The purchase or sale of a dwelling in Italy triggers a mix of indirect taxes, fixed fees and procedural steps that depend on the nature of the property and the parties involved. Before signing, it helps to grasp the basic distinction: some transfers are subject to VAT (IVA) while others are
taxed with the registration tax. Understanding the alternativity IVA/registro and the roles of seller and buyer avoids surprises at the notary and clarifies the amounts due at closing.
This article explains how the seller’s profile, the buyer’s status and recent rules on donated and inherited homes change the tax treatment. It also summarizes key figures—such as the applicable VAT rates, the proportional rates for the
imposta di registro and the typical fixed charges for cadastral and mortgage registration—so you can ask the right questions before the deed.
How the seller determines the tax regime
If the vendor is a building company or a firm that carried out renovation work, the sale may fall under VAT rules rather than the registration tax. In practice, real estate firms that sell within five years
from completion normally apply IVA, unless a specific option or exemption applies. By contrast, sales from a private individual or an entity exempt from VAT will generally be taxed with the imposta di registro on a proportional basis. Always check the deed to confirm whether the parties elected to apply VAT, because that choice also changes the values of the accessory fees for registry, mortgage and cadastral annotations.
Rates, fixed fees and first‑home relief
When VAT is due the applicable percentages depend on the type of dwelling: 4% for buyers who satisfy the first‑home requirements and for non‑luxury residences acquired under that benefit, 10% for ordinary non‑luxury homes when first‑home conditions do not apply, and 22% for luxury properties (categories A/1, A/8, A/9). If the transfer is VAT‑exempt and taxed by registration, the standard rate is 9% of the declared value (with a minimum of €1,000), while first‑home eligible buyers can benefit from a reduced 2% registration rate. Accessory taxes differ: in VAT transactions accessory charges are usually fixed (for example, €200 for registration and €200 each for mortgage and cadastral duties), whereas in registration transactions the mortgage and cadastral fees are often fixed at €50 each.
Selling inherited or donated properties: special checks
Declaration of succession and inheritance taxes
When an estate includes real estate, the starting point is the declaration of succession, a mandatory telematic filing that enables the automatic request for the catastal transfer (voltura). The declaration requires documents such as the death certificate, up‑to‑date visure catastali, bank statements, and any testament copies. Inheritance taxes are levied according to kinship: for spouses and direct descendants the rate is 4% above a €1,000,000 threshold per beneficiary; siblings pay 6% above a €100,000 threshold; more distant relatives or unrelated heirs face different rates. In addition the mortgage and cadastral duties on a voltura follow standard percentages (for example, 2% and 1% in many cases) unless reduced by reliefs such as those for the first home.
Donations and the reform of donated property circulation
The legal treatment of properties that come from a donation has evolved following the Notariato’s reform, now embodied in Law 182/2026. For donations and successions occurring after 18 December 2026, the reform prevents heirs from reclaiming a property from a third‑party purchaser; instead, heirs retain a monetary claim against the donee if their reserved share was harmed. A transitional period applies for prior acts until 18 June 2026. This change increases market confidence: banks are more likely to accept donated properties as mortgage collateral and third‑party buyers face reduced litigation risk, provided that the donation was duly transcribed and no existing judicial claims are on record.
Practical checklist and professional steps
Before signing a preliminary or a deed, ask your notary for a full cost simulation including VAT (if applicable), the proportional or fixed registration charges, and any stamp duty on the preliminary agreement. Verify the seller’s status (company, renovator, private) and the completion date of works to determine the five‑year rule. If the property derives from a donation, check the date of the donation’s transcription and whether it falls within the transitional window set by Law 182/2026. Finally, consult a professional—notary, tax advisor or civil lawyer—when in doubt to prevent costly mistakes at the rogito and to secure mortgage approval.