Foreign Buyers Italy Property Taxes: 2026 Hub Guide
Italian property tax reaches a foreign buyer at 3 separate moments, and each is governed by its own rule. Purchase is taxed on cadastral value rather than price, ownership carries an annual IMU charge set by the comune, and letting income is taxed under whichever rental regime the lease elects.
Quick answer: Foreign buyers face the same Italian tax code as Italian nationals on the property itself, but most international owners land on the second-home track: 9% registration tax on resale (or 10% VAT on new builds), full annual IMU, 21% cedolare secca on typical rental income, and 26% capital gains if you sell within five years without an exemption. Home-country layers (UK SA105, US Schedule E, IVIE for Italian tax residents with foreign portfolios) stack on top; the Italian side of that is in IVIE and IVAFE for foreign property owners, and the cadastral base every Italian figure rests on in cadastral value against market price. Use this hub to map every levy, then open the deep guides before you sign compromesso.
For the full purchase cost stack start with cost of buying property in Italy. For passport-specific overlays see UK tax on Italy holiday home and US tax on Italy rental property.
Italian tax modeling on a €450,000 Puglia villa resale in Q2 2026 shows 9 percent registration tax on €165,000 cadastral value equals €14,850 at rogito, while annual IMU near €2,100 and TARI near €480 recur every June and December via F24. Non-resident landlords electing cedolare secca at 21 percent on €28,000 gross STR income pay €5,880 Italian rent tax before UK SA105 or US Schedule E overlay. A second tourist unit at €18,000 gross triggers 26 percent cedolare at €4,680. Plusvalenza at 26 percent on gains within five years can erase flip profits if acquisition cost documentation is thin. Model purchase, annual, and exit tax in one spreadsheet before compromesso, not after rogito on foreign-owned stock in 2026.
Foreign second-home buyers should budget 10 to 12 percent all-in closing on typical resales: 9 percent registration tax on cadastral base, notary fees near 1.5 percent of price, and agency commission at 3 percent plus 22 percent VAT on the buyer side in Milan or Rome. Clients who establish prima casa within 18 months cut registration tax to 2 percent and drop IMU on standard residential stock, saving roughly €31,500 entry tax on a €450,000 ticket when cadastral value is €165,000. Missing the residency deadline triggers retroactive 7 point registration gap plus penalties near 30 percent under Agenzia delle Entrate audits. Confirm anagrafe timing with commercialista before electing benefits in the deed for 2026 purchases above €350,000.
| Stage | What applies |
|---|---|
| Purchase from a private seller | 9% registration on cadastral value, plus €50 ipotecaria and €50 catastale |
| Annual ownership | an IMU charge between 0.86% and 1.06% of cadastral value, set by the comune |
| Letting income | 21% under cedolare secca on a long lease, no deductions |
| Sale | Capital gains taxable within 5 years of purchase |
- Purchase tax is charged on cadastral value under prezzo-valore, not on the agreed price.
- IMU is annual and set by the comune between 0.86% and 1.06% for a second home.
- Letting and sale each carry their own regime, covered in the sections below.
| Moment | Charge |
|---|---|
| Purchase from a private seller | 9% registration on cadastral value |
| Annual ownership | IMU at 0.86%-1.06%, set by the comune |
| Letting | 21% cedolare secca on a long lease |
What property taxes do foreign buyers pay when buying in Italy?
Three at purchase and three every year afterwards, and the split matters more than the total. At the deed you pay registration tax, mortgage tax and cadastral tax, calculated on the cadastral value rather than the price when the prezzo-valore mechanism applies. Every year after that you pay IMU if it is not your primary residence, TARI for waste, and tax on any rent you collect.
| Item | Typical 2026 range | Notes |
|---|---|---|
| What property taxes do foreign buyers pa | €400,000 ticket | Model before offer |
| Professional review | €1,200 to €3,500 | Avvocato + geometra |
| Timeline | 60 to 120 days | Offer to rogito |
Most international enquiries in 2026 follow the second-home path because the owner remains tax-resident in London, New York, Dubai, or Sydney while using the Italian asset for holidays and part-year letting. That path triggers 9% registration tax on private resale purchases, full IMU every June and December, and cedolare secca at 21% on the first rental unit. Buyers who relocate and register Italian residency within 18 months can access prima casa purchase rates and IMU exemption on standard residential stock.
Italian Estate models tax before yield because a gross 6% STR return in Puglia can fall to 3% net once IMU, cedolare secca, management, and UK or US home-country tax are applied. Treat this page as the map. Each tax layer has a dedicated guide linked below with calculation examples, F24 deadlines, and notary withholding mechanics.
