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Most home sales in Italy are free of capital gains tax, but in some cases a tax bill does apply. Here’s a breakdown to help you understand when and how taxes affect property sales.
When Are Taxes Due?
Capital gains tax on property sales in Italy applies only if:
- The property is sold within five years of purchase.
- It has not been your main home (where you or your family lived) for most of the time you owned it.
- No other exemption applies.
If you’re considering buying, check our step-by-step guide: How to Buy Property in Italy as a Foreigner. You can also browse our latest Italian properties for sale.
How Much Is Capital Gains Tax?
- The gain (sale price minus purchase price and documented improvement costs) is taxed as income at your normal Italian income tax rates.
- Instead, you can choose a flat 26% tax on the gain, paid through the notary when you sign the deed. Many sellers choose this because it is simpler and often lower.
- If you’ve owned the property for more than five years, or it has been your main residence, you are generally exempt.
- Exception: since 2024, homes that had Superbonus building works can be taxed on a sale within ten years of the works. If your property had them, ask the notary.
You can also review Giambrone Law’s guide to Italian property taxes. For practical tips, see our Italian Property Blog.
Other Property Taxes to Consider
IMU – Municipal Property Tax
IMU is the yearly municipal tax on second homes and luxury properties, worked out from the cadastral income. The standard rate is 0.86%; each comune can set it lower or higher, usually up to 1.06%. Your main home is exempt unless it is in the luxury categories A/1, A/8 or A/9.
Learn more in our guide to Italian property taxes (IMU and TARI) or explore affordable homes across Italy that may have lower tax implications.
VAT or Registration Tax
- Private seller → No VAT, but the buyer pays a registration tax of 9% (or 2% for a main home), normally on the cadastral value rather than the price, with a minimum of €1,000, plus €50 + €50 fixed taxes.
- Developer/company → VAT applies, usually 4–22%, depending on property type and whether it’s your first home.
For details, see Global Property Guide. If you’re buying for the first time, read our step-by-step buying guide.
Local Taxes
The other yearly local tax is:
- TARI (waste collection tax)
- Note: TASI, which some older guides still list, was abolished in 2020 and merged into IMU.
To learn how these apply in different regions, see our region buying guides on Discover Italy.
Quick Reference Table
| Scenario | Tax Applied | Rate/Condition |
|---|---|---|
| Sell within 5 years, not main home | Capital gains tax | Income tax rates, or 26% flat rate via the notary |
| Owned for 5+ years, or main residence | Exempt | — |
| Second home / luxury property | IMU (yearly) | Standard 0.86%, set by each comune |
| Buying from private seller | Registration tax | 9% (2% main home), usually on cadastral value |
| Buying from developer | VAT | 4%–22% |
Further Reading
- Most home sales in Italy are tax-free (The Local)
- Capital Gains Tax in Italy (Giambrone Law)
- IMU and Property Taxes in Italy (Global Property Guide)
Want more insights? Visit our Italian Property Blog for the latest updates, or browse our current property listings to find your dream home in Italy.
This is general information, not legal or tax advice. Rules change, so confirm your own situation with a notary or commercialista before you sell.
