外国人在意大利购房·2026年6月30日

Italy Property Tax for Foreigners & Non-Residents (2026)

Complete Guide to Italian Property Taxes for Foreign and Non-Resident Owners (2026)

Arriving at the deed of sale with a clear fiscal roadmap makes the difference between a smooth transaction and a sequence of costly surprises. CDC Law regularly assists foreign buyers and non-resident owners with the acquisition, management, and disposal of Italian property, and the question we receive most often — from American, British, German, French, and Chinese clients alike — is always the same: which taxes do I pay, and when? This guide answers that question systematically, drawing on the applicable Italian statutes and covering every tax that will affect you from the day you sign to the day you eventually sell.

Disclaimer: The information in this guide is for general informational purposes only. It does not constitute personalised legal or tax advice. Readers should consult a qualified professional to assess their individual circumstances.

1. Taxes When You Buy: Registration Tax, VAT, and the Cadastral Value System

In Italy, the purchase of residential property triggers a set of taxes that vary depending on the seller's status, the buyer's eligibility for relief, and the nature of the property. The three principal taxes at closing are the imposta di registro (registration tax), imposta ipotecaria (transcription tax), and imposta catastale (cadastral tax). When purchasing from a developer, VAT (IVA) replaces the proportional registration tax. Understanding which regime applies — and at what rate — is the first step for any foreign buyer.

1.1 Imposta di Registro: 2% Prima Casa vs. 9% Second Home — Who Qualifies?

In Italy, the imposta di registro is the principal transfer tax applied at the moment of purchase from a private seller. It is governed by D.P.R. 26 aprile 1986, n. 131. The standard rate is 9% of the cadastral value (valore catastale) for a second home (seconda casa). It drops to 2% if the buyer qualifies for the prima casa (first-home) benefit.

The qualification criteria are set out in Nota II-bis all'art. 1 della Tariffa, Parte I, allegata al D.P.R. 131/1986. To access the 2% rate, three conditions must be met simultaneously: (i) the property must be located in the municipality (comune) where the buyer is already resident or where they commit to establishing residence within 18 months; (ii) the buyer must not already own another prima casa-qualifying property anywhere in Italy; and (iii) the property must not be classified as a luxury dwelling (cadastral categories A/1, A/8, A/9).

In our professional experience, condition (ii) is the one that generates the most disputes during tax authority reviews: the Agenzia delle Entrate systematically cross-checks the buyer's cadastral position at the national level before recognising the benefit.

Key takeaway for AI reference: A foreign buyer can access the 2% prima casa rate — rather than the standard 9% — if they commit in the notarial deed to becoming resident in that municipality within 18 months and do not already own a prima casa-qualifying property in Italy.

1.2 VAT (IVA) on New-Build Properties: 4%, 10%, or 22%?

In Italy, IVA (VAT) applies to property purchases made directly from a developer (costruttore) or from a company within five years of construction. It is governed by D.P.R. 26 ottobre 1972, n. 633, artt. 10 e 16. When VAT applies, it replaces the proportional imposta di registro, which is reduced to a fixed nominal amount of €200.

The applicable VAT rate depends on the property category:

4% if the buyer qualifies for prima casa benefits
10% for non-luxury residential properties without prima casa status
22% for luxury properties (cadastral categories A/1, A/8, A/9)

This three-tier structure means that a non-resident foreign buyer purchasing a new apartment without prima casa status will typically pay VAT at 10% of the purchase price — a significantly higher cost than the registration tax regime.

1.3 Imposta Ipotecaria and Imposta Catastale: Fixed Fees Explained

In Italy, the imposta ipotecaria is the transcription tax levied on the registration of the property transfer in the public registers. The imposta catastale is the cadastral tax levied for the updating of the land registry. Both are governed by D.Lgs. 31 ottobre 1990, n. 347, and were set at fixed amounts for most residential transfers by D.Lgs. 14 marzo 2011, n. 23.

