Disclaimer: The content on this post was first published in 2007 and is provided for historical informational purposes only. Updated tax information coming soon!
- IMPOSTA DI REGISTRO variable*
- IMPOSTA CATASTALE 2%
- IMPOSTA IPOTECARIA 1%
- Notary's fees calculated on a sliding scale (approx. from euro 1,400.00 upwards for a declared value of euro 50,000.00)
- Other miscellaneous fees for registration and recording of the deed - approx. euro 250.00
- Translation of deed of sale and presence of trained interpreter with notary – approx. euro 260.00
Imposta di registro:
- If you are buying your first home in Italy there is a tax incentive. You pay only 3% + a fixed rate of euro 129.11 for each of the remaining two taxes detailed above (you need to take up residency in Italy and have 18 months from the time of completion of the purchase to register this change). Otherwise, on all residential buildings you pay 7%; 15% is payable on land registered at the NCT (rural land registry); 8% is payable on land registered at the NCEU (the urban land registry) and all other non-residential buildings.
- The reduction in tax for residents buying their first home ("agevolazione prima casa") comes with a minimum of strings attached however. If you sell your "first home" within 5 years of buying it you'll be liable to pay the difference in tax and some costs, unless you purchase a different property and transfer your residency there within 1 calendar year of selling up.
- Please note that as of 1st January 2006 with the advent of new tax laws the above taxes are paid on the land registry value, known as the "valore catastale" NOT the market value outlined in the preliminary agreement. The notary's fees, however, will be calculated on the market value declared in the deed of sale - with a 20% discount as an "incentive" to declaring the full amount. It was previously customary in Italy (this seems strange for UK and US citizens) to declare a much lower value at the deed of sale than actually paid. This new law seems to be an attempt to bring these fiscal discrepancies out into the open.
- If you sell your property within 5 years of purchase one is liable to pay 20% on the capital gain. After five years there is nothing to pay.
Italian property tax is paid annually and is called ICI "Imposta Comunale sugli Immobili" whether you are resident or not in your property (although residents' rates are heavily subsidised). It is a tax amounting to 0.4 - 0.7% of the value of your property as defined by the "catasto" land registry.
And for those of you who sell a property …within 48 hours of the public deed of sale you must present at the relevant comune a signed declaration of transfer of the property indicating complete information about the buyer (a copy of their passport will do!)