Here is the part that surprises foreign buyers most, usually in a good way. The tax you pay to buy a home in Italy is often lower than at home, but it depends on details that are easy to get wrong. This article sets out the real numbers, with a worked example, and it is part of our complete guide to buying property in Tuscany.
The default, because most foreign buyers fall into it
Buying a home from a private seller, without first home relief, you pay registration tax at 9%, plus a fixed €50 mortgage tax and €50 cadastral tax. With first home relief the 9% becomes 2%. The proportional registration tax cannot be less than €1,000, although the amount actually paid can be lower once you deduct tax already paid on the deposit at the preliminary contract, and any first home tax credit.
The detail that saves the most money
The taxable base is not automatically the price. Under the prezzo-valore system the tax is calculated on the cadastral value, which is normally far below the market price. It is not automatic, and this is where people lose it, the buyer must expressly request it from the notary in the deed itself. It applies only to residential property and its appurtenances, only where the buyer is an individual not acting in the course of a business or profession, and only to sales that are not subject to VAT. Buy through a company and the option is not available to you.
The cadastral value is the cadastral income, the rendita catastale, uplifted by 5% and then multiplied by 110 for a first home, or by 120 in all other cases.
A worked example on a farmhouse with a rendita catastale of €1,200, assuming a private seller and the prezzo-valore option.
| First home | Holiday home | |
|---|---|---|
| Taxable value | €138,600 | €151,200 |
| Rate | 2% | 9% |
| Registration tax | €2,772 | €13,608 |
| Fixed taxes | €100 | €100 |
| Total purchase tax | €2,872 | €13,708 |
The same property might be on the market at €650,000. That is why the first document we ask a seller for is the cadastral record, and why we can give a buyer an exact tax figure before any offer is made.
Who actually qualifies for the 2% rate
Treat 9% as your working assumption and 2% as a conditional benefit, because most holiday home buyers do not qualify. First home relief requires the property to be in the municipality where you are resident, or where you undertake to move your residence within 18 months of the purchase, and that undertaking must be stated in the deed itself, otherwise the relief is lost. Residence is not the only route, the relief also applies if the property is in the municipality where you carry out an activity, including study or voluntary work, and there is a separate rule for people who moved abroad for work after at least five years of residence or activity in Italy. Missing the eighteen month deadline costs you the relief plus interest and a 30% penalty, although the undertaking can be revoked before the deadline without penalty.
Two more conditions worth knowing. If you already own another home in the same municipality bought without relief, the relief is not available at all, and the earlier home must be sold before the new purchase. If the home you already own was bought with relief, you can buy again with relief provided you sell the old one within two years, a deadline raised from one year with effect from 1 January 2025.
Luxury cadastral categories, the trap in our segment
First home relief is never available for property in cadastral categories A/1, stately homes, A/8, villas, and A/9, castles and historic palaces. A great many Tuscan villas are classified A/8. Check the cadastral category before you assume any reduced rate, it is one line in the cadastral record and it changes the arithmetic completely.
If the seller is a company
The general rule is the opposite of what most buyers expect, a sale by a company is normally exempt from VAT, so you pay registration tax at 9%, or 2% with relief, plus the €50 and €50. VAT applies only in specific cases, typically a sale by the building or renovating company within five years of completion, or later than five years if the seller opts for VAT in the deed or in the preliminary contract. Where VAT does apply it is 10%, 4% with first home relief, and 22% for the luxury categories A/1, A/8 and A/9, and registration, mortgage and cadastral taxes are €200 each. Note that with VAT the taxable base is the price, not the cadastral value, and the prezzo-valore option is not available.
Source for this section, Agenzia delle Entrate, the official guide to buying a home and the related tax reliefs, October 2025 edition. Figures are indicative and every property has its own history, so confirm your specific case with your notary.
The other costs
- Notary, a public officer, not your lawyer, chosen and paid by the buyer. The fee depends on the value and complexity of the deed and includes registration and the searches.
- Agency commission, in Italy it is customary for both buyer and seller to pay the agency, a percentage of the price plus VAT, agreed in writing before the offer.
- Technical survey, a geometra or architect who checks that what is built matches what was authorised. On an old country property this is the best money you will spend in the entire transaction.
- Translation and interpreter, where the buyer does not speak Italian.
Financing, if you need a mortgage
There is no legal bar to a non resident foreign buyer taking an Italian mortgage, but lending criteria are more conservative. Brokers and specialist lawyers typically report loan-to-value ratios for non residents in the range of 50% to 70%, so a deposit of 30% to 50%, against a general ceiling of 80% for residents, with terms of 20 to 25 years and an instalment capped at roughly 30% of income. These are market ranges, not rules, and each bank sets its own conditions.
For context, the average rate on new mortgages for house purchase in Italy was 3.48% in June 2026, source ABI, and 45.9% of homes bought by individuals in 2025 were financed with a mortgage, with an average loan of €141,400, source Agenzia delle Entrate, Real Estate Report 2026. Start the conversation with a bank or a broker before you make an offer, not after, and write the financing condition into the proposal.
Where to go next
- The purchase process, step by step
- What it costs to own a house in Tuscany, IMU and TARI
- How much property in Tuscany costs, prices by area
How we can help
We are a boutique agency based in Tuscany. Ask us for the cadastral record of any property you are considering and we will give you the tax figure before you offer. You can browse what we have for sale, use our property finding service, or book a call, in English, Italian or German.
Frequently asked questions
How much tax do I pay to buy a house in Italy?
Buying from a private seller without first home relief, you pay registration tax at 9%, plus a fixed €50 mortgage tax and €50 cadastral tax. With first home relief the 9% becomes 2%. The proportional registration tax cannot be less than €1,000.
Who qualifies for the 2% first home rate?
Buyers who are resident in the municipality, or who undertake in the deed to move their residence there within 18 months. Most holiday home buyers do not qualify, so treat 9% as your working assumption and 2% as a conditional benefit.
What is prezzo-valore and why does it matter?
Under the prezzo-valore system the purchase tax is calculated on the cadastral value, normally far below the market price, but only if the buyer expressly requests it from the notary in the deed. It is not available when you buy through a company or when VAT applies.
Do luxury villas qualify for the reduced rate?
No. First home relief is never available for cadastral categories A/1, A/8 and A/9, and many Tuscan villas are classified A/8, so check the cadastral category before you assume any reduced rate.
Can I get a mortgage in Italy as a non resident?
Yes, there is no legal bar, but lending criteria are more conservative. Brokers typically report loan-to-value ratios of 50% to 70% for non residents, so a deposit of 30% to 50%, and each bank sets its own conditions.
These figures are indicative and every property has its own history, so confirm your specific case with your notary or tax advisor. Source, Agenzia delle Entrate guide to buying a home, October 2025 edition.
