Country guide
Buying property in Italy as a foreigner
Rules last checked 29 October 2026 · 14 official sources · Education, not financial, tax, legal or immigration advice.
Italy lets citizens of EU and EEA countries buy property without a reciprocity check, and a foreigner lawfully residing in Italy enjoys the civil rights of citizens; other buyers living outside Italy face a reciprocity test that the notary applies case by case.
What are you doing with Italy?
Returns after tax, what is withheld, and the way out.
Italy charges 9 percent registration tax (minimum 1,000 EUR) plus 50 EUR mortgage tax and 50 EUR cadastral tax on a second home bought from a private seller, and 2 percent registration tax with first home benefits. Details
Italy's municipal property tax (IMU) has a statutory base rate of 0.86 percent for other buildings, with each municipality setting its own rate between 0 and 1.06 percent. Details
Questions people in this position often miss
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I borrow locally?Answered below
yes
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- What is changing soon?Answered below
From 1 January 2026 the flat tax for new residents is 300,000 EUR a year, with 50,000 EUR per extended family member, under the 2026 Budget Law (Law 199/2025).
Whether a purchase gives a right to live there, and what living there costs in tax.
Italy's Investor Visa does not list property purchase as a qualifying investment: it covers 2,000,000 EUR in government bonds, 500,000 EUR in company shares or bonds (250,000 EUR for innovative start ups) or 1,000,000 EUR in public interest projects. Details
Italy lets citizens of EU and EEA countries buy property without a reciprocity check, and a foreigner lawfully residing in Italy enjoys the civil rights of citizens; other buyers living outside Italy face a reciprocity test that the notary applies case by case. Details
Italy charges 9 percent registration tax (minimum 1,000 EUR) plus 50 EUR mortgage tax and 50 EUR cadastral tax on a second home bought from a private seller, and 2 percent registration tax with first home benefits. Details
Italy's municipal property tax (IMU) has a statutory base rate of 0.86 percent for other buildings, with each municipality setting its own rate between 0 and 1.06 percent. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
Italy's Investor Visa does not list property purchase as a qualifying investment: it covers 2,000,000 EUR in government bonds, 500,000 EUR in company shares or bonds (250,000 EUR for innovative start ups) or 1,000,000 EUR in public interest projects. A flat tax of 300,000 EUR a year on foreign income is open to new residents who move their tax residence from 1 January 2026.
- What happens if I die, or the family inherits?Answered below
Succession and gift tax use the same rates and allowances per beneficiary (Revenue Agency): 4 percent on value above 1,000,000 EUR for a spouse and direct line relatives; 6 percent above 100,000 EUR for siblings; 6 percent with no allowance for other relatives to the fourth degree and collateral in laws to the third degree; 8 percent with no allowance for everyone else; a 1,500,000 EUR allowance for beneficiaries with a disability entitling them to intensive support.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What is changing soon?Answered below
From 1 January 2026 the flat tax for new residents is 300,000 EUR a year, with 50,000 EUR per extended family member, under the 2026 Budget Law (Law 199/2025).
Part year stays, the yearly bill, and what the family inherits.
Italy lets citizens of EU and EEA countries buy property without a reciprocity check, and a foreigner lawfully residing in Italy enjoys the civil rights of citizens; other buyers living outside Italy face a reciprocity test that the notary applies case by case. Details
Italy's municipal property tax (IMU) has a statutory base rate of 0.86 percent for other buildings, with each municipality setting its own rate between 0 and 1.06 percent. Details
Italy's Investor Visa does not list property purchase as a qualifying investment: it covers 2,000,000 EUR in government bonds, 500,000 EUR in company shares or bonds (250,000 EUR for innovative start ups) or 1,000,000 EUR in public interest projects. Details
Italy charges 9 percent registration tax (minimum 1,000 EUR) plus 50 EUR mortgage tax and 50 EUR cadastral tax on a second home bought from a private seller, and 2 percent registration tax with first home benefits. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
Italy's Investor Visa does not list property purchase as a qualifying investment: it covers 2,000,000 EUR in government bonds, 500,000 EUR in company shares or bonds (250,000 EUR for innovative start ups) or 1,000,000 EUR in public interest projects. A flat tax of 300,000 EUR a year on foreign income is open to new residents who move their tax residence from 1 January 2026.
- What happens if I die, or the family inherits?Answered below
Succession and gift tax use the same rates and allowances per beneficiary (Revenue Agency): 4 percent on value above 1,000,000 EUR for a spouse and direct line relatives; 6 percent above 100,000 EUR for siblings; 6 percent with no allowance for other relatives to the fourth degree and collateral in laws to the third degree; 8 percent with no allowance for everyone else; a 1,500,000 EUR allowance for beneficiaries with a disability entitling them to intensive support.
