Italy property tax for foreigners: on the way in, every year, on the rent, on the way out.
// Short answer
A non-resident owner in Italy meets tax at four points. On purchase: 9% registration tax on a resale, or VAT on a new build. Every year: IMU at 0.86% base on a second home. On rent: IRPEF at 23% to 43%, or the 21% cedolare secca. On sale: tax on the gain only within 5 years of buying, with a 26% flat option.
Rules and rates as of September 2026. IMU is set by each comune and income tax articles are renumbered from 1 January 2027, so check the dated items again before you sign. Every figure links to its source.
On this page
What taxes do you pay when buying property in Italy?
From a private seller: 9% registration tax (minimum EUR 1,000), plus EUR 50 mortgage tax and EUR 50 cadastral tax. From a builder within 5 years of completion: 10% VAT (22% for luxury categories A/1, A/8, A/9), plus EUR 200 each in registration, mortgage and cadastral tax.
A private buyer of a home can ask for the 9% to be charged on the cadastral value rather than the price. The first-home rates (2%, or 4% VAT) need residence in the comune. Detail: Italy property buying costs.
What is IMU and how much is it?
IMU is the municipal property tax, due on buildings other than the owner's main residence. For second homes, rented or empty units the base rate is 0.86%; the comune may cut it to 0% or raise it to 1.06%, and up to 1.14% where the former TASI surcharge was used. It is paid on 16 June and 16 December.
The base is the rendita catastale revalued by 5% times 160 for housing, not the market price. Genova, for example, applies 1.06% as its ordinary 2025 rate. A main residence is exempt unless it is in luxury categories A/1, A/8 or A/9.
TARI, the waste tax, is also owed by whoever owns or occupies the property, at a level each comune sets.
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How is rental income taxed for a non-resident in Italy?
Rent from Italian property is taxed in Italy. Under ordinary rules it is added to IRPEF income, at 23% up to EUR 28,000, 33% to EUR 50,000 and 43% above (2026 rates), after a flat 5% reduction of the rent, plus regional and municipal surcharges. The alternative is the cedolare secca.
The 33% band was cut from 35% by the 2026 Budget Law.
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What is the cedolare secca?
A flat tax on rent that replaces IRPEF and surcharges: 21% of annual rent, or 10% on agreed-rent (canone concordato) contracts. It also removes registration and stamp tax on the lease. In exchange the landlord gives up rent increases, including indexation, for the option period.
It is available to individual owners not acting in business. Whether non-residents may opt for it is widely reported to be yes, but the tax agency's page does not state it, so confirm with an Italian tax adviser.
Short lets of up to 30 days are taxed at 26%, or 21% on one unit chosen in the return. From tax year 2026, letting more than two apartments short-term counts as a business.
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What is capital gains tax on Italian property?
A gain is taxable only if the property was bought or built no more than 5 years before the sale. Main residences for most of the holding period and inherited property are excluded. The seller can ask the notary to apply a 26% substitute tax on the gain instead of IRPEF.
For sales from 1 January 2024, a gain is also taxable if Superbonus works on the property ended within 10 years of the sale, with the same exclusions. Step by step: selling property in Italy.
Sources
Do Italian tax rules change in 2027?
The article numbers do. From 1 January 2027 a new consolidated income tax text (D.Lgs. 117/2026) replaces the old one. The rules checked for this page, including the 23/33/43% rates, the 5-year gain rule and the short-let rates, are carried over with the same substance.
If an adviser cites a TUIR article number, expect a different number from 2027 for the same rule.
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See the $499 report, page by pageFrequently Asked Questions
Do foreigners pay more property tax in Italy?
Do I pay IMU on an Italian holiday home?
What is the flat tax on rent in Italy?
Is there capital gains tax if I sell after 5 years?
What is the 26% substitute tax?
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