Buying a house: the Taxation

Taxation on the purchase of a property in Italy varies depending on whether it is a first or second home. Here is an overview of the differences:

First home:

• Registration tax: 2% of the cadastral value of the property (instead of 9% for the other properties). For buildings in the cadastral category A1, A8 e A9, the rate is 9%.
• Mortgage dues: €50 (fixed tax).
• Cadastral tax: €50 (fixed tax).

To benefit from the tax relief for the purchase of a first home, certain requirements must be met, such as:

1. Not owning any other property in the municipality where the property to be purchased is located.

2. Not having taken advantage of benefits for the purchase of a first home in the last five years.

3. Undertaking to establish residence in the municipality where the property is located within 18 months of the purchase.

Second home:

• Registration tax: 9% of the cadastral value of the property (for buildings in the cadastral category A1, A8 e A9, the rate is 9%).
• Mortgage dues: €50 (fixed tax).
• Cadastral tax: €50 (fixed tax).

In the case of a dwelling defined as a second home, the tax benefits for the purchase of a first home are not applicable. However, if the property is purchased by a builder or renovator within 5 years of the completion of the work, VAT replaces the registration tax and is charged at a rate of 10% (or 22% for luxury buildings).

In both cases, it is important to verify the requirements and conditions for the application of the different rates and taxes, as they may vary according to the specific situation and regulations in force.