- What is owed every year, even if the home sits empty?Answered below
Italy's municipal property tax (IMU) has a statutory base rate of 0.86 percent for other buildings, with each municipality setting its own rate between 0 and 1.06 percent. A main residence in category A/2 to A/7 is exempt, and a property owned by someone living abroad is not a main residence.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
What is owed each year, on rent and on a sale, and what the heirs face.
Italy's municipal property tax (IMU) has a statutory base rate of 0.86 percent for other buildings, with each municipality setting its own rate between 0 and 1.06 percent. Details
Italy charges 9 percent registration tax (minimum 1,000 EUR) plus 50 EUR mortgage tax and 50 EUR cadastral tax on a second home bought from a private seller, and 2 percent registration tax with first home benefits. Details
Questions people in this position often miss
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What happens if I die, or the family inherits?Answered below
Succession and gift tax use the same rates and allowances per beneficiary (Revenue Agency): 4 percent on value above 1,000,000 EUR for a spouse and direct line relatives; 6 percent above 100,000 EUR for siblings; 6 percent with no allowance for other relatives to the fourth degree and collateral in laws to the third degree; 8 percent with no allowance for everyone else; a 1,500,000 EUR allowance for beneficiaries with a disability entitling them to intensive support.
- What happens when I sell?Answered below
Italy taxes a gain on property sold within five years of purchase, construction or donation, and the seller may ask the notary to apply a 26 percent substitute tax on the gain. Inherited property and a home used as main residence for most of the holding period are excluded.
- What is changing soon?Answered below
From 1 January 2026 the flat tax for new residents is 300,000 EUR a year, with 50,000 EUR per extended family member, under the 2026 Budget Law (Law 199/2025).
Who may buy
Choose a nationality to see the rules that apply to it.
Every rule, for every buyer
| Buyer | Property | Reading | Conditions |
|---|---|---|---|
| Nationals of EU member states and European Economic Area states | Any property | Open | Citizens of EU Member States and EEA countries (Iceland, Liechtenstein, Norway), including legal persons, are treated as Italian citizens for civil rights and need no reciprocity check. The Immigration Consolidated Act (Legislative Decree 286/1998) governs citizens of States outside the EU and stateless persons, which leaves EU nationals outside its reciprocity provisions. |
| Everyone else (not EU member states and European Economic Area states), living there | Any property | Open | Article 2(2) of Legislative Decree 286/1998: a foreigner lawfully residing in Italy (regolarmente soggiornante) enjoys the civil rights attributed to Italian citizens, unless an international convention or the Act itself provides otherwise; where reciprocity is required it is established under the implementing regulation. |
| Everyone else (not EU member states and European Economic Area states), living elsewhere | Any property | Conditions apply | Article 16 of the preliminary provisions to the Civil Code (Royal Decree 262 of 16 March 1942) admits foreigners to the civil rights attributed to citizens on condition of reciprocity and subject to special laws. In practice the notary checks reciprocity case by case, legislative or substantive, and the outcome can differ for purchase and for inheritance. |
What it costs to buy
Registration tax (imposta di registro), purchase from a private seller or VAT exempt seller, not first home
- Rate
9 percent of the taxable value, minimum 1,000 EUR; mortgage tax 50 EUR and cadastral tax 50 EUR fixed. The notary pays the taxes on registration of the deed.
Registration tax, first home benefits (prima casa), private seller
- Rate
2 percent instead of 9, minimum 1,000 EUR; 50 EUR mortgage and 50 EUR cadastral. The property must be outside categories A/1, A/8 and A/9 and in the municipality where the buyer has or will set residence or works; the buyer must not own another home in that municipality or hold rights over another home bought with the benefit elsewhere in Italy.
Purchase from a VAT registered seller (builder or restorer within five years of completion, or by election)
- Rate
VAT 10 percent (22 percent for A/1, A/8, A/9), or 4 percent with first home benefits; registration, mortgage and cadastral taxes fixed at 200 EUR each. Sales of residential buildings by companies are otherwise VAT exempt as a general rule.
What an owner pays each year
IMU (municipal property tax)
- Rate
- Statutory base rate 0.86 percent for other buildings (municipal range 0 to 1.06 percent), 0.5 percent for main residences in A/1, A/8, A/9 with a 200 EUR deduction.
- Main residences in A/2 to A/7 are exempt.
- Municipalities set the actual rate each year.
- If the owner lives elsewhere
A property owned by a non resident is not a main residence, so the exemption does not apply to it.
Key numbers (1)
| IMU statutory base rate for other buildings (municipalities set the actual rate) | 0.86% |
|---|
What if I own it and let it out?
