Every Tax & Fee When Buying a €1 House in Italy
Imposta di Registro, IMU, cadastral taxes, notary fees, and how to reclaim 50% of renovation costs via Bonus Casa — all explained in plain English.
Total Purchase Tax & Fee Estimate
For a typical €1 house purchase, expect to pay €3,500–€6,000 in total taxes and fees at the point of purchase, regardless of the property's size or condition. This consists of transfer taxes (€1,200–€2,500), notary fee (€1,800–€2,500), and administrative costs. Non-EU buyers add an additional €300–€600 for certified translations.
Complete Tax & Fee Breakdown
Imposta di Registro
Property Transfer Tax
Calculated on: Calculated on the cadastral value (not the €1 price). Typically €1,200–€2,500.
The 2% prima casa rate requires you to establish Italian legal residence. Non-EU buyers who cannot establish residency pay the 9% rate.
Imposta Catastale
Cadastral Tax
Calculated on: Fixed amounts. Not calculated on value.
A flat administrative fee for updating the cadastral register (Catasto) with the new ownership.
Imposta Ipotecaria
Mortgage Registry Tax
Calculated on: Fixed amounts regardless of property value.
Covers registration of any charges or encumbrances on the property title. Same rate structure as Imposta Catastale.
Onorario Notarile
Notary Fee
Calculated on: Professional tariff — minimum ~€1,800 for a simple rural property transaction.
The notary is mandatory for all Italian property transactions. The buyer chooses and pays the notary. Fees are regulated but negotiable above the minimum tariff.
Traduzione Giurata
Certified Document Translation
Calculated on: Per document or per set. Required for non-Italian documents.
Non-EU and UK buyers must have foreign documents officially translated and certified by a sworn translator (traduttore giurato). Typically applies to passport, birth certificate, and any financial documents.
Permesso di Costruzione / CILA / SCIA
Building Permit
Calculated on: Municipal fees for permit applications. Varies by work type and municipality.
CILA is for minor works. SCIA for more substantial changes. Full Permesso di Costruzione for major structural or volume changes. Your geometra will determine which applies.
IMU (Imposta Municipale Unica)
Municipal Property Tax (Annual)
Calculated on: Rendita catastale × 160 × municipal rate. For a typical €1 house: ~€300–€600/year.
Payable annually. Primary residences (prima casa) are EXEMPT from IMU. All other properties (second homes, non-residents) pay IMU every year from the date of purchase — even during renovation.
Bonus Casa — Reclaim 50% of Renovation Costs
Italian law allows qualifying buyers to deduct 50% of renovation costs from their Italian income tax (IRPEF), spread over 10 years. For EU resident buyers with Italian tax liability, this is a significant financial advantage that can offset tens of thousands of euros.
Bonus Casa rules are subject to annual review by the Italian government. Verify current availability with a commercialista before making renovation investment decisions based on this incentive.
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Frequently Asked Questions
Do I pay Italian property taxes even during renovation?
Yes — for secondary homes. IMU is payable from the date you receive the deed, even if the property is uninhabitable during renovation. Primary residence (prima casa) owners are exempt from IMU, but this requires establishing legal Italian residency.
Can US and UK buyers access the 2% prima casa transfer tax rate?
Generally no. The prima casa rate requires establishing legal Italian residency. Non-EU buyers on Schengen short-stay visas are not eligible. If you obtain an Elective Residency Visa and register with the comune, you may qualify — consult an Italian tax advisor for your specific situation.
Is the Bonus Casa renovation deduction still available in 2025?
Yes. The standard Bonus Casa (50% deduction on up to €96,000 of renovation costs) remains available for qualified renovation works. The 110% Superbonus has ended. Tax rules change annually — always verify with a commercialista before planning your tax strategy.
What is the Codice Fiscale and how much does it cost?
The Codice Fiscale is Italy's tax identification number — equivalent to a US Social Security Number or UK National Insurance number. It is free if obtained at an Italian Consulate abroad, or around €20 at an Agenzia delle Entrate office in Italy. Every buyer needs one before completing any property transaction.