Buying a second home in Italy: taxation, taxes, and benefits for existing homeowners.
Everything you need to know before signing, updated for 2026.
Those who already own a home, and wish to purchase another, often find themselves navigating a sea of tax regulations that seem designed to discourage. Registration tax, IMU, taxable bases, cadastral coefficients: technical language that risks obscuring what should be, in its essence, an act of desire and freedom.
This article has a precise goal: to bring clarity. It does not replace the advice of a notary or an accountant, which remains essential in a high-value purchase, but it provides the tools to approach the conversation with confidence, already knowing what to expect and where the opportunities for savings lie.
The moment of purchase: taxes on the deed
The most significant tax cost is concentrated at the time of the notarial deed. For those purchasing a second home, meaning a property that will not become the main residence, taxes are structurally higher than for a first home purchase.
Purchase from a private individual: The most common case. Three taxes are due, but two of them are symbolic:
Registration tax: 9% calculated on the revalued cadastral value (not on the market price). For a first home, by comparison, the registration tax is 2%.
Mortgage tax: € 50 (fixed)
Cadastral tax: € 50 (fixed)
Purchase from a builder (VAT-liable party): The structure changes. In this case, the following apply:
VAT at 10% on the sale price (or 22% for properties classified as luxury under cadastral categories A/1, A/8, A/9)
Registration tax: € 200 (fixed)
Mortgage tax: € 200 (fixed)
Cadastral tax: € 200 (fixed)
This is an important distinction: those purchasing high-value properties from a builder, in the new luxury construction segment, need to factor in 22% VAT, an item that significantly affects the total cost.
The price-value mechanism: how to legally reduce the taxable base
There is a legal tool, little known but very effective, that allows for a substantial reduction of the registration tax even on the purchase of a second home: the so-called price-value regime.
This mechanism allows the tax to be calculated not on the price actually paid, but on the revalued cadastral value of the property, which is almost always significantly lower than the market value. Average savings amount to between 30% and 40% compared to what would be paid by applying the tax to the price declared in the deed.
How to calculate the cadastral value for a second home:
Cadastral income × 1.05 × 120 = Taxable base
The coefficient 120 is the one applied to properties not used as a main residence (for a first home, the coefficient is 110).
An important detail: the price-value regime applies only to transactions between private individuals, for residential properties purchased by individuals not acting in the course of a business activity. It must be explicitly requested from the notary before the deed. It also has a further advantage: once chosen, it limits the assessment power of the Revenue Agency, which cannot contest a higher value for registration tax purposes.
IMU: the annual property tax
Once the purchase is complete, the tax cost that accompanies ownership of the second home every year is IMU, the Single Municipal Tax. The main residence (non-luxury) is exempt; a second home is not.
How it is calculated:
Cadastral income × 1.05 × 160 × municipal rate
Rates are set by each Municipality within limits established by law. Starting in 2026, a decree from the Ministry of Economy and Finance introduced a reform reorganizing the entire matter, giving Municipalities greater flexibility in setting rates for different property types.
There are two deadlines: the down payment by June 16 (calculated on the previous year’s rates, unless a new resolution has already been approved), and the balance by December 16.
Note: for properties classified under cadastral categories A/1 (upscale residences), A/8 (villas) and A/9 (castles and historic palazzos), IMU is due even if it is the main residence. Anyone purchasing a high-value residence should keep this in mind from the very start of planning the purchase.
What’s new in 2026: benefits worth knowing about
2026 brings several notable changes regarding IMU on second homes, which can translate into real savings.
Homes kept available for personal use: Municipalities can now offer rate reductions of up to 50% for properties that are not rented out or lent for free use, typically second homes used only during certain periods of the year. To obtain this, limited use must be demonstrated, through utility consumption, presence of furniture, and it must be verified that the municipal regulation explicitly provides for it.
Free loan to first-degree relatives: those who grant free use of their second home to a child or parent can benefit from a 50% reduction in the IMU taxable base. Requirements to be met: the lender must reside in the same Municipality as the property lent for use, and must not own other properties in Italy, with the exception of their own main residence.
AIRE pensioners: Italian citizens residing abroad and registered with AIRE, who receive a pension under an international agreement, can benefit from a two-thirds reduction in IMU (paying only one-third of the amount) on a single property in Italy, provided it is not rented out or lent for free use.
IRPEF and TARI: other items to consider
Alongside IMU, a second home generates two other annual tax items:
IRPEF on cadastral income: if the property is not rented out, the cadastral income, revalued by 5%, contributes to taxable IRPEF income. A cost that is often underestimated, but one that, given the high cadastral incomes common in high-value properties in historic centers, can become significant.
TARI: the waste tax is due by anyone occupying or holding premises and outdoor areas. This applies even to a second home not continuously occupied, except for specific reductions provided by the Municipality (generally between 30% and 50% for homes used non-continuously).
Sale: capital gains and when they aren’t taxed
One aspect that today’s buyer should already keep in mind concerns the tax treatment of any future sale.
The capital gain realized on the sale of a second home is subject to taxation, but with an important exception: if the sale takes place more than 5 years after purchase, the capital gain is not taxed. Before the 5 years, it is possible to opt for a substitute tax of 26%.
New development introduced in 2024-2025: for properties that benefited from the 110% Superbonus, the exemption period for capital gains extends to 10 years from the completion of the works. Anyone who carried out work under this incentive needs to factor in this extended timeframe when planning a future sale.
Tax credit: when you sell and buy again
Finally, there is a particularly useful tool for those who already own a first home with tax benefits and intend to purchase a new one: the tax credit.
If the first home is sold and a new main residence is purchased within two years (a term extended by the 2025 Budget Law, previously it was one year), the taxes paid on the original subsidized purchase can be used as a tax credit. The credit can be deducted from the tax due on the new purchase, or from income taxes.
It’s worth remembering that the tax credit is also due when the new purchase precedes the sale of the old property, provided the latter is sold within the legal deadline.
A final note: consulting as an investment
Every high-value purchase is its own tax story. The variables at play, cadastral category of the property, status of the seller, intended use, residence of the buyer, presence of prior construction work, can significantly change the overall picture.
For this reason, the advice from Via della Spiga Wonderful Houses is always the same: before signing any purchase offer, rely on a trusted notary and tax advisor. The cost of preliminary advice is almost always far lower than the cost of mistakes that could have been avoided.
We are by your side at every stage of the search and negotiation. For any questions, our team is available.