- Get the visura catastale and conformità edilizia before money moves.
- Hold F24 receipts and assembly minutes in one place for the eventual sale.
How does registration tax differ from VAT on Italian property?
Which tax applies depends on who is selling. Buy from a private seller and you pay registration tax (9% on a second home, 2% with prima casa relief) calculated on the cadastral value under the prezzo-valore rules, which is usually well below the price paid. Buy from a VAT-registered developer and you pay IVA at 10% (22% on luxury categories) on the full price, plus fixed registration, cadastral and mortgage duties. The difference on the same headline price can run to tens of thousands of euros.
The prezzo-valore system lets the notary calculate registration tax on cadastral value rather than market price when buying from a private individual. Cadastral value equals rendita catastale times 1.05 times 120 for second homes (110 for prima casa). On a Florence apartment with cadastral rent of 1,500 euros, the taxable base is 189,000 euros and 9% registration tax equals 17,010 euros even if the market price is 900,000 euros.
Developer sales skip percentage registration tax. The buyer pays VAT on the full price: 4% prima casa, 10% second home, 22% on luxury cadastral classes from a VAT-registered seller. Fixed imposta di registro, ipotecaria, and catastale fees of 200 euros each apply instead of percentage mortgage and land registry taxes.
| Transaction type | Seller | Second-home rate | Tax base | Fixed fees |
|---|---|---|---|---|
| Resale apartment or villa | Private individual | 9% registration tax | Cadastral value (rendita x 1.05 x 120) | 50 euros mortgage + 50 euros cadastral |
| Resale (prima casa eligible) | Private individual | 2% registration tax | Cadastral value (rendita x 1.05 x 110) | 50 euros + 50 euros |
| New build under 5 years | Developer (VAT registered) | 10% VAT | Agreed purchase price | 200 euros + 200 euros + 200 euros |
| New build prima casa | Developer | 4% VAT | Agreed purchase price | 600 euros fixed total |
| Luxury new build (A/1, A/8, A/9) | Developer | 22% VAT | Agreed purchase price | 600 euros fixed total |
Full calculation walkthroughs, minimum tax floors, and notary collection timing sit in the dedicated Italy registration tax on property guide. Pair that with the complete cost of buying property in Italy breakdown for notary and agency lines.
- Hold F24 IMU receipts and assembly minutes filed together from day one.
What is IMU and when do non-resident owners pay it?
The municipal property tax, and as a non-resident you almost always pay it. It falls due on anything that is not your registered primary residence, which for a foreign owner means the holiday home is always in scope. It is calculated on the cadastral value, not the purchase price, which is why the headline percentage overstates the bill.
| Item | Typical 2026 range | Notes |
|---|---|---|
| What is IMU and when do non-resident own | €400,000 ticket | Model before offer |
| Professional review | €1,200 to €3,500 | Avvocato + geometra |
| Timeline | 60 to 120 days | Offer to rogito |
Standard primary residences are IMU-exempt, but foreign holiday-home buyers rarely qualify because exemption requires registered residenza anagrafica and habitual use as main abode. Luxury primary homes in cadastral classes A/1, A/8, and A/9 pay IMU even when used as prima casa, at a reduced municipal rate plus a 200 euro national deduction.
The IMU base uses cadastral rent revalued by 5%, multiplied by coefficient 160 for residential category A, then multiplied by the municipal aliquota. Example: cadastral rent 1,000 euros, comune rate 1.06%. Base = 1,000 x 1.05 x 160 = 168,000 euros. IMU = 168,000 x 0.0106 = 1,780.80 euros per year.
Non-resident owners typically appoint an Italian commercialista or property manager to file F24 because payment requires Italian tax credentials. IMU is not deductible against Italian cedolare secca rent but may reduce UK rental profit or US Schedule E income depending on home-country rules.
For formula detail, luxury class exceptions, and pro-rata rules when you buy mid-year, read IMU property tax in Italy.
- Keep F24 IMU receipts and assembly minutes filed together from day one.
IMU is the municipal property tax and, for a non-resident owner, it is the entire annual tax on the asset itself. It is calculated from the cadastral rendita rather than from the price paid: take the rendita, add the statutory 5% revaluation, multiply by the category coefficient: 160 for ordinary homes, and apply the comune’s rate, commonly 0.86-1.06% on a second home. Payment falls in two instalments, 50% by 16 June and the balance by 16 December, and no bill is issued: the calculation and the deadlines are the owner’s responsibility. A property that is the owner’s registered primary residence is generally exempt unless it falls in a luxury cadastral category. On a €400,000 apartment the annual figure typically lands between €1,400 and €3,500.
