What are the Overall Costs of Purchasing a Property in Italy?

In summary, the overall costs of purchasing a property in Italy depends on the Stamp Duty and purchase tax rates applicable to the asset.

These costs consist primarily of property taxes, notary fees and agency fees.
As a very general indication this can be expected to amount to circa 10% to 12% of the purchase price.

Income tax is payable in Italy by all property owners on the theoretical rental income of the property during the year;
non-residents in Italy are subject to this tax only if the income exceeds a certain threshold.

IMU: Council tax (Imposta Municipale Unica) is a property tax based on the land registry value of the property and is collected by the local authority twice a year.

There is currently no Capital Gains Tax in Italy for private individuals if the disposal of a property takes place more than ve years after the purchase.

All foreign owners are advised to draw up an Italian will.

The standard IVA rate in Italy is currently 22%. This note is meant to give a very basic indication of the purchasing process and no liability is assumed as each interested person should seek local professional advice.