Buying a home in Italy means more than agreeing a sale price: buyers must also budget for multiple taxes and choose between different fiscal regimes. This article outlines the most relevant charges you will meet at the deed — the registration tax, the mortgage tax
and the cadastral tax — and explains how these vary if you acquire from a private seller or from a building company subject to VAT (IVA). It also presents the price-value option, how to compute the cadastral value, and concrete calculations that show where savings can be made.
Throughout the text you will find clear definitions and worked examples aimed at individuals buying from private sellers or developers. Key technical
terms appear in bold and definitions in italics so you can quickly spot the elements that affect tax bills. The guidance preserves all legal conditions and practical warnings, including timing rules and consequences of selling too soon. If you plan a purchase, use this as a checklist before signing the preliminary contract and speaking with a notary.
Which taxes apply at the deed and how they differ
The three
core fiscal items due at closing are the registration tax, the mortgage tax (often listed as imposta ipotecaria) and the cadastral tax (often listed as imposta catastale). For purchases from private sellers, the registration tax is charged on a proportional basis: 2% of the taxable base for a qualifying first home and 9% for a second home, each with a minimum payment of €1,000. When buying from a private party the mortgage and cadastral taxes are typically fixed at €50 each. If the sale is by a company and the transaction is subject to IVA, the VAT rates are usually 4% for first homes, 10% for most other dwellings and 22% for luxury units; in that case registration, mortgage and cadastral charges normally become fixed sums (commonly around €200 each).
Understanding the price-value mechanism and cadastral base
The price-value mechanism allows buyers who purchase from private sellers to base taxes on the cadastral value rather than the contract price. The cadastral value is calculated from the rendita catastale (the official cadastral income): first increase the rendita by 5% and then multiply by a coefficient (typically 110 for a first home and 120 for a second home). This result becomes the taxable base to which the registration tax rates are applied. To use this option the buyer must ask the notary to apply the price-value at or before the deed; it cannot be added afterwards. The practical effect is often a substantial reduction in the proportional taxes and a lower exposure during tax checks.
Worked examples to compare outcomes
Consider an apartment listed at €250,000 with a rendita catastale of €900. Using the price-value for a first home: €900 x 1.05 x 110 = €103,950. The registration tax at 2% equals €2,079; adding the typical €50 mortgage and €50 cadastral charges gives a total of €2,179. If the same purchase is treated as a second home (coefficient 120), the taxable base becomes €113,400 and the registration tax at 9% is €10,206; with the fixed charges the total reaches €10,306. For a new unit sold by a developer in Turin at €280,000 with the first-home VAT rate, the IVA at 4% equals €11,200 and fixed registry/land charges about €600, bringing the combined cost to approximately €11,800.
Eligibility, timing rules and practical recommendations
To qualify for the reduced first home treatment you must meet several conditions: not own another main residence in the same municipality, not have already benefited from the first-home concessions (unless you sell the previous property within 12 months), and commit to transferring your residence to the purchase municipality within 18 months. Properties classified as A/1, A/8 or A/9 do not qualify. Note that the Under 36 benefit expired definitively in 2026 and the 2026 Budget Law did not renew it; standard first-home rules now apply regardless of age.
Sale within five years and practical checklist
If you sell a home purchased with first-home advantages within five years, the tax authorities can demand repayment of the unpaid taxes plus penalties and interest. One exception is to buy another qualifying main residence within 12 months of the sale to maintain the benefit. Practical steps before buying: ask a notary for a full tax simulation, confirm whether the seller is a private individual or a VAT-registered company, request the price-value election if buying from a private seller, and review fees with your notary and agent — using the price-value can also reduce Notary costs by roughly 30% in many cases. Lastly, obtain written cost estimates so there are no surprises at the deed.