Can foreigners qualify for Prima Casa tax benefits in Italy?
Yes, and nationality is not the test: residency is. The buyer must transfer residence to the comune where the property sits within 18 months of the rogito, must not own another home in that comune, and must not hold another property bought with prima casa relief anywhere in Italy. The reward is registration tax at 2% instead of 9%, plus reduced IMU. Italian citizens registered as resident abroad through AIRE have their own route to the relief without moving.
| Item | Typical 2026 range | Notes |
|---|---|---|
| Can foreigners qualify for Prima Casa ta | €400,000 ticket | Model before offer |
| Professional review | €1,200 to €3,500 | Avvocato + geometra |
| Timeline | 60 to 120 days | Offer to rogito |
Prima casa is not a self-declaration on the purchase deed. Agenzia delle Entrate cross-checks anagrafe records. Missing the 18-month residency deadline triggers retroactive collection of the 7 percentage-point registration tax gap, a 30% penalty, and interest. Selling within five years after claiming prima casa can claw back benefits unless you buy another primary home within one year in specific replacement scenarios.
Luxury cadastral classes A/1 (stately apartments), A/8 (villas), and A/9 (castles and historic palaces) are excluded from prima casa purchase reductions and IMU exemption even when you live there full time. Many foreign buyers targeting Tuscan farmhouses or Puglia trulli fall outside luxury classes, but Milan penthouse stock often does not.
Elective residence visa holders and flat-tax new residents frequently pursue prima casa when relocation is genuine. Remote workers who keep tax residency in another country should assume second-home treatment. Side-by-side rate tables and compliance timelines are in Italy prima casa vs second home tax.
How does cedolare secca work for rental income from Italian property?
It replaces the progressive income tax on rent with a single flat rate, and for most non-resident landlords it is the cheaper option. You elect it in the lease registration, it takes the place of IRPEF, regional and municipal surcharges on that income, and it removes the annual rent indexation in exchange.
| Item | Typical 2026 range | Notes |
|---|---|---|
| How does cedolare secca work for rental | €400,000 ticket | Model before offer |
| Professional review | €1,200 to €3,500 | Avvocato + geometra |
| Timeline | 60 to 120 days | Offer to rogito |
The election is made when registering the lease or STR compliance file with Agenzia delle Entrate. Cedolare secca replaces Italian income tax on that rent stream. You cannot deduct IMU, maintenance, or management fees against cedolare secca, which is why high-expense properties sometimes perform better under ordinary IRPEF if your Italian marginal rate stays low. Most foreign landlords still elect cedolare secca for predictability.
Example: gross STR revenue 28,000 euros on a single Puglia trullo after platform fees are excluded from the cedolare base calculation on registered gross rent. At 21%, Italian tax is 5,880 euros. IMU of 2,000 euros and 4,000 euros management sit outside cedolare and reduce net cash either way. A second STR unit at 18,000 euros gross pays 26%, or 4,680 euros.
Concordato subsidized leases can qualify for 10% cedolare secca but require rent caps and tenant eligibility that rarely match international STR strategies. CIN registration, SCIA or SUAR municipal paths, Alloggiati Web guest reporting, and local tourist tax collection remain mandatory regardless of tax election.
Deep rate tables, IRPEF comparison math, and F24 filing steps are in cedolare secca Italy rental property (published in this tax cluster). Cross-border reporting for landlords remains in UK tax on Italy holiday home and US tax on Italy rental property.
When does Italy 26% capital gains tax apply on property sales?
Only if you sell within five years of buying, and only on the gain. Hold beyond five years and the sale of a residential property by a private individual is generally outside the charge entirely, which is the single most consequential rule in Italian property tax for a foreign owner planning an exit.
Taxable gain equals sale price minus documented acquisition cost (purchase price in the deed plus eligible notary and agency fees, not the lower cadastral figure used for registration tax). Inherited property is exempt regardless of holding period. Primary residence used as abitazione principale for most of the holding period is exempt even within five years if residency can be documented.
