Updated as of October 1, 2022
RESIDENCE IN ANOTHER MEMBER STATE – PURCHASE AND SALE OF REAL ESTATE, INCLUDING ANY CONDITIONS OR OBLIGATIONS RELATING TO TAXATION, OWNERSHIP OR USE OF SUCH PROPERTY,
INCLUDING ITS USE AS A SECONDARY RESIDENCE
In Italy, if you are a citizen of the European Union, there are no special conditions for the purchase and sale of real estate.
● Procedure for the purchase of a property
The offer consists of the purchase proposal, i.e. the declaration whereby, as a purchaser, you express the intention of buying a certain asset at a certain price. You will have to put this in writing and, having signed, must honour the resulting commitments.
For further information, please consult the section dealing with the purchase proposal
● Procedure for the sale of a property
As vendor, after receiving a purchase proposal you are free to evaluate other offers. An offer will be binding for you when you accept it in writing and sign it. Once accepted, the purchase proposal is automatically converted into a preliminary contract. The preliminary contract (also called a “compromesso”) is a fully-fledged contract that obliges both parties to sign the definitive contract.
For further information, please consult the sections on:
● the purchase proposal
● the preliminary contract
For the purchase or sale of a property you will need to involve a notary. The choice of the notary is absolutely free and is up to the purchaser.
For further information, please refer to the section dealing with:
You can also involve a real estate agency, duly registered with the Companies Registry or the Administrative Economic Registry at the Chamber of Commerce.
The taxes applicable to real estate transactions are:
● the registration tax
● mortgage and cadastral taxes.
The purchase and sale of residential properties by construction or renovation companies, with the exception of special cases, is subject to VAT.
For further information, please refer to the section relating to
As a vendor you are not subject to any tax arising from the sale itself.
The tax on real estate capital gains, if payable based on your tax residence, is an income tax and is determined, under the conditions provided for by the relevant rules, when a property purchased at a given price is sold at a higher price. It is possible to pay a substitute tax on real estate capital gains, which can be paid, at the request of the vendor, directly into the hands of the notary at the time the deed is signed; for residential buildings, the substitute tax for capital gains is 26 percent.
If you are the owner of a property you must pay the following rates and taxes:
● combined council rates (IMU),
● rubbish collection tax (TARI).
If you purchased the property with tax breaks as a first home buyer, the only tax to be paid is the TARI.
Normative references
Article 1470 et seq. of the Civil Code
Law no. 89/1913
Presidential Decree no. 131/1986
Legislative Decree no. 347/1990
Presidential Decree no. 633/1972
Articles 67 and 68 of Presidential Decree no. 917/1986
