property in Milan in 2026?
What is the property transfer tax rate in Milan in 2026?
As of early 2026, the property transfer tax rate in Milan is either 2% or 9% registration tax when buying from a private seller (2% if you qualify for "prima casa" first-home benefits, 9% if you do not), or 4%, 10%, or 22% VAT when buying from a developer depending on property category and eligibility.
There is no special "foreigner surcharge" transfer tax in Milan, but most foreign buyers end up paying the higher 9% registration tax rate because they cannot meet Italy's residency requirements for the reduced "prima casa" rate.
Buyers in Milan pay VAT instead of registration tax when purchasing from a developer or construction company, with VAT set at 10% for standard residential units or 22% for luxury categories (A/1, A/8, A/9), plus €200 each for registration, mortgage, and cadastral taxes.
Stamp duty in Milan is embedded in the notary's closing statement as small administrative charges, but the main tax exposure comes from either the registration tax or VAT described above, not a separate stamp duty calculation.
Are there tax exemptions or reduced rates for first-time buyers in Milan?
Italy's main tax reduction for buyers in Milan is the "prima casa" regime, which drops the registration tax from 9% to 2% on resale purchases, or can reduce VAT to 4% on qualifying new-build purchases from developers.
Buying through a company in Milan changes the tax profile significantly and often increases complexity with different VAT treatment and accounting requirements, so individual foreign buyers should generally stick with personal purchases unless a tax advisor specifically recommends otherwise.
There is a meaningful tax difference between new-build and resale properties in Milan: resale purchases trigger registration tax (2% or 9%), while developer sales trigger VAT (typically 10% or 22%) plus €200 fixed fees for each of registration, mortgage, and cadastral taxes.
To qualify for "prima casa" benefits in Milan, buyers must establish residency in the municipality within 18 months of purchase, cannot own other properties bought with the same benefit, and must declare their intent to the notary at the time of signing, which is why most foreign buyers who will not relocate to Italy full-time cannot access these reduced rates.
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 Milan in 2026?
How much does a notary or conveyancing lawyer cost in Milan in 2026?
As of early 2026, notary fees in Milan typically range from €2,000 to €6,000 ($2,150 to $6,450 USD) for the professional component, with costs increasing for higher-value properties or complex cases involving foreign documentation, powers of attorney, or building compliance issues.
Notary fees in Milan are generally charged as a combination of a percentage-based component (roughly 0.8% to 1.5% of the property price as a planning estimate) plus fixed administrative items, rather than a pure flat rate or pure percentage.
Translation and interpreter services for foreign buyers in Milan typically cost €150 to €400 ($160 to $430 USD) for in-person interpreting at the signing meeting, plus €20 to €40 per page for certified document translations.
A tax advisor in Milan is not strictly required for a simple personal purchase, but if you are uncertain about "prima casa" eligibility, plan to rent out the property, or have cross-border tax residency complexity, budgeting €300 to €1,200 ($325 to $1,300 USD) for focused advisory services is worthwhile.
We have a whole part dedicated to these topics in our our real estate pack about Milan.
What's the typical real estate agent fee in Milan in 2026?
As of early 2026, the typical real estate agent fee for buyers in Milan is 3% to 4% of the purchase price plus 22% VAT on that commission, which works out to roughly 3.66% to 4.88% all-in, meaning on a €500,000 apartment you would pay €18,300 to €24,400 ($19,700 to $26,300 USD) to the agency.
In Milan, both the buyer and the seller typically pay separate agency commissions, which surprises many foreign buyers who assume only the seller covers this cost as is common in other countries.
The realistic range for buyer-side agent fees in Milan runs from about 2% plus VAT on the low end (if you negotiate hard or use a discount agency) up to 5% plus VAT on the high end for premium international brokerages operating in central Milan neighborhoods like Quadrilatero della Moda or Citylife.
How much do legal checks cost (title, liens, permits) in Milan?
Legal checks in Milan including title search, liens verification, and basic cadastral review typically cost €200 to €600 ($215 to $645 USD), while deeper urban planning and permit compliance reviews, which are especially important in Milan's older building stock, can run €600 to €2,000 ($645 to $2,150 USD) depending on complexity.
