Stamp Duty
Stamp duty is two percent of the cadastral value of the home if you are resident in Italy full time. The cadastral value is generally an amount lower than you have paid for the house, as it’s based on a valuation of the property from several years ago.
So normally this works in the buyer’s favour. OR it’s nine percent of the cadastral value if this is your second home in Italy, or if you are non-resident.
If you are buying as a business rather than as an individual then nine percent is applied. The minimum payment for stamp duty is €1,000.
So, if your house is very low priced, and either two or nine percent of the property’s value falls below this threshold, you will be charged a flat fee of €1,000. Note: You have 18 months to become resident in Italy from the date of your house purchase.
If it is your intent to become a resident, you will only be charged two percent stamp duty at this stage. Should you not become resident within 18 months, then the government will require the outstanding seven percent.
Exceptions to stamp duty
If your home is deemed a ‘luxury property’, stamp duty is higher, up to twenty percent, with higher land registry and cadastral taxes. If it’s what’s classed as an agricultural property, stamp duty will be ten percent.
If you’re buying agricultural land, then stamp duty is fixed at ten percent. If the house is a new development and it is your first Italian home, there is no stamp duty but instead IVA will be added to the purchase price at four percent for residents, or ten percent for non-residents and second home owners. Land registry and cadastral taxes are higher also.
If you build your own home, this is subject to IVA at four percent of the value.
Land registry tax
€50 – fixed rate.
Cadastral tax
€50 – fixed rate.