Italy’s Transfer Taxes When You Buy a Property
Navigating the Italian property market offers incentives for buyers. When buying from a private seller, the sale is VAT-free, with buyers paying a one-time transfer tax, roughly 5% of the sale price. Residency changes can reduce this to 2%, and buyers under 35 have additional tax breaks until December 2022. Purchasing from builders incurs a 4%-22% VAT, depending on property type and buyer’s residency. Yearly property taxes apply, but primary non-luxury home residents can be exempt. Retirees abroad can access a 50% property tax reduction. Different rules apply for land or commercial spaces, and selling also has its tax intricacies.