Yearly taxes on owning
- IMU, municipal property taxEUR 0 to 5,300Charged on the taxable base of the property, which is its cadastral income revalued by law, not its price. Statutory base rate 0.86% for buildings other than a main home, which each municipality sets between 0% and 1.06%, so the result is a range. A main home in categories A/2 to A/7 is exempt.
Total under the rules shown (a year)EUR 0 to 5,300
A planning figure under the rules shown, not advice. Rates set by councils, reliefs, treaties and the owner's own circumstances can change it, and income tax on rent is usually settled on a return.
Rent from the property
Tax on rent
- General rule
- Italy's flat tax on residential rent (cedolare secca) is 21 percent, or 10 percent for agreed rent contracts; the registration and stamp taxes on the lease are not due.
- Short lets: 21 percent on the income from one unit chosen in the return, 26 percent on the second.
- From the 2026 tax year the flat tax on short lets applies only if no more than two apartments are used for this purpose in the year (previously four); above that the activity is treated as a business.
- Law 199/2025 article 1 paragraph 17 made that change.
- Filing
The option is made on registering the contract or in the annual return.
Key numbers (5)
| Flat tax on residential rent | 21% |
|---|---|
| Flat tax on agreed rent contracts | 10% |
| Flat tax on short let income, one unit chosen in the return | 21% |
| Flat tax on short let income, second unit | 26% |
| Maximum apartments for the short let flat tax from the 2026 tax yearfrom 1 January 2026 | apartments 2 |
Selling
Tax on a sale
- General rule
Gains on property sold within five years of purchase, construction or (from the donor's purchase date) donation are taxable; the seller may ask the notary at the deed to apply a 26 percent substitute tax on the gain.
- Exemptions
The substitute tax does not apply to gains from business or professional activity. Inherited property and homes used as main residence for most of the holding period are excluded under article 67 of the Income Tax Code.
Key numbers (1)
| Substitute tax on property gains, on request to the notary | 26% |
|---|
What if I sell?
Gain (sale price less purchase price)EUR 100,000
Tax on the sale
- Substitute tax on a gain within five yearsEUR 26,000Charged on the gain: the sale price less the purchase price. A gain on property sold within five years of purchase is taxable, and the seller may ask the notary to apply a 26 percent substitute tax. A home used as the main residence for most of the holding period and inherited property are excluded. After five years the tax in this model does not apply.
Total under the rules shownEUR 26,000
A planning figure under the rules shown, not advice. Costs of buying and selling, improvements, reliefs for a home lived in, treaties and the owner's own circumstances can change it, and tax on a gain is usually settled on a return.
Inheritance and gifts
Inheritance and gift tax
- Summary
Succession and gift tax use the same rates and allowances per beneficiary (Revenue Agency):
- 4 percent on value above 1,000,000 EUR for a spouse and direct line relatives
- 6 percent above 100,000 EUR for siblings
- 6 percent with no allowance for other relatives to the fourth degree and collateral in laws to the third degree
- 8 percent with no allowance for everyone else
- a 1,500,000 EUR allowance for beneficiaries with a disability entitling them to intensive support
Key numbers (7)
| Succession and gift tax, spouse and direct line, above allowance | 4% |
|---|---|
| Allowance per beneficiary, spouse and direct line | EUR 1,000,000 |
| Succession and gift tax, siblings, above allowance | 6% |
| Allowance per beneficiary, siblings | EUR 100,000 |
| Succession and gift tax, other relatives to the fourth degree and in laws, no allowance | 6% |
| Succession and gift tax, all other beneficiaries, no allowance | 8% |
| Allowance for a beneficiary with a disability entitling to intensive support | EUR 1,500,000 |
From your country
The country of the property is only half of it. The country where you live can limit the money you send, tax the same rent and gain again, and ask for forms of its own.
Choose where you live to see what your own country does when you buy in Italy.
Residence through property
Investor Visa for Italy
- Threshold
- For non EU nationals: at least 2,000,000 EUR in Italian government bonds; 500,000 EUR in Italian company shares or corporate bonds (250,000 EUR for innovative start ups); or 1,000,000 EUR in projects of public interest (culture, education, ecology, immigration management, research, heritage).
- A nulla osta from the Investor Visa for Italy Committee is required.
- Property purchase is not a listed category.
- Status
open
Flat tax regime for new residents (article 24 bis TUIR)
- Threshold
Substitute tax on foreign income of 300,000 EUR per year for those who move tax residence from 1 January 2026 (200,000 EUR before), and 50,000 EUR per extended family member (25,000 EUR before), under Law 199/2025 article 1 paragraphs 25 and 26. Requires non residence in at least 9 of the previous 10 tax years; effects end after 15 years; optional prior ruling request; paid by F24 code NRPP.
