Selling property in Italy as a foreigner: the five-year line, the 26% option, the deed.
// Short answer
In Italy a gain on selling a property is taxable only if you bought it within 5 years of the sale, with exceptions such as a main residence and inherited property. The seller can ask the notary to apply a 26% substitute tax on the gain at the deed. Where Superbonus works ended within 10 years, a separate rule applies.
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
How much tax does a foreigner pay on selling Italian property?
None on the gain if the property was bought or built more than 5 years before the sale. Within 5 years, the gain is taxable: either added to IRPEF income at 23% to 43%, or taxed at a 26% substitute tax that the notary collects and pays at the deed, on the seller's request.
Excluded from the 5-year rule: property used as the main residence of the seller or family for most of the holding period, and inherited property. For a gift, the 5 years run from the donor's purchase.
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What is the Superbonus 10-year rule?
For sales from 1 January 2024, if Superbonus works on the property ended no more than 10 years before the sale, the gain is taxable even after the 5-year line. Inherited property and a main residence for most of the period are excluded. The 26% substitute tax can also be used.
Check whether any Superbonus works were carried out on the property, and when they ended.
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What do you need to sell property in Italy?
Your codice fiscale, a deed before a notary, and records that match: the deed must state the cadastral data and refer to the filed floor plans, with a declaration or technician's certificate that the property matches them. The notary checks the cadastral owners against the registers.
Fix any mismatch between the property and the cadastral plan before the deed. See the visura catastale, explained.
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Who pays the estate agent when selling in Italy?
Commission is not fixed by law. It is commonly quoted at about 3% plus 22% VAT from each side, negotiable and varying by region and price, usually due at the preliminary contract. The deed must name any agent used and the fee.
The buyer's side of the same deed: Italy property buying costs.
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Can a foreigner take the sale money out of Italy?
Yes, as reported. As an EU member Italy has no capital controls, so proceeds can be sent out without approval. Cash of EUR 10,000 or more carried across the border must be declared. The buyer pays by bank transfer or banker's cheque, as the deed records.
Detail: transferring money to Italy for a property.
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// Buying in Italy?
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See the $499 report, page by pageFrequently Asked Questions
Is there capital gains tax on Italian property after 5 years?
What is the 26% tax when selling in Italy?
Does Superbonus work change the tax on my Italian sale?
Does a gift reset the 5-year clock in Italy?
Header photo: Ray in Manila, CC BY 2.0, via Wikimedia Commons. All credits: image credits.