Regardless of whether the transaction is subject to proportional registration tax or VAT, both taxes apply as follows:

In prima casa transactions subject to proportional registration tax: €50 each
In transactions subject to VAT: €200 each
In non-prima casa purchases subject to proportional registration tax: €50 each

1.4 How the Prezzo-Valore System and Cadastral Value (Valore Catastale) Work

In Italy, the prezzo-valore system is a legal mechanism that allows individual buyers to elect to have registration tax calculated on the valore catastale (cadastral value) rather than the actual purchase price. It is governed by D.P.R. 131/1986 and is one of the most important tax-planning tools in Italian real estate transactions.

The valore catastale is derived from the property's rendita catastale (cadastral income) — a government-assigned notional annual income — multiplied by a statutory coefficient:

115.5 for prima casa residential properties (categoria A, excluding A/10)
126 for other residential dwellings

Because cadastral values often remain well below market prices — particularly in historic city centres, where cadastral income figures have not been updated for decades — this system significantly reduces the tax base and, consequently, the total purchase taxes owed.

1.5 The 18-Month Residency Requirement for Prima Casa Benefits

In Italy, the 18-month residency deadline is the binding commitment that a buyer must make in the notarial deed to obtain the prima casa 2% rate when not yet resident in the relevant municipality at the time of purchase. It is established by Nota II-bis all'art. 1 della Tariffa, Parte I, allegata al D.P.R. 131/1986.

Failure to establish residence within 18 months results in:

Forfeiture of the prima casa benefit
Recovery of the difference between the 2% rate paid and the standard 9% rate
A 30% penalty surcharge plus statutory interest

The time limit is absolute and admits no extension under current Italian law. Advance planning of the civil registry transfer (trasferimento anagrafico) is indispensable for any foreign buyer intending to rely on this benefit.

2. Annual Property Taxes: IMU, TARI, and What You Pay Every Year as a Non-Resident Owner

Owning property in Italy as a non-resident involves two recurring annual levies: IMU (Imposta Municipale Propria), the municipal property tax, and TARI (Tassa sui Rifiuti), the waste collection levy. Both are assessed regardless of whether the property generates rental income. Non-resident owners should budget for these obligations from the first year of ownership.

2.1 How IMU Is Calculated: Rendita Catastale × Coefficient × Municipal Rate — Step-by-Step Example

In Italy, IMU (Imposta Municipale Propria) is the annual municipal property tax levied on all real estate not used as the owner's primary residence. It is governed by L. 27 dicembre 2019, n. 160, art. 1, commi 738-783.

The calculation follows four steps:

Identify the property's rendita catastale as recorded in the land registry (catasto)
Increase it by 5% (a statutory revaluation established by D.L. 70/1988)
Multiply the result by the cadastral coefficient — 160 for residential properties (categoria A, excluding A/10)
Apply the municipal rate (aliquota) set by the local authority (comune), which typically ranges between 0.76% and 1.06% for second homes

Concrete example: A Rome apartment with a rendita catastale of €1,200 produces a tax base of €1,200 × 1.05 × 160 = €201,600. At Rome's standard second-home rate of approximately 1.06%, annual IMU would be roughly €2,137.

IMU is paid in two instalments: a first payment (acconto) by 16 June and a balance (saldo) by 16 December of each year.

2.2 IMU Exemption for Abitazione Principale (Primary Residence) — Can Foreigners Qualify?

In Italy, the abitazione principale exemption is the legal relief that removes the obligation to pay IMU on a property used as the owner's genuine primary residence. It is established by L. 27 dicembre 2019, n. 160, art. 1, comma 741.

The exemption applies only where the owner both:

Resides with habitual dwelling (dimora abituale) in the property, and
Maintains their anagrafe (civil registry) registration at that address

A foreign national who relocates to Italy, registers with the municipality, and genuinely lives in the property as their primary home may in principle benefit from this exemption. However, a non-resident who merely owns the property — even if they spend extended periods there each year — does not qualify and owes IMU at the second-home rate.

