Real Estate Taxes

How real estate is identified
Real estate is identified using the land registry categories assigned by the provincial offices of the Inland Revenue (previously offices of the Department of the territory or Technical Tax Offices) that are normally reported in the legal documents with which the same real estate is transferred.
Each urban real estate unit belonging to groups ‘A’, ‘B’ and ‘C’ is assigned a category and class according to its internal and external characteristics, and its intended use. After that the official value of the property is determined, by applying the valuation rate defined for each category and class and published in the Official Journal. The real estate units belonging to groups ‘D’ and ‘E’ are assigned the relative category and value by carrying out a direct estimation.

How the official value of property is determined
The official value of property is obtained by multiplying the size of the real estate unit (rooms, square metres or cubic metres) times the valuation rate.
For example, for an apartment belonging to the land registry category A/2, class 5, situated in an average municipality with only one census area, it is possible to identify in the Official Journal a rate that, multiplied by the number of rooms, provides the official value of the real estate property. So, if the rate is of 300 euros and there are 4 rooms then the value will be 1,200 euros.
In order to take account of the cost of living, an established official property value can be ‘re-evaluated’, that is it can be increased by a certain percentage, thus incrementing also the base for the application of taxes.

How the official value of property is determined
Owners must report new buildings to the provincial office of the Inland Revenue within 30 days from the time the building become habitable or in any case suitable for their intended use.
Currently, by using the electronic procedure named DOCFA (Documenti Catasto Fabbricati), the taxpayer suggests the official property value, with the help of a qualified expert.
In case the Inland Revenue amends the official property value already assigned or suggested by the taxpayer, it must notify the interested person of the new value established. It is possible to lodge an appeal against this decision to the competent tax commission, within 60 days of its notification.

Variations and transfers
Whoever must register a document for the transfer property rights of real property or submit a declaration of inheritance (usually a notary or the heir) is also required to lodge a request for transfer to the provincial office of the Inland Revenue, within 30 days of the registration.
The request allows the registration of the land registry documents and the transfer of full ownership or of any other property right.
This obligation can be absolved by public notaries requesting the ‘automatic transfer as per the transcription note’, on the basis of which the adjournment of the land registry documents is directly carried out, with the help of the information provided for the transcription, in the land registry offices.
Should there be variations of an objective character, meaning variations that have concerned, in a permanent way, the type, consistency or intended use of the real estate; the interested parties are required to submit a specific request to the provincial office of the Inland Revenue. This must be done by 31st January of the year following the one in which the works were terminated.
Currently, variations and transfers can be handed in on magnetic storage support, thus allowing the immediate updating of the documents.

Buildings taxation
Real estate – land and buildings – are subject to taxes that affect their income (Irpef and its supplements), their possession as assets and their transfer, carried out either by deed between living persons – such as endowment or acquisition – or by inheritance, as well as by usucaption.
In case of transfer on the basis of acquisition, the taxes applied are the registration fee (or alternatively VAT), and the mortgage and cadastral tax. In case of transfer on the basis of endowment (or inheritance), as well as the mortgage and cadastral taxes, the inheritance and endowment duties are owed. The latter varies according to the beneficiaries involved (see “Inheritance and Endowments”).
Please note that, according to the principle of alternativity, for acts subject to VAT the proportional registration fee is not applied. The fixed registration fee, the mortgage and cadastral taxes are in any case owed.
As regards Irpef, the income deriving from real estate is cumulated with the other forms of income of the owner and taxed according to the rates foreseen for this tax.
Since Irpef rates are progressive, the same income deriving from real estate can therefore be taxed to a greater or lesser extend depending on the amount of the overall income in which it is included.

Acquisition of real estate
In the event of acquisition of real estate, registration fee is applied or alternatively VAT (depending on the seller) as well as the mortgage and cadastral taxes.
Please note that, according to the principle of alternativity, for acts subject to VAT the proportional registration fee is not applied. The fixed registration fee, the mortgage and cadastral taxes are in any case owed.
How taxes are calculated
Registration, mortgage and cadastral taxes
These taxes (registration fee, mortgage and cadastral taxes) are paid by the notary at the moment of registration.
For the sale of real estate for living (and relative outbuildings) carried out with regard to individuals who do not have commercial, craft or professional activities, the taxable base for the purposes of registration fee, mortgage and cadastral taxes can be provided by the cadastral value of the real estate, instead of the price paid.

Taxes on inheritance and donations

Taxes on inheritance and donations in Italy

The transfer of property and rights caused by death occurred after 3rd October 2006 is subject to inheritance and endowments tax.

Who has to pay and how much has to be paid        

The heirs and legatees who benefit from the following property and rights shall pay this tax:

  • real estate and rights from real estate. The evaluation of the property is done by multiplying the cadastral revenue by the relevant updated coefficients;
  • shares in the capital of a company (the value is given by the net equity);
  • bonds (excluding government bonds);
  • companies (the value is given by the net equity without evaluating immovable goods and good will);
  • credits and money;
  • movable goods (jewels, furniture).

The taxable base is made up of the total net value of the hereditable assets, that is to say of the value of the property and the rights object of the inheritance, net of liabilities and deductible expenses (debts of the deceased, medical expenses and funeral expenses).

The inheritance tax is determined by the office which applies different rates according to the degree of kinship of the heir.

The transfer of companies and company shares are not subject to tax if the heirs work in the company or hold control of the company for a period not less than 5 years from the date of the transfer and if they provide the correct declaration in the declaration of inheritance.

Inheritance declaration

The declaration must be submitted within one year of the date of the start of the inheritance, which usually coincides with the date of the death of the taxpayer.

The form must be filled in: it can be obtained from any local Inland Revenue office or it can be downloaded from the Inland Revenue website ( and subsequently submitted at the local Inland Revenue office where the deceased had his/her last residence. If any other form is used, the declaration is null and void.

Those who are obliged to submit the declaration

The following persons are obliged to submit the declaration of inheritance:

  • the heirs and legatees, or their legal representatives;
  • those in possession of the property, in the case of absence or declaration of presumed death;
  • the administrators of the inheritance;
  • the trustees of the vacant succession;
  • the executors of the will;
  • the trustees.

If more than one person is obliged to submit the declaration it is sufficient that it is submitted by just one of these persons.

The heirs and the legatees who have submitted the declaration of inheritance are exonerated from the payment of ICI.

The Inland Revenue office receiving the declaration of inheritance shall pass a copy of it on to each municipality where the properties are located.


Taxes concerning endowments and voluntary transfer deeds and rights have also changed due to the effect of the measures cited, which have substantially eliminated taxation on such transfers by applying the register tax.