Buying a property means budgeting beyond the sticker price: at closing you must also pay a set of statutory levies that change the real outlay. This guide walks through the three essential charges—registration tax, mortgage tax and cadastral tax—and explains the price-value alternative
that often lowers the fiscal burden. Knowing these elements ahead of the notarial deed helps avoid unpleasant surprises and lets you compare offers with an accurate net cost in mind.
We also highlight how the tax treatment differs when purchasing from an individual or from a builder/enterprise, when VAT applies instead of registration tax, and what rules must be met to qualify for first-home benefits. Throughout the article
you will find practical formulas, clear calculations and representative examples to show the real impact of each regime. The goal is to provide reliable, actionable information you can use during the purchase process.
The three core taxes in a sale
Every residential transfer typically involves three fiscal items: the registration tax, plus the mortgage tax and the cadastral tax. The registration tax is the percentage-based
levy that usually represents the largest outlay because it is calculated on an applicable tax base. The mortgage and cadastral charges are procedural fees for entry and updating of land records. For purchases between private parties by a natural person, the latter two are normally fixed at €50 each; if the sale is subject to VAT (seller is an enterprise or new construction), those items rise to €200 each.
Registration tax: first-home versus second-home
The registration tax rate depends on the property status: for the first home an advantageous rate of 2% applies, subject to a minimum of €1,000, while for a second home the standard rate is 9%, again with a minimum of €1,000. When the transaction is carried out by a builder and is subject to VAT, you do not apply the percentage-based registration tax on the agreed price; instead, VAT replaces the registration levy (commonly 4% for first homes and 10% for others) and the three registry taxes become fixed amounts of €200 each.
How the price-value method works
The price-value option allows taxes to be computed on the cadastral value rather than on the sale price, which can be considerably lower than the market figure. This choice is available only for sales between private parties when the buyer is a natural person, and it must be explicitly requested at the notary before signing the deed. Typical savings range from about 30% to 40% compared with taxes calculated on the full purchase price. In addition, choosing the price-value route can reduce notary fees—often by up to 30%—because notarial work and taxes are lower on the reduced base.
Determining the cadastral value
To compute the cadastral value start from the official cadastral income (rendita catastale): increase that figure by 5% and then multiply by a category coefficient. The multiplier commonly used is 110 for the first home and 120 for the second home. For example, the formula is: cadastral value = cadastral income x 1.05 x coefficient. It is essential to instruct the notary to apply the price-value calculation; otherwise, taxes will be computed on the contractual price.
Illustrative examples and practical constraints
Example 1 (first home, private sale): apartment in Rome sold for €250,000 with a cadastral income of €900. Cadastral value = 900 x 1.05 x 110 = €103,950. Registration tax at 2% = €2,079, plus €50 mortgage and €50 cadastral, total €2,179. If taxes were calculated on the contract price instead, the registration duty alone would be materially higher (roughly €5,000 in comparable cases), illustrating the saving from the price-value choice. Example 2 (second home, private sale): same apartment and income, but coefficient 120 gives cadastral value = 900 x 1.05 x 120 = €113,400; registration tax at 9% = €10,206, plus €50 + €50 yields €10,306.
Example 3 (purchase from a builder): new flat in Turin priced at €280,000 with first-home VAT of 4% = €11,200, plus fixed registry, mortgage and cadastral charges of €200 each (total €600), so the fiscal outlay is approximately €11,800. Note that in certain employment situations a portion of the VAT may be recoverable through tax returns. Be aware of eligibility rules for the first-home deduction: you must not already own a dwelling in the same municipality, you cannot have benefited from previous first-home relief unless you sell within 12 months, you must move your residence to the municipality within 18 months, and the property must not be classified as A/1, A/8 or A/9. The Under 36 benefit expired in 2026 and was not renewed in the 2026 Budget.
Resale and penalties
If you sell the property within five years after acquiring it with the first-home benefit, the tax authority may request repayment of the differential tax plus interest and penalties, unless you purchase another principal residence within 12 months. For sellers, integrated digital platforms that combine local agents and technology can manage valuation, visits and negotiation and may propose fee structures that protect the net price achieved; if you want full-service support, discuss options with a provider you trust and verify contract terms before listing.
Before finalizing a purchase, ask the notary to run both scenarios—taxes on the contractual price and taxes under the price-value method—so you can compare net costs. Accurate planning and the right procedural choices at the notary can make a substantial difference in what you actually pay to become a homeowner.