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Italy property taxes for investors: a factual guide | Onora Capital
Taxation
Italy property taxes for investors: a factual guide
Onora Capital·4 June 2026·3 min read
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Italy taxes a second home quite differently from a primary residence, and offers a flat-tax option on rental income that many investors use. General information only.
This is general information, not tax, legal or financial advice. Rates and rules are summarised as of early 2026, vary by region and property value, and change frequently. Onora does not verify figures or give advice, always confirm with a qualified local adviser before acting. See our disclaimer.
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For a second home bought resale, registration tax is 9% of the cadastral value (often well below market price), plus small fixed mortgage and land-registry taxes. From a developer, you pay 10% VAT (22% on luxury categories) instead. A primary residence is taxed far more lightly (2%), but most international buyers purchase a second home. Budget notary and agency fees on top.
During ownership
IMU is the annual municipal property tax. A primary residence is generally exempt (unless in a luxury cadastral category), but second homes pay IMU: the relevant case for most foreign buyers. Rates are set locally.
Rental income
Italy's cedolare secca is a flat-tax option of 21% on residential rental income, replacing ordinary progressive income tax and some other duties. For short-term lets, the first property can use 21%, while additional short-let units are taxed at 26%. Alternatively, ordinary IRPEF progressive rates apply.
On sale
Capital gains on property are exempt if the property is held for more than five years. If sold within five years, the gain is taxable, with an option for a 26% substitute tax in many cases.
Residency & investor visa
Italy's Investor Visa is not real-estate-based: qualifying routes include €250,000 in an innovative startup, €500,000 in an Italian company, €2,000,000 in government bonds, or €1,000,000 in philanthropy. Buying property does not by itself grant residency. (Separately, Italy has used a flat-tax regime for new high-net-worth residents, verify current terms.)
In short
Second homes: 9% registration tax (cadastral) on resale, or 10% VAT from a developer; plus IMU annually.
Cedolare secca offers a 21% flat tax on residential rent (26% on extra short-let units).
Gains are exempt after 5 years; the investor visa is not property-based.
This is general information, not tax, legal or financial advice. Rates and rules are summarised as of early 2026, vary by region and property value, and change frequently. Onora does not verify figures or give advice, always confirm with a qualified local adviser before acting. See our disclaimer.
