Yes, Italy has property taxes — several, in fact, and they apply at different points: when you buy, every year you own the property, if you rent it out, and if you eventually sell. None of them are unusual by international standards, but knowing the full picture upfront avoids surprises.
Taxes when you buy
Buying from a private seller, the main cost is the registration tax (imposta di registro): 9% of the property’s cadastral value for a second home (minimum €1,000), plus fixed mortgage and cadastral taxes of €50 each. Buying new from a construction company works differently — VAT applies instead, and the registration, mortgage, and cadastral taxes each become a flat €200.
Taxes you pay every year: IMU and TARI
IMU (Imposta Municipale Unica) is Italy’s main annual property tax. Your primary, non-luxury residence is exempt. Any second home is taxed at a standard rate of 0.86% of the revalued cadastral value, though individual municipalities can set their own rate between 0.46% and 1.06% — city centers like Rome or Milan tend to apply the higher end. IMU is paid in two installments, June 16 and December 16. On top of IMU, TARI (the municipal waste tax) applies to whoever occupies the property, based on size and local rates.
Taxes if you rent the property out
Rental income can be taxed at ordinary progressive income tax rates, or through cedolare secca, a flat substitute tax most owners prefer for its simplicity. As of the current 2026 rules, cedolare secca on short-term rentals is 21% on your first rented property and 26% from the second property onward — and a private individual can manage a maximum of two properties this way before short-term rental activity has to be registered as a business.
Taxes when you sell
If you sell more than five years after buying, or the property was your main residence for most of your ownership, any gain is tax-free. Outside those cases, you can choose between ordinary progressive taxation or a flat 26% substitute tax paid directly to the notary at closing — documented costs (registration tax, notary fees, agency commission, renovation invoices) reduce the taxable gain, so keeping records matters.
How Dimora Realty keeps this manageableCome Dimora Realty rende tutto questo gestibile
None of this needs to be tracked manually, especially from abroad. Our Administrative & Legal Services team coordinates the notary, tax filings, and documentation at every stage of a purchase or sale, so nothing gets missed. Once you own the property, Property Management keeps rental income, cedolare secca filings, and ongoing obligations on schedule, with transparent reporting — so you always know exactly where things stand, wherever you happen to be.
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