What taxes a non-resident pays when buying in Italy
Buying in Italy as a non-resident means paying, on top of the price, the transfer tax plus notary and registration costs. The amount depends on whether the seller is a private individual or a company and on whether the property is bought as a first or second home.
In short
- Essential: the codice fiscale, the Italian tax identifier. It can be obtained without residing in Italy.
- Main tax: the imposta di registro, whose base and rate vary by seller and intended use.
- Also: mortgage and cadastral taxes, notaio fees and registration.
- Second home: taxed differently from a main residence; a non-resident rarely qualifies for the prima casa regime.
- Presence: not required: the rogito accepts a power of attorney.
The codice fiscale comes first
Without a codice fiscale there is no deed. It is the Italian tax identifier and any foreigner can obtain it, resident or not, through the relevant Italian consulate or by power of attorney granted to a professional in Italy. It is free, and it is worth starting the process as soon as a purchase begins to take shape, because the timeline can affect the calendar.
Which taxes are paid on the purchase
The bulk is the imposta di registro, the transfer tax. Its calculation depends on two variables: who sells — a private individual or a construction company — and what the purpose of the purchase is. On top of that come the imposta ipotecaria and the imposta catastale, smaller in amount, plus notaio fees and registration.
One Italian particularity worth knowing: in purchases between private individuals for residential use it is common to apply the prezzo-valore mechanism, which calculates the tax on the revalued cadastral value rather than on the price paid. Since the cadastral value tends to be lower than the market price, the result can noticeably reduce the tax bill.
First home or second: why it changes so much
The prima casa regime applies reduced rates, but requires conditions — among them establishing residence in the municipality within a set period — that a non-resident buyer purchasing to rent normally neither meets nor wants to meet. The realistic approach is to budget the deal under the ordinary second-home regime.
After buying: the annual taxes
Ownership creates recurring obligations: IMU, the municipal tax on second homes, and taxation of rental income, which can opt into the cedolare secca regime — a flat substitute rate — where the requirements are met. On top of that comes taxation in your country of tax residence.
Short lets depend on the municipality
If the investment thesis runs through short-stay rental, check it before buying rather than after: the rules vary by comune and range from mandatory registration of the accommodation to limits on days or units. It is one of the points we review in due diligence.
Frequently asked questions
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