Owning a second home in Italy can be an attractive option, especially for those seeking a vacation retreat or an investment opportunity. As of 2026, the fiscal landscape surrounding second homes has evolved, making it essential for property owners to stay informed about their tax obligations. This article outlines the relevant
tax regulations and potential savings for second-home owners, particularly for those registered with AIRE (the Register of Italians Resident Abroad).
Defining a second home in Italy
Commonly, a second home is understood as a vacation residence. However, the Italian tax authorities have a more specific definition. A property is classified as a second home if the owner does not meet the criteria for primary residence status. This typically means that
the homeowner does not reside there permanently and thus does not qualify for certain benefits, such as exemption from the IMU (Imposta Municipale Unica).
The implications for AIRE registrants
Italians living abroad, known as AIRE registrants, can benefit from tax advantages typically reserved for primary residences without needing to change their residency status in their property’s municipality. To qualify, they must meet three essential criteria:
they must have moved abroad for work-related reasons, the property must be located in their municipality of birth or a location where they lived prior to moving, and they should have resided in Italy for at least five years before relocating. Recently, the Italian Revenue Agency confirmed that even a period spent studying abroad can count toward these residency requirements.
Understanding acquisition taxes
Buying a second home in Italy involves various taxes that vary based on the seller’s identity. One of the most significant costs comes from notary fees, which require careful calculation. When purchasing from a private individual, taxes are calculated based on the reassessed cadastral value, with a tax rate of 9% applied to this figure. This can lead to lower tax burdens compared to the market price.
Example of tax calculation
For instance, if one buys a second home priced at €200,000 with a cadastral income of €800, the reassessment of the income would result in €840. Consequently, the cadastral value would be €100,800. If the purchase is made from a real estate developer within five years of construction completion, a VAT of 10% applies to the selling price. In this case, fixed registration, mortgage, and cadastral taxes would each amount to €200.
Ongoing maintenance costs for second homes
Owning a second home entails recurring financial responsibilities, notably taxes such as IMU and TARI. The IMU is a property tax determined by rates set by individual municipalities, typically ranging from 0.86% to 1.06% of the reassessed cadastral value.
Calculating your IMU
For example, if a property has a cadastral income of €900, the IMU calculation would require a 5% reassessment, leading to a new income of €945. Multiplying this by 160 gives a taxable base of €151,200. At a rate of 1.06%, the annual tax would be approximately €1,603.92. Additionally, retirees registered with AIRE may qualify for a 50% reduction on their IMU, provided they meet specific criteria.
Taxation on rental income and potential tax benefits
If you opt to rent out your second home, any income generated will be subject to taxation. Selecting the right tax regime for rental income is vital. The cedolare secca scheme is often the most advantageous, applying a standard rate of 21% on the annual rent. However, for rental agreements with agreed-upon rates, this can drop to 10% in certain municipalities.
Tax incentives for second home ownership
Owning a second home also opens doors to various tax incentives. For instance, if the property is provided in free loan to a first-degree relative, reductions in IMU may apply. Moreover, homeowners can benefit from deductions for renovations, which can reach up to 50% on expenses up to €96,000.
As we move into 2026, understanding the tax landscape surrounding second homes in Italy becomes increasingly essential. Familiarizing yourself with these regulations and associated costs can help avoid unexpected challenges. Consulting a tax advisor may be a prudent step to optimize expenses and ensure compliance with current laws.