Purchase tax (Imposta di Registro)
When buying property from a private individual, the rate is 2% of the cadastral value for a first home (prima casa) or 9% for subsequent properties. When buying from a developer, VAT of 4% or 10% applies.
IMU — property tax
IMU (Imposta Municipale Unica) is an annual property tax paid to the municipality. The primary residence (prima casa) is exempt from IMU unless it is a luxury property. For second homes, the rate ranges from 0.76% to 1.06% of the cadastral value.
TARI — waste collection fee
TARI is a local waste management fee. Its amount depends on the property size and number of residents. A typical cost is EUR 200-500 per year.
Notarial and registration costs
The notary's fee ranges from EUR 1,500 to 3,000 depending on the transaction value. Additionally, a mortgage tax (EUR 50) and cadastral tax (EUR 50) are payable when purchasing a prima casa.
The 'prima casa' relief
Foreigners can benefit from the prima casa relief if they transfer their residence to Italy within 18 months of purchase. This reduces the purchase tax from 9% to 2% and exempts from IMU.