Buildable land (terreni edificabili) follows different rules and remains taxable at IRPEF rates without the 26% substitute option. Foreign sellers face the same plusvalenza rules as Italian residents. The notary acts as withholding agent when substitute tax is elected in the deed.
| Scenario | CGT status | Typical Italian rate |
|---|---|---|
| Second home sold after 4 years | Taxable | 26% substitute on gain |
| Second home sold after 6 years | Exempt (individual) | 0% |
| Primary residence, documented use | Exempt | 0% |
| Inherited villa sold after 2 years | Exempt | 0% |
| Buildable land any holding period | Taxable | IRPEF progressive |
UK and US sellers may owe home-country capital gains tax on the same disposal even when Italy exempts the gain after five years. Treaty foreign tax credit rules apply where both countries tax the same element. Full exemption tests and notary withholding mechanics are in Italy capital gains tax on property.
What inheritance and succession taxes apply to foreign owners?
Italian succession tax is charged on Italian-situs property regardless of where the owner lived, and the rates are low by European standards: 4% for a spouse or child above a €1,000,000 allowance each, 6% for siblings above €100,000, 6% for other relatives with no allowance, and 8% for unrelated beneficiaries. What complicates a foreign estate is not the rate but forced heirship: Italian law reserves shares for a spouse and children unless the EU Succession Regulation is used to elect the law of your nationality.
| Item | Typical 2026 range | Notes |
|---|---|---|
| What inheritance and succession taxes ap | €400,000 ticket | Model before offer |
| Professional review | €1,200 to €3,500 | Avvocato + geometra |
| Timeline | 60 to 120 days | Offer to rogito |
Succession tax rates in 2026 run from 4% for spouses and direct-line heirs (with a 1,000,000 euro exemption per beneficiary) to 6% for siblings (100,000 euro exemption) to 8% for unrelated beneficiaries (1,500,000 euro exemption). Tax is calculated on the declared value at transfer, which may differ from market price.
Legittima reserves fixed shares for spouse, children, and certain ascendants. A UK or US will that leaves an Italian villa entirely to one child may be partially void if other protected heirs exist. Lifetime gifts count toward legittima calculations and can trigger reduction actions after death.
Usufruct and nuda proprietà structures split use rights from bare ownership and can reduce succession tax exposure when planned before purchase with an Italian avvocato. Probate typically completes in 6 to 12 months for cooperative estates and can extend beyond 18 months when cross-border documentation is incomplete.
Forced heirship tables, EU law election forms, and filing deadlines are in Italy inheritance law for property foreigners.
What are IVIE and IVAFE for non-residents with Italian property?
They are the mirror image of what you are asking about, and they do not apply to you. IVIE and IVAFE are the taxes an Italian tax resident pays on property and financial assets held abroad. A non-resident with Italian property faces neither; the confusion arises because the acronyms surface in every expat forum thread about Italian tax.
| Item | Typical 2026 range | Notes |
|---|---|---|
| What are IVIE and IVAFE for non-resident | €400,000 ticket | Model before offer |
| Professional review | €1,200 to €3,500 | Avvocato + geometra |
| Timeline | 60 to 120 days | Offer to rogito |
The distinction matters when buyers relocate under elective residence, investor visa, or the Article 24-bis flat-tax regime. Becoming Italian tax resident triggers worldwide reporting. IVIE applies to your UK or US home if you keep it while living in Italy. IVAFE applies to foreign brokerage and bank accounts above de minimis thresholds.
Italian property held while you are non-resident in Italy is subject to IMU and Italian source rent tax, not IVIE. Once you move tax residency to Italy, IMU rules on your Italian second home may change if you reclassify use, and IVIE may apply to property you still own abroad.
Minimum tax floors, RW quadro reporting, and F24 payment dates for IVIE and IVAFE are covered in Italy IVIE and IVAFE for foreign property owners (published in this tax cluster). Pair with Italy flat tax regime for new residents if you evaluate relocation.
What total annual tax burden should foreign owners budget?
For a non-resident with one Italian second home, the annual stack has three lines and no fourth: IMU at 0.86-1.06% of revalued cadastral value, TARI waste tax set by the comune, and cedolare secca at 21% or 26% on any rent. There is no wealth tax on Italian real estate. On a €400,000 apartment that typically lands between €1,400 and €3,500 a year before any rental tax, which is the figure to carry into a yield model.
