Last reviewed: 26 September 2026 – The answers reflect the law as at this date and have been checked against official sources. New consolidated codes (testi unici) take effect in Italy on 1 January 2027; the answers will then be reviewed again. General information – not tax, legal or financial advice.
🏠 Mortgages and property
Fixed or variable interest rate – what is the difference?
With a fixed interest rate, the rate stays the same for the entire term; you know every instalment from the outset. With a variable interest rate, the rate follows a reference value agreed in the contract (e.g. the Euribor) – so the instalment can rise or fall. There are also mixed forms.
What additional costs arise when buying a home?
If you buy from a private individual, you pay 9% registration tax (2% with the “prima casa” relief, minimum €1,000 in each case) plus €50 each in mortgage tax and cadastral tax; if you buy from a construction company selling with VAT, 10% VAT (4% for a first home, 22% for categories A/1, A/8, A/9) plus €200 each in registration, mortgage and cadastral tax. On top of this come, among other things, the notary, an estate agent where applicable and the costs of the loan.
What tax advantages are there for a first home (agevolazioni “prima casa”)?
With the “prima casa” relief, you pay 2% instead of 9% registration tax when buying from a private individual, and 4% instead of 10% VAT when buying from a company selling with VAT. The requirements include that the home does not belong to cadastral categories A/1, A/8 or A/9, that it is located in the municipality in which you live, in which you will take up residence within 18 months or in which you work, and that you do not hold any other home there, either alone or jointly with your spouse.
🧮 VAT (IVA)
What is the difference between “esente”, “non imponibile” and “fuori campo IVA”?
“Fuori campo IVA” means that one of the basic requirements for VAT is missing. “Esente” transactions are those that the law expressly exempts from VAT (e.g. insurance, health services); “non imponibile” mainly concerns transactions with other countries, such as exports. An important difference lies in the deduction of input VAT.
By when must an invoice be issued?
In principle within 12 days of the time at which the transaction is deemed to have taken place for tax purposes (for goods, as a rule, delivery; for services, payment); for several documented supplies of goods or services to the same customer in the same calendar month, a summary invoice may be issued by the 15th of the following month. Invoices between persons established in Italy are in principle transmitted electronically via the Sistema di Interscambio (SdI).
What VAT applies to renovation and maintenance of a home – 10% or 22%?
For ordinary and extraordinary maintenance of buildings used predominantly for private residential purposes, the reduced rate of 10% applies to the service provided by the firm carrying out the work. Certain “beni significativi” (e.g. windows, boilers) qualify for 10% only up to the value of the rest of the service; the part above that is subject to 22%.
🏛️ Taxes in South Tyrol
Modello 730 or Redditi PF – which tax return do I need?
The Modello 730 is intended for taxpayers whose income comes mainly from employment or pensions; refunds or additional payments are as a rule settled directly through salary or pension. Anyone who has, for example, business income or income from self-employment with a VAT number must use the Modello Redditi Persone fisiche.
GIS instead of IMU: which municipal property tax applies to your own home in South Tyrol?
In South Tyrol, instead of IMU there is the municipal property tax GIS (in Italian IMI). For the main residence, a reduced rate of 0.4% applies; a deduction is subtracted from the tax calculated in this way. The municipality can raise the deduction up to the amount of tax due – in that case no GIS is payable on the main residence.
What is the “cedolare secca” on rental income?
The cedolare secca is an optional flat-rate tax on rental income from homes let by private individuals: 21% of the annual rent, or 10% for an agreed rent (canone concordato) in certain municipalities; for short-term lets, the 21% rate applies to only one home, and 26% to any further homes. It replaces IRPEF, the surcharges, and the registration tax and stamp duty on the tenancy agreement; in return, you waive any rent increase for the duration of the option.
🧾 Regime forfettario
What is the regime forfettario, in brief?
The regime forfettario is a simplified tax regime for natural persons with a business, artistic or professional activity: income is determined on a flat-rate basis using a profitability coefficient and taxed at 15% substitute tax (under certain conditions 5% in the first five years). No VAT is shown on invoices for domestic transactions.
Who may use the regime forfettario? Requirements and revenue limit
In the previous year, revenue must not have exceeded €85,000 and expenses for staff must not have exceeded €20,000 gross. In addition, no statutory ground for exclusion may apply – for example certain holdings or income from employment or pensions above the statutory limit.
How is the tax calculated under the regime forfettario?
The revenue received during the year is multiplied by the profitability coefficient for your activity (40% to 86% depending on the activity); from this you deduct the compulsory social security contributions paid. On the result you pay 15% substitute tax – for a newly started activity, under certain conditions, 5% for the first year and the four following years.
Note
These answers explain general rules and are no substitute for advice on your individual case. For binding information, please contact your bank, a tax adviser, a CAF or the competent authority. More under Disclaimer.