- Status
open
7 percent regime for foreign pensioners moving to the south (article 24 ter TUIR)
- Threshold
7 percent substitute tax on foreign source income for nine tax periods, for people receiving foreign paid pensions who move residence to a municipality of up to 30,000 inhabitants in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia, plus certain earthquake affected municipalities.
- Status
open
Key numbers (4)
| Investor Visa, government bonds | EUR 2,000,000 |
|---|---|
| Investor Visa, company shares or corporate bonds | EUR 500,000 |
| Investor Visa, innovative start up | EUR 250,000 |
| Investor Visa, public interest projects | EUR 1,000,000 |
Borrowing, banking and other assets
Borrowing
- Can a foreign buyer borrow locally
yes
The usual steps, in order
- Establish nationality or permit status for the reciprocity question; the notary checks it where needed.
- Agree terms in a proposal or preliminary contract, usually with a deposit; the Revenue Agency notes that tax paid on a registered deposit is credited against the final registration tax.
- The notary checks title, mortgages and cadastral data.
- If a mortgage is used, the lender values the property and the loan is generally capped at 80 percent of the appraised value; the bank retains the substitute tax from the amount paid out.
- Final deed before a notary; registration, mortgage and cadastral taxes are paid through the notary.
- Registration of the transfer and update of the cadastral records.
What is changing
- From 1 January 2026 the flat tax for new residents is 300,000 EUR a year, with 50,000 EUR per extended family member, under the 2026 Budget Law (Law 199/2025).
- From the 2026 tax year the short let flat tax is limited to two apartments a year, down from four, under Law 199/2025.
Questions people ask
What if I am not a citizen of the EU or EEA and do not live in Italy?
Italy applies a reciprocity test under article 16 of the preliminary provisions to the Civil Code, which the notary checks case by case, and the outcome can differ for a purchase and for an inheritance.
What if I live in Italy with a residence permit?
A foreigner lawfully residing in Italy enjoys the civil rights of citizens under article 2 of Legislative Decree 286/1998, so the reciprocity check is not the deciding factor.
How are taxes calculated on a second home bought from a private seller?
Registration tax is 9 percent of the taxable value with a minimum of 1,000 EUR, plus 50 EUR mortgage tax and 50 EUR cadastral tax, and the notary pays them on registration of the deed.
What if the seller is a builder charging VAT?
VAT is 10 percent (22 percent for categories A/1, A/8 and A/9, and 4 percent with first home benefits), and registration, mortgage and cadastral taxes are 200 EUR each.
What if the first home rate applies?
The registration tax is 2 percent instead of 9 percent when the property is outside categories A/1, A/8 and A/9 and in the municipality where the buyer has or will set residence or works, and the buyer owns no other home there.
How does the flat tax for new residents work from 2026?
It is a substitute tax of 300,000 EUR a year on foreign income for those who move tax residence from 1 January 2026, plus 50,000 EUR per extended family member, and it requires non residence in at least 9 of the previous 10 tax years and ends after 15 years.
How does the 7 percent regime for foreign pensioners work?
It is a 7 percent substitute tax on foreign source income for nine tax periods, for people receiving foreign paid pensions who move to a municipality of up to 30,000 inhabitants in eight southern regions.
Does buying property give a residence visa in Italy?
Not under the Investor Visa, which covers government bonds, company shares or bonds, innovative start ups and public interest projects, and does not list property purchase.
What if a property is sold within five years of purchase?
The gain is taxable, and the seller may ask the notary to apply a 26 percent substitute tax on the gain.
How are inheritance and gifts taxed in Italy?
Both use the same rates per beneficiary: 4 percent above 1,000,000 EUR for a spouse and direct line, 6 percent above 100,000 EUR for siblings, 6 percent with no allowance for other relatives and 8 percent with no allowance for everyone else.
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- The reciprocity outcome for each nationality outside the EU and EEA could not be confirmed from an official source yet.
- The list of countries whose investment treaties exempt buyers from the reciprocity test could not be confirmed from an official source yet.
- The treatment of Swiss nationals under the reciprocity rule could not be confirmed from an official source yet.
- The way the flat tax on rent and the gains tax apply to owners living outside Italy could not be confirmed from an official source yet.
- The reported ban on combining the new resident flat tax with another regime from 2027 is not stated as a rule because only secondary sources describe it.
- The succession and gift tax for a deceased person or donor living outside Italy could not be confirmed from an official source yet.
- Notary fees and mortgage terms for buyers living abroad could not be confirmed from an official source yet.
- The cadastral value coefficients for the price value rule could not be confirmed from an official source yet.
Sources
See what this does to your own numbers
Add a property in Italy next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 29 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.