Purchase phase adds 10% to 12% all-in on typical resale second homes before renovation. Annual carrying tax without rental income is often 2,000 to 5,000 euros on 400,000 to 700,000 euro coastal stock once IMU, TARI, and condominium spese are combined. STR operators add cedolare, management at 15% to 25% of gross, and compliance costs for CIN and municipal licensing.
| Owner profile | Purchase tax stack | Annual Italian taxes (no rent) | Annual with STR gross 30k |
|---|---|---|---|
| Non-resident second home (resale) | 9% registro + 3% notary/agency | IMU 2k + TARI 400 | + cedolare 6.3k at 21% |
| Non-resident new build | 10% VAT + fees | IMU 2.5k + TARI 500 | + cedolare 6.3k |
| Italian resident prima casa (resale) | 2% registro | IMU 0 + TARI 350 | + cedolare if let |
| Flat-tax resident, global portfolio | 9% if second home | IMU + IVIE/IVAFE abroad | Model with commercialista |
Insider tip: buyers who underwrite only IMU and ignore TARI plus condominium straordinarie spikes often miss 800 to 1,500 euros annual cash drag in historic centro buildings. Request three-year condominium minutes before compromesso, not just last year’s ordinary budget.
How do UK and US tax rules overlay Italian property taxes?
They sit on top rather than instead. The United States taxes its citizens on worldwide income wherever they live, and the United Kingdom taxes its residents on foreign property income and gains. In both cases the double taxation treaty and the foreign tax credit prevent the same income being taxed twice, but they do not remove the filing obligation, and the credit rarely lines up perfectly with what Italy charged.
US citizens and green card holders report worldwide rental income on Schedule E and claim foreign tax credit on Form 1116 for Italian tax paid. Cedolare secca qualifies as creditable foreign tax in most cases. IMU is generally deductible on US Schedule E even though Italy disallows IMU against cedolare.
FBAR (FinCEN 114) is required when aggregate foreign accounts exceed $10,000 at any time. FATCA Form 8938 applies at higher asset thresholds.
Neither country exempts you from Italian IMU or purchase taxes at source. The overlay is parallel filing plus treaty credit, not pick-one jurisdiction. Post-April 2025 UK reforms ended new remittance basis claims for non-domiciled residents, increasing worldwide reporting for many British buyers.
| Tax layer | Italy (non-resident) | UK overlay | US overlay |
|---|---|---|---|
| Purchase | 9% registro or 10% VAT | No direct UK purchase tax | No direct US purchase tax |
| Annual ownership | IMU + TARI | Not creditable; affects UK net rent if let | IMU deductible on Schedule E if let |
| Rental income | Cedolare 21% or 26% | SA105 + FTC | Schedule E + Form 1116 |
| Sale within 5 years | 26% plusvalenza if taxable | UK CGT + FTC | US CGT + FTC |
| Sale after 5 years | Generally exempt | UK CGT on gain | US CGT on gain |
| Death / gift | Succession tax IT | UK IHT worldwide | US estate tax rules |
Full SA105 walkthroughs sit in UK tax on Italy holiday home. FBAR, FATCA, and cedolare interaction for Americans are in US tax on Italy rental property.
How should foreign buyers sequence tax planning before rogito?
Before the offer, not before the deed, because two of the decisions cannot be reversed afterwards. Whether you buy as an individual or through a company, and whether you will claim prima casa, both change the tax due at the deed and both have to be settled in the compromesso. Everything else can be arranged later.
| Item | Typical 2026 range | Notes |
|---|---|---|
| How should foreign buyers sequence tax p | €400,000 ticket | Model before offer |
| Professional review | €1,200 to €3,500 | Avvocato + geometra |
| Timeline | 60 to 120 days | Offer to rogito |
Phase one at offer stage: decide whether relocation within 18 months is realistic. If not, underwrite 9% registration tax and full IMU. Phase two at compromesso: verify rendita catastale, luxury class, and whether seller is private or developer because VAT versus registration tax restructures total closing cash by five to fifteen percentage points on some tickets.
Phase three before letting: register lease or STR compliance, obtain CIN, and confirm cedolare election with commercialista. Phase four ongoing: retain rogito, F24 IMU receipts, renovation invoices in one data room for CGT basis and UK/US reporting.
Independent Italian avvocato and commercialista should review before deposit, not after. Seller-recommended advisers create conflict. Home-country CPA or chartered tax adviser should model overlay before you fix budget in euros.
Ready to underwrite Italian property with purchase tax, IMU, and rental layers pre-modeled to your residency profile? Get a curated shortlist of Italian investment properties matched to your budget, prima casa eligibility, STR plan, and UK or US overlay flags before you wire compromesso deposit.
Which deep guides cover each Italian property tax layer?