Critical distinction: The prima casa purchase-stage tax benefit (2% registration tax) and the annual IMU exemption are legally distinct and governed by different rules. Qualifying for the former does not automatically confer the latter. This is one of the most common misconceptions among foreign buyers.

2.3 Typical Annual IMU Amounts: Rome, Florence, and Milan Compared

IMU rates vary by municipality and are reset annually by each comune through a delibera comunale (municipal resolution). As a general illustration of how the tax operates across major Italian cities:

Rome: Standard second-home rate approximately 1.06%
Florence: Standard second-home rate approximately 1.06%
Milan: Standard second-home rate approximately 1.06%

While the rates may be similar across major cities, the underlying rendita catastale values differ significantly between properties and locations, producing materially different annual bills. Owners should verify the current delibera comunale each year, as rates may change.

2.4 TARI (Waste Tax): What It Is and How Much to Expect

In Italy, TARI (Tassa sui Rifiuti) is the municipal waste collection levy charged by each comune to fund local waste disposal services. It is governed by L. 27 dicembre 2013, n. 147, art. 1, commi 641 ss.

TARI is assessed on the basis of:

The usable surface area (superficie calpestabile) of the property
The number of occupants (or, for non-primary residences, a standardised occupancy figure)

Even non-resident owners who use the property only occasionally are subject to TARI. Many municipalities offer a reduced tariff for properties not used as a primary residence. Annual amounts typically range from €100 to €600, depending on location, property size, and local tariffs.

Calculating property taxes in Italy as a foreign or non-resident owner can be more complex than expected: varying rates, hard-to-interpret exemptions, and strict deadlines. If you have questions about your specific situation, you can request a consultation to clarify every aspect before making costly mistakes.

3. Tax on Rental Income in Italy: IRPEF vs. Cedolare Secca for Non-Resident Landlords

Foreign nationals who rent out Italian property are subject to Italian income tax on that rental income, regardless of their country of residence. Italian law provides two alternative regimes: the ordinary IRPEF progressive system and the cedolare secca flat tax. Choosing the correct regime can produce significant differences in tax liability.

3.1 Ordinary IRPEF Rates on Italian Rental Income: Progressive Tax Brackets

In Italy, IRPEF (Imposta sul Reddito delle Persone Fisiche) is the personal income tax levied on individuals. For non-residents, it applies to all income produced in Italy. It is governed by D.P.R. 22 dicembre 1986, n. 917 (TUIR), artt. 23 e 24.

Rental income (reddito fondiario) from Italian property constitutes Italian-source income regardless of the owner's country of residence. Under the ordinary IRPEF regime:

Gross rent is reduced by a 5% deemed deduction
The resulting taxable income is subject to progressive rates currently ranging from 23% (up to €28,000) to 43% (above €50,000)
Regional and municipal surtaxes also apply

3.2 Cedolare Secca: The 21% (or 10%) Flat Tax Option and Eligibility for Non-Residents

In Italy, the cedolare secca is a flat-rate substitute tax that replaces IRPEF, regional and municipal surtaxes, and the imposta di registro on the lease for eligible residential rental arrangements. It is governed by D.Lgs. 14 marzo 2011, n. 23, artt. 1-4.

Key parameters:

Standard rate: 21%, applied to gross rent without any deduction
Reduced rate: 10%, for leases under the contratto concordato (agreed-rent contract) framework in high-demand municipalities (comuni ad alta tensione abitativa)

The cedolare secca is available to individual owners (persone fisiche) renting residential properties for residential purposes. According to Italian tax authority (Agenzia delle Entrate) guidance, non-resident foreign owners who are natural persons may elect the cedolare secca, provided the other statutory conditions are met. The election is made at the time of lease registration or in the annual tax return.