Property valuation fees in Milan, whether for a bank mortgage appraisal or an independent assessment, generally cost €300 to €800 ($325 to $860 USD) for standard residential properties.
The most critical legal check that should never be skipped in Milan is the urban planning and building permit compliance review, because many older apartments in neighborhoods like Porta Venezia, Isola, or Città Studi have had modifications over the decades that may not be properly documented, and inheriting these irregularities can become your expensive problem after purchase.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Milan.
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What hidden or surprise costs should I watch for in Milan right now?
What are the most common unexpected fees buyers discover in Milan?
The most common unexpected fees buyers discover in Milan include the buyer-side agency commission (many foreigners assume only sellers pay), condominium extraordinary maintenance assessments that can create large one-off bills, building compliance or regularization costs if past renovations were not properly permitted, and utility activation deposits especially for non-residents.
Yes, buyers in Milan can inherit unpaid property taxes or condominium debts attached to the property if these are not properly identified and settled at closing, which is why you need written confirmation from the condo administrator and thorough notary-led checks before completing the purchase.
Scams in Milan's property market most commonly involve pressure to pay reservation deposits to unofficial accounts before proper paperwork is in place, so you should only pay deposits under clear contractual terms and through traceable channels vetted by your notary or lawyer.
Fees that are usually not disclosed upfront in Milan include condominium extraordinary works already approved but not yet billed, technical compliance remediation costs discovered during due diligence, and the 22% VAT on agency commissions when agents quote their headline percentage without mentioning the tax.
In our property pack covering the property buying process in Milan, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Milan?
Extra fees when buying a tenanted property in Milan include legal review of the existing lease contract which typically costs €200 to €800 ($215 to $860 USD), deposit transfer accounting, and potential timing costs if you need vacant possession but the lease is protected under Italian tenant rights.
When you purchase a tenanted property in Milan, you legally inherit the existing lease agreement and must honor its terms, including rent amount, duration, and termination conditions, as Italian law strongly protects sitting tenants.
Terminating an existing lease immediately after purchase in Milan is generally not possible unless the lease has a natural expiration date approaching or you can demonstrate specific legal grounds such as personal need for the property, and even then the process can take months with proper notice requirements.
A sitting tenant in Milan typically reduces the property's market value by 10% to 20% because of the reduced flexibility for the buyer, but this can also create a negotiating opportunity if you are specifically looking for an investment property with rental income already in place.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Milan.
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 Milan?
Which closing costs are negotiable in Milan right now?
Negotiable closing costs in Milan include the real estate agency commission percentage, which services the agent includes in their package, who pays for specific technical documents, and of course the property price itself which indirectly offsets your overall cost burden.
Closing costs that are fixed by law and cannot be negotiated in Milan include all government taxes (registration tax, VAT, mortgage tax, cadastral tax), the mandatory notary registration steps, and the fixed €50 or €200 tax amounts set by Italian tax schedules.
Buyers in Milan can typically negotiate agency commissions down by 0.5% to 1% from the asking rate if they push, especially in slower market periods or for higher-value properties, but taxes and notary state fees will remain exactly as prescribed by law.
Can I ask the seller to cover some closing costs in Milan?
The likelihood that a seller in Milan will agree to cover buyer closing costs is generally low for statutory taxes, but sellers sometimes agree to cover specific repairs, documentation preparation costs, or offer a price reduction that effectively compensates the buyer.
The specific costs sellers in Milan are most commonly willing to cover include outstanding condominium fees, energy certificate preparation, minor repair credits, or technical documentation costs, rather than the buyer's actual transfer taxes which are legally the buyer's obligation.
Sellers in Milan are more likely to accept covering some costs or reducing the price when the property has been on the market for a long time, when there are known issues that need resolving, or during softer market conditions with less buyer competition.
Is price bargaining common in Milan in 2026?
As of early 2026, price bargaining is common and expected in Milan's residential property market, with the typical discount from asking price running between 5% and 8% depending on property condition and how long the listing has been active.
