Taxes and costs of buying property in Italy (as a foreigner too)

The price in the listing isn't what you actually spend. In Italy, on top of the property price, a purchase carries taxes and extra costs that can add up significantly — and that work differently depending on who sells, what you buy and how you'll use it. For those arriving from abroad the system is fully accessible, but it's worth understanding it before you sign. Here's the map, with the caveat that exact rates should always be verified with your notary and on the official channels of the Italian Revenue Agency, because they can change.

The first question: buying from a private seller or a company?

This is the watershed that decides which taxes you pay.

• From a private seller (the most common case on Lake Como): registration tax applies, plus mortgage and cadastral taxes at a fixed amount. No VAT.
• From a building company (new-build or company-renovated, within certain terms): VAT applies on the price, plus registration/mortgage/cadastral taxes at a fixed amount.

The two routes lead to very different totals: clarifying who the seller is comes first.

The crucial difference: price vs cadastral value

This is the point that surprises buyers most, especially from abroad. When you buy from a private seller, registration tax isn't necessarily calculated on the price paid — it can be calculated on the property's cadastral value (the "price-value" mechanism for residential properties bought by individuals). The cadastral value is usually much lower than the market price: this significantly reduces the effective tax compared to what the rate applied to the full price would suggest.

It's a real and often-overlooked advantage: two buyers paying the same price can face different taxes depending on the applicable tax base. Have your notary explain it case by case.

Main home or second home?

The other key variable:

• Main home (prima casa) reliefs: reduced rates, provided you meet the requirements — including, as a rule, residence in the municipality within a certain term. For many non-resident foreign buyers the main-home relief is not applicable, save specific cases.
• Second home: the ordinary rate. This is the typical scenario for someone buying on the Lake as a holiday home or investment.

Which of the two applies materially changes the total: check your position before making an offer.

The other costs to budget for

Beyond the purchase taxes:

• Notary fee — mandatory in Italy; the notary is an impartial public official who guarantees the legality of the deed.
• Agency commission — usually payable by the buyer too.
• Technical costs — due diligence (cadastral and planning compliance), any survey, and if you're abroad, translations and power of attorney.
• Annual taxes — second homes pay IMU every year; put it in your running budget.

Buying as a foreigner: what you need

The Italian system is open to foreign buyers (the reciprocity principle generally applies). In practice you'll need:

• An Italian tax code (codice fiscale).
• Typically an Italian bank account for traceable payments.
• If you can't attend the closing, a power of attorney.
• A trusted local technical professional for the due diligence: on Lake Como the landscape constraints and appurtenances need an expert eye.

For most buyers there's no additional "foreigner tax": you pay the same taxes as a resident, with the differences tied to main/second home and residence.

The total that really matters: total cost

The most common mistake is to reason on the asking price. The number to watch is the total cost of purchase — price + taxes + notary + commission + any works — compared against the property's real value. If you buy to add value, add the renovation cost and the potential value after the works: only then do you know whether you're getting a deal or overpaying. On how to read value and potential before signing, see the guide buying property on Lake Como.

Como — historic centre

Apartment in Como's historic centre

200 m², 3 bedrooms, panoramic terrace