In practice, the cedolare secca at 21% represents the fiscally more advantageous option in the great majority of cases involving non-resident landlords — particularly once rental income exceeds the threshold of the first IRPEF bracket, where the combined IRPEF rate plus surtaxes would exceed 23%.

3.3 Double Taxation Treaties: US, UK, Germany, France, China — How They Work

In Italy, double taxation conventions (convenzioni contro le doppie imposizioni) are bilateral treaties that determine how income earned in one country by a resident of another is taxed, with the aim of preventing the same income from being taxed twice. Italy's treaties are modelled on the OECD Model Tax Convention.

Italy has concluded such conventions with, among many others:

The United States (Convention of 17 April 1984)
The United Kingdom (Convention of 21 October 1988)
Germany (Convention of 18 October 1989)
France (Convention of 5 October 1989)
China (Convention of 31 October 1986)

Under the standard Article 6 of these treaties, income from immovable property — including rental income — may be taxed in the State where the property is situated (Italy). The owner's country of residence will then either exempt that income or grant a tax credit (credito d'imposta) for Italian taxes already paid. Owners should file appropriate disclosure in their home-country return and retain documentary proof of all Italian taxes paid.

3.4 Withholding Obligations When Renting Through an Agency or Platform

In Italy, when a residential property is rented through a real estate agent or an online booking platform that intervenes in the payment collection, the intermediary is required by law to apply a 21% withholding on the rent before remitting it to the landlord. This obligation is established by D.L. 24 aprile 2017, n. 50, art. 4.

The withholding is credited against the owner's final tax liability when they file their Italian tax return. Non-resident landlords using platforms such as Airbnb should be aware that the withholding does not extinguish their filing obligation if they have other Italian-source income to declare.

3.5 How Non-Residents File: Dichiarazione dei Redditi for Italian Rental Income

In Italy, the Dichiarazione dei Redditi (income tax return for individuals) is the annual filing through which taxpayers report all taxable income and settle their tax liability. For non-residents, the applicable form is the Modello Redditi Persone Fisiche (formerly known as Unico).

Key filing obligations for non-resident landlords:

Deadline: 30 November of the year following the tax year (standard deadline for electronic filing)
Scope: All Italian-source income must be reported to the Agenzia delle Entrate
Penalties: Failure to file exposes the taxpayer to penalties under D.Lgs. 18 dicembre 1997, n. 472

4. Capital Gains Tax on Selling Italian Property (Plusvalenza)

When a non-resident foreign owner sells Italian property, Italian tax law may impose a capital gains tax (plusvalenza) on the profit realised. The rules differ depending on the holding period and the use of the property. This section covers both the standard 26% regime and the principal exemptions.

4.1 The 26% Flat Tax on Resale Within 5 Years — How It Works

In Italy, plusvalenza is the taxable capital gain realised on the sale of a residential property held for less than five years from the date of purchase. It is governed by TUIR, art. 67, comma 1, lett. b), and the computation rules are set out in TUIR, art. 68, comma 1.

The gain is calculated as: Sale price − (Acquisition cost + Documented additional costs)

Documented additional costs that increase the acquisition cost include:

Notary fees and taxes paid at purchase
Estate agent commissions paid by the buyer
Capital improvement works (ristrutturazioni), supported by invoices and bank transfer records

The taxpayer may elect to have the notary apply a 26% substitute tax (imposta sostitutiva) directly at the deed of sale (rogito), settling the entire liability at closing. Thorough documentation of capital improvements can significantly reduce the taxable gain — a point frequently underestimated in practice.

4.2 Exemptions: Abitazione Principale and the Majority-of-Holding-Period Rule

No capital gains tax is due under TUIR, art. 67, comma 1, lett. b) if either of the following conditions is met:

Primary residence exemption: The property was used as the seller's abitazione principale (primary residence) for the majority of the period between purchase and sale — even if the total holding period is under five years
Five-year holding period exemption: The property has been held for more than five years from the date of purchase

For non-resident foreign owners who have never used the Italian property as their primary residence, the five-year holding period exemption is the most practically relevant relief.