Buyers in Milan typically negotiate €25,000 to €40,000 ($27,000 to $43,000 USD) below the asking price on a €500,000 property, with new-build or recently renovated apartments in prime areas like Porta Nuova commanding smaller discounts of 0% to 5%, while older "da ristrutturare" apartments in need of renovation often see discounts of 7% to 10%.
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What monthly, quarterly or annual costs will I pay as an owner in Milan?
What's the realistic monthly owner budget in Milan right now?
A realistic monthly owner budget in Milan for a typical apartment runs from €350 to €850 ($375 to $915 USD) excluding any mortgage payments, covering condominium fees, utilities, and a sensible maintenance reserve.
The main recurring expense categories in Milan include condominium fees (€150 to €400 per month depending on building services), utilities like electricity, gas, and water (€150 to €300 per month depending on size and usage), and a maintenance reserve of €50 to €150 per month for unexpected repairs.
The realistic low-to-high range for monthly owner costs in Milan spans from about €250 per month ($270 USD) for a small studio with basic building services in a peripheral area, up to €1,200 per month ($1,290 USD) or more for a larger apartment in a full-service building with concierge, heating, and lift in central neighborhoods like Brera or San Babila.
The monthly cost that varies the most in Milan is the condominium fee, because it depends heavily on whether your building has a concierge (portineria), central heating, lifts, gardens, and what extraordinary maintenance projects have been approved by the condo assembly.
You can see how this budget affect your gross and rental yields in Milan here.
What is the annual property tax amount in Milan in 2026?
As of early 2026, the annual property tax (IMU) in Milan for foreign owners with a second home typically ranges from €800 to €3,000 ($860 to $3,230 USD) per year for a standard apartment, plus TARI waste tax of €200 to €600 ($215 to $645 USD) per year.
The realistic low-to-high range for annual property taxes in Milan depends heavily on cadastral value and property category, with smaller apartments paying around €600 to €1,000 per year in total local taxes, while larger or more centrally located properties can pay €3,000 to €5,000 or more annually.
Property tax (IMU) in Milan is calculated based on the cadastral value of the property (rendita catastale) multiplied by specific coefficients and the municipality's rate, not on the market value or purchase price, which is why IMU bills are often lower than foreigners expect based on what they paid.
IMU exemptions in Milan apply if the property is your "abitazione principale" (primary residence where you live and have registered residency), except for luxury categories A/1, A/8, and A/9 which always pay IMU, but most foreign buyers cannot claim this exemption since they do not establish Italian residency at the property.
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 Milan in 2026?
What tax rate applies to rental income in Milan in 2026?
As of early 2026, rental income in Milan can be taxed either through standard progressive income tax (IRPEF, with rates from 23% to 43% depending on total income) or through a flat-rate substitute tax called "cedolare secca" at 10% for certain subsidized long-term contracts or 21% for standard long-term rentals.
Landlords in Milan using the cedolare secca regime cannot deduct expenses from rental income because the flat rate already accounts for costs, but those who opt for standard IRPEF taxation can deduct certain expenses and may find this more advantageous if they have significant deductible costs like renovation or mortgage interest.
The realistic effective tax rate for typical landlords in Milan after considering the available options ranges from 10% to 26% if using cedolare secca, or 23% to 43% of net rental income (after deductions) if using standard IRPEF taxation.
Foreign property owners in Milan do not pay a different rental income tax rate than Italian residents, but they must file Italian taxes on their Italian rental income and may need to coordinate with their home country's tax authority to avoid double taxation through applicable treaties.
Do I pay tax on short-term rentals in Milan in 2026?
As of early 2026, short-term rental income in Milan (rentals under 30 days, such as Airbnb) is subject to a 26% flat-rate substitute tax if you opt for cedolare secca, following changes introduced in Italy's 2024 Budget Law.
Short-term rental income in Milan is taxed at 26% under cedolare secca compared to 21% for standard long-term rentals, making short lets somewhat less tax-efficient, though platforms like Airbnb and Booking.com now withhold and remit a portion of tax directly to Italian authorities on your behalf.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Milan.
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If I sell later, what taxes and fees will I pay in Milan in 2026?
What's the total cost of selling as a % of price in Milan in 2026?
