A property purchase involves taxes as well as the price agreed by buyer and seller. The amount varies considerably with the type of property, the seller and any available relief.
For a purchase from a private individual, the main tax is registration tax under Presidential Decree 131/1986, the Consolidated Registration Tax Act. Mortgage-register and cadastral taxes also apply to recording the transfer and updating the relevant registers.
For purchases from construction companies, VAT may apply under Presidential Decree 633/1972, with the other taxes charged under the applicable rules. The regime depends on the seller’s nature and transaction details.
The property’s characteristics also affect taxation. Homes, luxury properties, business premises and land are subject to different rules. Where statutory conditions are met, buyers may qualify for relief significantly reducing the tax due.
The notary has a key tax role: as well as preparing the deed, they calculate the taxes, collect them on the Treasury’s behalf and pay them to the Revenue Agency within the statutory deadlines.
There is no single fixed tax amount for every purchase. Assess the transaction and applicable regime in advance to establish the costs accurately.