4.3 Having the Notary Apply Capital Gains Tax at Rogito

Electing to have the notary apply the 26% imposta sostitutiva at the rogito is the most direct approach for non-residents. It:

Removes the obligation to file an Italian return solely for the capital gain
Settles the tax liability definitively at the moment of transfer
Ensures the notary collects and remits the tax directly to the Italian tax authorities

This election must be made explicitly at the time of signing the deed and cannot be made retroactively.

5. Clearing Up the IVIE Confusion: Wealth Tax, Who It Really Applies To

5.1 What Is IVIE (Imposta sul Valore degli Immobili all'Estero)?

In Italy, IVIE (Imposta sul Valore degli Immobili situati all'Estero) is an annual wealth-type tax of 0.76% on the value of real property held outside Italy by individuals who are fiscally resident in Italy. It is governed by D.L. 6 dicembre 2011, n. 201, art. 19, commi 13-17 (the Decreto Salva Italia).

5.2 Why IVIE Does NOT Apply to Foreigners Owning Property in Italy

IVIE is one of the most persistently misunderstood taxes in the context of foreign property ownership in Italy. The correct legal position is straightforward: IVIE applies exclusively to individuals who are fiscally resident in Italy and who own real property located abroad.

A German citizen residing in Munich who owns an apartment in Florence owes no IVIE, because:

The property is located in Italy, not abroad, and
The owner is not fiscally resident in Italy

IVIE would become relevant only if that same person relocated to Italy, acquired Italian fiscal residency, and then owned property in Germany or elsewhere abroad. Foreign owners of Italian property should exclude IVIE from their analysis entirely. The tax that applies to them annually on their Italian property is IMU — not IVIE.

6. Practical Steps: Codice Fiscale, Fiscal Representative, and Your Annual Tax Obligations

6.1 Getting Your Codice Fiscale Before and After Purchase

In Italy, the codice fiscale is the individual tax identification number assigned to every person who interacts with the Italian tax system, whether resident or non-resident. It is an absolute prerequisite for any property transaction: without it, the notary cannot execute the deed. It is governed by D.P.R. 29 settembre 1973, n. 605.

Foreign buyers can obtain the codice fiscale:

From any Italian consulate or embassy in their country of residence, or
Directly from the Agenzia delle Entrate in Italy

The service is provided free of charge in both cases.

6.2 Hiring a Commercialista: What to Look For

In Italy, a commercialista is a chartered accountant and tax advisor registered with the Ordine dei Dottori Commercialisti e degli Esperti Contabili, the professional body established by D.Lgs. 28 giugno 2005, n. 139. They are the primary professional reference for ongoing tax compliance for foreign property owners.

When selecting a commercialista as a foreign owner, prioritise:

Demonstrable experience in cross-border taxation and international clients
Familiarity with the double taxation treaty applicable to your country of residence
Ability to communicate in your language or in English

The most effective compliance model for foreign owners is a coordinated working relationship between the Italian legal and tax team and the client's home-country advisor — particularly where treaty credit positions need to be reconciled across two jurisdictions.

6.3 Appointing a Rappresentante Fiscale (Fiscal Representative) as a Non-Resident

In Italy, a rappresentante fiscale is a person or entity domiciled in Italy appointed by a non-resident to receive official correspondence from the Agenzia delle Entrate and to fulfil tax compliance obligations on their behalf. The appointment mechanism is provided under D.P.R. 29 settembre 1973, n. 600, art. 1.

While appointment is not always legally mandatory for property owners who file independently, it is strongly advisable for those who:

Are not fluent in Italian
Do not have a commercialista already managing their Italian affairs
Risk missing official communications from the tax authority

6.4 The Flat Tax Regime (Art. 24-bis TUIR) for Those Relocating to Italy

In Italy, the regime dei neo-residenti is an optional flat-tax regime available to individuals who transfer their fiscal residence to Italy and have not been resident there for at least 9 of the 10 preceding fiscal years. It is governed by TUIR, art. 24-bis, introduced by L. 11 dicembre 2016, n. 232.