As of early 2026, the total cost of selling a residential property in Milan typically ranges from 3% to 7% of the sale price, depending on whether you use an agent, have capital gains exposure, and need any documentation or compliance work before sale.
The realistic low-to-high percentage range for selling costs in Milan runs from about 2% (if you sell privately without an agent and have no capital gains tax) to 10% or more (if you pay full agency commission, have taxable capital gains, and need technical regularization work).
The specific cost categories that make up selling expenses in Milan include real estate agent commission (typically 2% to 4% plus VAT), any capital gains tax if applicable, notary fees for the sale deed, documentation or technical regularization costs, and potentially early mortgage repayment penalties if you have outstanding financing.
The single largest contributor to selling expenses in Milan is usually the real estate agent commission, which at 3% to 4% plus 22% VAT can easily reach €15,000 to €25,000 ($16,100 to $26,900 USD) on a €500,000 sale.
What capital gains tax applies when selling in Milan in 2026?
As of early 2026, capital gains on property sales in Milan can be taxed at a 26% substitute tax rate that the seller can request the notary to apply at the time of sale, or alternatively included in the seller's annual income tax return at progressive IRPEF rates.
Exemptions to capital gains tax in Milan include selling a property that has been your primary residence for the majority of the ownership period, or selling any property more than five years after purchase, in which case no capital gains tax applies regardless of profit.
Foreigners selling property in Milan do not pay extra taxes or a different capital gains rate than Italian residents, though they must still comply with Italian tax filing requirements and may need to consider treaty provisions with their home country to avoid double taxation.
The capital gain in Milan is calculated as the sale price minus the original purchase price plus documented improvement costs, with the option to apply the 26% substitute tax on this difference or to declare it as ordinary income subject to progressive rates.
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 Milan, 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 - Home Purchase Taxes | Italy's official tax authority explaining exact taxes due on home purchases. | We used it as the backbone for transfer tax rates, VAT cases, and fixed fee amounts. We also referenced the minimum €1,000 rule for registration tax. |
| Consiglio Nazionale del Notariato | The national professional body for Italian notaries who execute deeds. | We used it to validate the tax collection flow and mandatory closing items. We also referenced it for the fixed-tax breakdown in VAT purchases. |
| Comune di Milano - IMU | Milan's official municipal portal for local property tax. | We used it to anchor annual ownership costs and Milan-specific IMU administration. We also cross-checked local exemption rules against national guidance. |
| Ministero dell'Economia e delle Finanze - IMU | The Ministry of Economy's official tax guidance for IMU nationwide. | We used it to confirm the main home exemption rule and luxury category exceptions. We explained why foreign buyers often must budget for IMU. |
| Agenzia delle Entrate - Short-Term Rentals | The tax authority's official rule page for short-term rentals. | We used it to confirm the 26% cedolare secca rate for short-term rentals. We quantified rental tax budgeting for foreigners renting out in Milan. |
| Agenzia delle Entrate - Capital Gains | The tax authority's official explanation of property sale taxation. | We used it to confirm the optional 26% substitute tax applied via the notary. We estimated future selling tax exposure for Milan property owners. |
| Banca d'Italia - Housing Market Survey | Italy's central bank publishing survey-based housing market indicators. | We used it to support negotiation dynamics and discount margin analysis. We triangulated bargaining ranges with market operator data. |
| Gruppo Tecnocasa - Market Report | A large national brokerage network publishing quantified market research. | We used its measured average discount data to estimate negotiation margins. We anchored bargaining assumptions for early 2026 purchases. |
| Tecnocasa - Discount Press Note | A dated press release with quantified discount metrics close to early 2026. | We used it as the freshest check on discount levels going into 2026. We justified typical negotiation ranges rather than guessing. |
| Engel & Völkers Italy | A major international brokerage with transparent consumer guidance. | We used it to validate how agency commissions work in Italy. We supported Milan budgeting ranges for agent fees alongside local practice. |
| Comune di Milano - TARI | Milan's official guidance for the municipal waste tax. | We used it to explain what TARI is and who pays it. We turned it into a realistic annual owner running cost line item for Milan. |
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