Imposta di Registro (Registration Tax) in Italy is a flat rate of 3.0% of the purchase price. Registration tax for property purchases from a private seller. The statutory rate is 9% but it applies to the cadastral value (typically 25-40% of market value), resulting in an effective cost of roughly 2-4% of the purchase price. The calculator applies an approximate effective rate to the purchase price. Minimum tax is EUR 1,000. Buying from a developer triggers 10% VAT on the full purchase price instead (22% for luxury categories A/1, A/8, A/9).

When purchasing property in Italy, typical closing costs include: Notary Fees (Rogito), Imposta Ipotecaria (Mortgage Tax), Imposta Catastale (Cadastral Tax), Lawyer Fees (Avvocato), Administrative & Stamp Fees, Mortgage Imposta Sostitutiva, Property Valuation (Perizia). These are paid by the buyer at or before completion, in addition to the purchase price and Imposta di Registro (Registration Tax).

Ongoing costs for property owners in Italy typically include: IMU (Municipal Property Tax), TARI (Waste Tax), Property Insurance, Maintenance & Repairs. These are annual costs that should be factored into your rental yield and cash flow calculations.

Capital Gains Tax (Plusvalenza) applies when you sell a property for more than you paid. Property sold within 5 years of purchase is subject to capital gains tax. You can choose either a flat 26% substitute tax (imposta sostitutiva) on the net gain, or include the gain in your IRPEF taxable income (progressive rates 23-43%). After 5 years of ownership, the gain is fully exempt. Primary residence is exempt regardless of holding period. Inherited property is always exempt from CGT. Your primary residence is exempt from capital gains tax.