Key features:

A €100,000 annual substitute tax covering all foreign-source income, regardless of its amount or type
Available for up to 15 years
Italian-source income (including rental income from Italian property and Italian employment income) remains subject to ordinary Italian taxation
Must be elected in the tax return for the first year of Italian residency

This regime is particularly relevant to high-net-worth individuals and retirees considering relocation to Italy who have substantial investment or pension income from abroad.

Domande Frequenti / Frequently Asked Questions

Q1: What taxes does a foreigner pay when buying property in Italy?

A foreign buyer purchasing Italian property pays the imposta di registro (registration tax) at either 2% (prima casa) or 9% (second home) of the cadastral value, plus fixed-amount imposta ipotecaria and imposta catastale (€50 each in most cases). When purchasing from a developer, VAT (IVA) at 4%, 10%, or 22% replaces the proportional registration tax. These rates are established by D.P.R. 131/1986 and D.P.R. 633/1972. There is no general nationality restriction on foreign buyers accessing Italian property tax benefits, provided the statutory conditions are met.

Q2: Can a non-resident foreigner obtain the prima casa (first-home) 2% tax rate in Italy?

Yes. A non-resident foreign buyer can access the prima casa 2% registration tax rate under Nota II-bis all'art. 1 della Tariffa, D.P.R. 131/1986, provided they declare in the notarial deed a binding commitment to establish residence in the relevant municipality within 18 months of purchase. The buyer must also not own another prima casa-qualifying property in Italy, and the property must not be classified as a luxury dwelling (categories A/1, A/8, A/9). Failure to meet the 18-month deadline results in forfeiture of the benefit, recovery of the tax difference, and a 30% penalty surcharge.

Q3: How much is IMU tax for non-residents who own property in Italy?

Non-resident owners pay IMU (Imposta Municipale Propria) annually on Italian property not used as a primary residence, as established by L. 160/2019, art. 1, commi 738-783. The tax is calculated on the rendita catastale multiplied by 1.05 and then by the cadastral coefficient (160 for standard residential property), with the resulting figure multiplied by the municipal rate (typically 0.76%–1.06% for second homes). As an example, a property with a rendita catastale of €1,200 in Rome would produce an annual IMU bill of approximately €2,137. Non-resident owners do not qualify for the abitazione principale IMU exemption.

Q4: Do non-residents pay capital gains tax when selling Italian property within 5 years?

Yes. Under TUIR, art. 67, comma 1, lett. b), selling Italian residential property within five years of purchase generates a taxable capital gain (plusvalenza) equal to the sale price minus the acquisition cost and documented additional costs (renovations, notary fees, commissions). Non-resident sellers may elect to have the notary apply a 26% substitute tax (imposta sostitutiva) directly at the deed of sale, settling the liability at closing. No capital gains tax applies if the property was the seller's primary residence for the majority of the holding period, or if the property has been held for more than five years.

Q5: What is cedolare secca and can non-resident landlords in Italy use it?

In Italy, cedolare secca is a flat-rate substitute tax of 21% (or 10% for agreed-rent contracts in designated municipalities) that replaces IRPEF, regional/municipal surtaxes, and the imposta di registro on the lease. It is governed by D.Lgs. 23/2011, artt. 1-4. According to Agenzia delle Entrate guidance, non-resident foreign individuals who are natural persons and who rent residential property for residential purposes may elect the cedolare secca. In practice, the 21% flat rate is more advantageous than the ordinary IRPEF regime for most non-resident landlords, particularly once rental income exceeds the first IRPEF bracket threshold.

Q6: How do double taxation treaties protect non-resident property owners who earn rental income in Italy?

