Registration tax when buying luxury real estate in Italy

Buying luxury real estate is not only a major investment, but also a significant tax liability. First of all, it is important to understand that when purchasing luxury properties, you cannot take advantage of the tax benefits provided for the "first home". This means that taxes are paid at the full rate, even if the property you are buying is your first and only home.

What real estate is considered elite for tax purposes

According to the legislation (in particular D.Lgs. 175/2014), "luxury homes" (abitazioni di lusso) are understood to mean properties classified in the following cadastral categories:

A/1 — executive class housing (abitazioni di tipo signorile);
A/8 — villas;
A/9 — castles and historical-artistic monuments (castelli e palazzi di eminente pregio artistico o storico).

In addition to the category, the characteristics of luxury housing are also specified in the Ministerial Decree of August 2, 1969. These characteristics are important in determining the application of the VAT rate and other taxes. For example:

total area over 240 sq.m (excluding balconies, terraces, basements, attics, stairs and parking);
availability of swimming pools, tennis courts and other facilities of increased comfort;
high-class finishing: marble, expensive tiles, natural wood, etc.

How much is the registration tax when buying luxury real estate

The amount of tax depends on whether the seller is an individual or a company subject to VAT. The main scenarios are as follows:

If the seller is a private individual :

Registration tax - 9% of the cadastral value of the property;
Cadastral and mortgage taxes - 50 euros each (fixed amount).

If the seller is a company subject to VAT :

VAT - 22% of the purchase price;
Registration, cadastral and mortgage taxes - 200 euros each (fixed amount).

Important: Unlike regular real estate (categories A/2 – A/7), housing in categories A/1, A/8 and A/9 cannot claim the reduced tax rate of 2% even when purchased as a first home.

Comparison: luxury vs regular real estate

Property type	Category	Reg. tax (first purchase)	Taxes: cadastral and mortgage	Note
Normal (first)	A/2–A/7	2% of the cadastral value	50 euros each	Subject to conditions
Normal (second)	A/2–A/7	9%	50 euros each	No benefits
Elite (any)	A/1, A/8, A/9	9%	50 euros each	Benefits do not apply
Elite from a legal entity (with VAT)	A/1, A/8, A/9	22% VAT	200 euros each	All taxes are fixed

Other important taxes

IMU (property tax) : paid even for the first home if it is luxury;
TARI (tax on waste disposal) : no benefits, calculated based on local rates;
Fines for failure to pay the registration tax can reach 120-240% of the tax amount if the payment is missed entirely. A 30% fine is provided for late payment. You can use ravvedimento operoso , a mechanism to mitigate sanctions for voluntary payment.

Conclusion and recommendations

Purchasing luxury real estate requires a clear understanding of all taxes and possible obligations. It is recommended:

Check the cadastral category of the object;
Specify who the seller is (an individual or a company with VAT);
Contact qualified specialists: notaries, tax consultants, architects - to avoid mistakes and subsequent fines.