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In short: To buy a home in Italy, budget around 9–15% in extra costs on top of the price. With «first home» relief from a private seller, registration tax is 2% of the cadastral value (minimum €1,000) and the mortgage and cadastral taxes are €50 each; without relief (a second home) registration tax rises to 9%. Buying from a building company means VAT at 4% (first home) or 10% (standard), plus fixed taxes. The notary costs roughly €2,000–5,000 (deed plus mortgage, VAT included). A non-luxury main home is exempt from the annual IMU property tax; a second home pays it. This is educational material, not tax, legal or financial advice — for your situation consult a notary or a qualified professional.

Property & Housing: Buying a Home in Italy

Kontoo editorial team · Updated 06/24/2026

Buying a home in Italy means more than the agreed price. Between taxes, the notary’s fee and mortgage costs, the extra charges add up significantly and should be budgeted from the start. This chapter explains the main items in plain language — registration tax or VAT, the «first home» (prima casa) relief, the notary cost and the annual IMU property tax — so you can build a realistic picture before you sign. All figures are current for 2026; because amounts and rates change, always check the numbers against official sources.

Set a realistic budget: the property price plus roughly 9–15% in extra costs (taxes, notary, possible agency fee).
Check whether you qualify for «first home» relief: a non-luxury cadastral category (A/2–A/7, A/11) and residence in the municipality or relocation within 18 months.
Compare several mortgage offers by the APR (TAEG), not just the nominal rate (TAN): the TAEG includes all accessory costs.
Get a quote from the notary and estimate the annual IMU if it is a second home (a non-luxury main home is exempt).

What matters

The cost of buying a home in Italy has several components. The first is transfer taxation. If you buy from a private seller (or a business selling VAT-exempt) you pay registration tax: with «first home» relief it is 2% of the cadastral value, with a €1,000 minimum, while the mortgage and cadastral taxes are fixed at €50 each. Without relief — typically a second home — registration tax rises to 9%. If instead you buy from a building company on a VAT-liable sale, the rate is 4% of the price for a first home and 10% for a standard home, with registration, mortgage and cadastral taxes fixed at €200 each. «First home» relief requires that the property is not a luxury one (cadastral categories A/1, A/8, A/9 excluded; A/2–A/7 and A/11 eligible) and that it is in your municipality of residence or work, or that you move your residence there within 18 months of purchase. An often-underestimated item is the notary: the fee for the purchase deed plus the mortgage deed is roughly €2,000–5,000, including 22% VAT, with large regional differences. On top of that, the mortgage carries a substitute tax of 0.25% of the financed amount for a first home (2% for a second home). Finally there is the annual IMU. A non-luxury main residence is exempt; a second home pays it, at a base rate of 0.86% that municipalities can raise up to 1.06%. As these are volatile numbers, always verify rates and amounts against official sources before deciding.

ExampleExample for a first home bought from a private seller, price €250,000, cadastral value €100,000. Registration tax 2% of €100,000 = €2,000. Mortgage and cadastral taxes: €50 + €50 = €100. Notary (deed + mortgage, VAT included): about €3,500. Mortgage substitute tax 0.25% of €200,000 financed = €500. Total extra costs ≈ €6,100, on top of the price. Rounded figures, as of 2026.

Estimate your repayment and total costs with Kontoo’s mortgage calculator and verify the official rates on the Agenzia delle Entrate (Italian Revenue Agency) website.

In depth

Cadastral value, not price

For a first home bought from a private seller, registration tax is calculated on the cadastral value (the revalued income multiplied by statutory coefficients), often lower than the market price thanks to the «price-value» mechanism. This noticeably reduces the tax due.

APR and mortgage term

For the same nominal rate, accessory costs and term change the total cost of the loan. Always compare the TAEG (APR) and simulate different terms: a lower monthly payment over more years can mean far more total interest.

Disclaimer

This chapter is for educational purposes and is not tax, legal or financial advice. Rates, amounts and requirements can change: if you are buying, consult a notary or a qualified professional and the official sources.

Checklist

I can distinguish buying from a private seller (registration tax) versus from a building company (VAT).
I know the «first home» relief requirements: non-luxury category and residence within 18 months.
I have budgeted the notary (about €2,000–5,000) and the mortgage substitute tax.
I know a non-luxury main home is exempt from IMU, but a second home is not.

Common myths

Myth: «Buying a home only costs the property price.»

Reality: False: taxes, notary and mortgage costs add roughly 9–15% of the price. Budget for them from the start.

Myth: «A first home never pays IMU.»

Reality: Only if it is the main residence and not a luxury property. Categories A/1, A/8 and A/9 (stately homes, villas, castles) pay IMU regardless.

Frequently asked questions

How much does the notary cost when buying a home?

For a first home the notary’s fee is roughly €1,500–3,000; with the mortgage deed the total often reaches €2,000–5,000, including 22% VAT. The notary also collects the taxes due to the State and forwards them to the Revenue Agency. As of 2026, amounts vary by region and property value, so always ask for a quote.

Do I pay IMU on my first home?

No — if it is your main residence (registered residence and habitual home) and is not a luxury property (categories A/1, A/8, A/9) you are exempt from IMU. Luxury homes and second homes do pay IMU: the statutory base rate is 0.86% for second homes, which municipalities can raise up to 1.06%. As of 2026, check your municipality’s rate.

What do I need to qualify for «first home» relief?

The property must not be a luxury cadastral category (eligible are A/2, A/3, A/4, A/5, A/6, A/7 and A/11) and must be in the municipality where you live or work, or you must move your residence there within 18 months of purchase. You must not already own another relieved first home. As of 2026.

What is the difference between TAN and TAEG on a mortgage?

The TAN is the «pure» interest rate on the capital; the TAEG (APR) also includes accessory costs (arrangement, valuation, collection fees) and is therefore the most complete figure for comparing offers. To judge the real cost of a mortgage, always look at the TAEG.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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