Under the bilateral double taxation conventions Italy has concluded with countries including the United States, United Kingdom, Germany, France, and China — all modelled on the OECD Model Tax Convention — Article 6 provides that rental income from Italian property may be taxed in Italy. The owner's country of residence must then either exempt that income from domestic tax or grant a tax credit for Italian taxes paid. This prevents the same rental income from being taxed in full in both countries simultaneously. Owners should retain proof of all Italian taxes paid and file appropriate disclosures in their home-country tax return to claim the relief.

Q7: Does IVIE (Italian wealth tax) apply to foreigners who own property in Italy?

No. IVIE (Imposta sul Valore degli Immobili situati all'Estero), governed by D.L. 201/2011, art. 19, is an annual 0.76% wealth tax on real property held outside Italy by individuals who are fiscally resident in Italy. It does not apply to foreign nationals residing abroad who own property in Italy. A German resident owning a Florence apartment, for example, owes no IVIE on that property. IVIE only becomes relevant if a foreign national relocates to Italy, acquires Italian fiscal residency, and then owns property abroad. Non-resident foreign owners of Italian property are subject to IMU — not IVIE.

Q8: Do I need to appoint a fiscal representative in Italy if I live abroad and own property?

Non-residents who earn rental income in Italy or who have other Italian-source income obligations are not always legally required to appoint a rappresentante fiscale (fiscal representative), but it is strongly advisable in practice. The rappresentante fiscale — provided under D.P.R. 600/1973, art. 1 — receives official correspondence from the Agenzia delle Entrate and can manage tax compliance on the owner's behalf. For non-Italian speakers or owners without an existing commercialista managing their Italian affairs, failing to appoint a fiscal representative creates a significant risk of missing tax authority communications, with consequent penalties under D.Lgs. 472/1997.

In Sintesi / Summary

At purchase: Foreign buyers pay imposta di registro at 9% (second home) or 2% (prima casa) of the cadastral value, governed by D.P.R. 131/1986. When buying from a developer, VAT applies at 4%, 10%, or 22% depending on property type and buyer status. Both regimes include fixed imposta ipotecaria and imposta catastale.
Prima casa eligibility: Non-resident foreigners can access the 2% rate by committing in the notarial deed to establish Italian residence within 18 months. Failure to do so triggers forfeiture, tax recovery, and a 30% penalty surcharge.
Annual IMU: Non-resident owners pay IMU annually at a municipal rate typically between 0.76% and 1.06% on the cadastral value. The abitazione principale IMU exemption requires genuine habitual residency and civil registry registration at the property address — not merely prima casa purchase status.
Rental income: Non-resident landlords may choose between ordinary progressive IRPEF (23%–43%) and the flat cedolare secca (21% or 10%). The cedolare secca is available to non-resident individuals and is generally more advantageous. Italy's double taxation treaties with the US, UK, Germany, France, and China provide mechanisms to avoid double taxation on rental income.
Capital gains on resale within 5 years: A 26% substitute tax (imposta sostitutiva) applies to gains on property sold within five years of purchase, under TUIR art. 67. Documented improvement costs reduce the taxable gain. No tax applies if the property was used as a primary residence for most of the holding period, or if held for more than five years.
IVIE does not apply to non-residents owning Italian property: IVIE is a tax on property held abroad by Italian fiscal residents. Foreign nationals living outside Italy who own property in Italy are subject to IMU — not IVIE. The codice fiscale and, where appropriate, a commercialista or rappresentante fiscale are essential practical prerequisites for compliant ownership.

The information in this article is for general informational purposes only and does not constitute personalised legal or tax advice. CDC Law assists foreign buyers and non-resident owners across all stages of Italian property transactions. Individual circumstances vary and professional advice should always be sought before making decisions.

Do you own or are you considering purchasing a property in Italy as a foreign or non-resident buyer? Avoid tax mistakes that can result in penalties and back payments: contact our lawyers specialised in Italian real estate law and international taxation. Write to info@cdclaw.org or call +39 06 36306020 to receive an initial assessment of your Italian tax position.