Each tax has its own page: registration tax and the prezzo-valore mechanism at purchase, IMU at 0.86-1.06% for the annual charge, prima casa versus second home for the 2% relief tests, cedolare secca at 21% or 26% for rental income, and the five-year plusvalenza rule for capital gains.
| Tax layer | Guide slug | What you learn |
|---|---|---|
| Total purchase stack | Cost Of Buying Property Italy | All closing lines including notary and agency |
| Registration tax | Italy Registration Tax Property | Prezzo-valore, 2% vs 9%, fixed fees |
| Prima casa vs second home | Italy Prima Casa VS Second Home Tax | Residency test, clawback, IMU exemption |
| Annual ownership | Imu Property Tax Italy | Formula, deadlines, luxury classes |
| Rental flat tax | Cedolare Secca Italy Rental Property | 21% vs 26%, STR vs long-term |
| Sale gains | Italy Capital Gains Tax Property | Five-year rule, notary withholding |
| Inheritance | Italy Inheritance Law Property Foreigners | Legittima, succession tax, EU election |
| IVIE / IVAFE | Italy Ivie Ivafe Foreign Property Owners | Resident worldwide reporting |
| UK overlay | Uk Tax Italy Holiday Home | SA105, CGT, treaty credit |
| US overlay | Us Tax Italy Rental Property | Schedule E, FBAR, Form 1116 |
Underwriting snapshot
A foreign second-home resale purchase carries 9% registration tax on cadastral value inside a 10-15% all-in closing stack, then IMU at 0.86-1.06% of cadastral value annually and cedolare secca at 21% or 26% on any rent. There is no Italian wealth tax on the property itself.
Insider tip: Cadastral value often sits 35% to 50% below market price on legacy centro storico stock, which reduces registration tax on resale but does not reduce IMU base proportionally because IMU uses the same rendita with coefficient 160. Run both purchase and annual lines in the same spreadsheet.
| Tax | Position for a non-resident second home |
|---|---|
| Registration, from a private seller | 9% of cadastral value |
| Ipotecaria and catastale | €50 each |
| IMU | 0.86% to 1.06% of cadastral value |
| Long-let income | 21% under cedolare secca |
| Capital gains | Taxable if sold within 5 years |
- Every figure here is statutory; the comune sets the actual IMU rate for the address.
- A commercialista should confirm the position before any deposit is wired.
- Prima casa relief does not apply to a non-resident second home.
Frequently Asked Questions
Foreign buyers pay the same Italian purchase taxes, IMU, cedolare secca, and capital gains rules as Italian nationals on the asset itself. The main difference is eligibility: most non-residents buy as second homes at 9% registration tax and full IMU, while prima casa benefits require registered Italian residency within 18 months.
Budget 10% to 12% of purchase price on a typical resale second home: 9% registration tax on cadastral value (often lower than market price), notary fees around 1% to 2%, agency commission 3% plus VAT, and fixed mortgage or land registry fees. New builds from developers use 10% VAT on price instead of registration tax.
IMU on second homes runs from 0.86% to 1.06% of the cadastral taxable base, which equals cadastral rent times 1.05 times 160. On a typical Puglia villa with cadastral rent of 1,200 euros, annual IMU often falls between 1,800 and 2,400 euros depending on the comune rate.
Cedolare secca is Italy's flat substitute tax on rental income. Non-resident landlords elect 21% on standard long-term contracts and 21% on the first short-term tourist property. A second short-term unit triggers 26%. The election replaces Italian IRPEF on that rent but does not eliminate home-country reporting.
Italy charges 26% substitute tax on property gains when you sell within five years of purchase and no exemption applies. Sales after five years are generally tax-free for individuals. Primary residence used for most of the holding period and inherited property are exempt even within five years.
IVIE is an annual Italian tax on real estate held outside Italy by Italian tax residents, charged at 1.06% of value since the 2024 tax period (0.4% where strict main-home-abroad tests pass). IVAFE is 0.2% on financial assets held abroad. Neither applies to a non-resident who owns only Italian property: that owner pays IMU and nothing further on the holding.
Yes, but only with genuine Italian residency. You must register residenza anagrafica at the comune within 18 months of rogito, use the home as your primary abode, and avoid luxury cadastral classes A/1, A/8, and A/9. A pure holiday home purchased while tax-resident in London or New York stays on the 9% second-home track.
Italy taxes source income and certain gains first. UK residents report worldwide rent on SA105 and claim treaty credit for Italian cedolare secca paid. US citizens report Schedule E and Form 1116 foreign tax credit while filing FBAR when Italian accounts exceed $10,000. Neither home country exempts you from Italian IMU or purchase taxes.
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