How to buy an apartment in Italy: a step-by-step guide for Russians

Italy traditionally attracts foreign investors interested in profitable real estate investments. However, the most common mistake when purchasing properties is underestimating the tax burden, which can increase the final cost of buying and maintaining housing. The amount depends on the type of property, its value, and the owner’s residency status.

It is a mistake to assume that tax rates are the same for everyone. Without a detailed understanding, one may face unexpected expenses, such as a tax on second properties or additional fees for rental housing.

Let’s delve into detail on what property taxes an investor in Italy must pay, how the cadastral value of housing is calculated, what benefits exist when purchasing, and what additional expenses are important to consider.

What taxes does a foreign investor pay in Italy

When buying property in Italy, investors encounter various types of taxes, which can be divided into mandatory and annual fees.

Taxes on property purchase

When acquiring residential properties, foreigners must pay:

1. Registration tax (Imposta di Registro) — 9% of the cadastral value of real estate in Italy if purchased from a private individual.
2. VAT (IVA) — 4%, 10%, or 22% if the property is purchased from a developer.
3. Stamp duty (Imposta di Bollo) — 50 euros.
4. Mortgage tax and cadastral fee – 2% and 1% of the property value.

Taxes on property ownership

After purchasing a property, the following annual payments are made:

1. IMU — property tax, rates range from 0.4% to 1.06% depending on the region.
2. TASI — municipal service fee, rate – 0.1%–0.3%.
3. TARI — fiscal waste disposal fee, amount depends on the area and number of occupants.

These property taxes in Italy depend on the property value and region. For example, rates are higher in Milan compared to southern provinces.

How is the cadastral value calculated and why is it important

The cadastral value of real estate in Italy (Valore Catastale) is the assessed value of the property determined by government authorities based on the property category, location, and type of use. The amount is usually lower than the market price, with a difference of 30-50%. The government assessment is used for tax calculation, so it is important to consider it before purchasing.

The assessed value is based on coefficients multiplied by the base price per square meter set for each type of property. Residential properties have coefficients of 110–160, while commercial properties have coefficients of 40–80. These coefficients are periodically reviewed by Italian authorities.

How the assessed value affects taxes

Several key taxes depend on the cadastral value:

1. Registration fee — 9% of the cadastral assessment when purchasing property from a private individual.
2. IMU — property ownership tax, calculated based on a coefficient multiplied by the base value. The higher the assessment, the higher the tax.
3. TARI — waste disposal fee, directly related to the cadastral value: higher assessment leads to higher payments for municipal services.

If an investor chooses property with a lower assessed value, they can significantly reduce the tax burden. However, before purchasing, it is advisable to consult with specialists, as properties with underestimated cadastral values may have legal or operational restrictions.

What tax benefits are available to foreign investors

There are benefits for foreign buyers when purchasing property in Italy:

1. First property: if the property is purchased for personal use, the registration fee is reduced to 2%.
2. For residents: if residency is established, one can avoid IMU on primary housing.
3. IVA rate: when buying new construction, one can benefit from a reduced 4% rate.
4. IMU reduction for rented property: if the property is rented with an official contract, the IMU rate is reduced by 25%.

It is important to find out in advance what benefits are available and how to apply for them.

What property taxes need to be paid annually in Italy

Property owners in Italy annually pay mandatory taxes related to property and municipal services:

1. IMU — property tax. Required for all properties except primary residences (unless they are luxury properties like villas, castles, historic buildings):

• rate: from 0.4% to 1.06% of the cadastral value;
• payment: twice a year — in June (advance) and December (final payment).

2. TASI — municipal service tax. Covers expenses for lighting, roads, security:

• rate: up to 0.3% of the cadastral value;
• who pays: owner, sometimes the tenant.

3. TARI — waste disposal tax. Depends on the property area and number of occupants:

• calculation formula: base rate × area + adjustment based on occupants;
• payment: once a year or quarterly.

4. Rental income tax. When renting out property, the tax on income is:

• Cedolare Secca — 21% (fixed rate);
• IRPEF — from 23% to 43% (progressive scale).

5. Penalties for non-payment:

• 30% of the amount owed + late payment interest;
• property seizure is possible.

Conclusion

Acquiring property in the beautiful European country is a profitable investment, considering all the obligations placed on the buyer. Property taxes in Italy include both one-time expenses at the time of purchase and annual payments that can significantly impact the owner’s budget. Ignoring tax nuances can lead to additional expenses, while careful planning can result in significant savings. By determining the cadastral value of real estate in Italy in advance, one can correctly calculate upcoming payments and minimize the tax burden. A sensible approach to taxation is the key to successful property ownership and high return on investment.

Pizza, Colosseum, Fellini – not the only reasons why the query “how to get Italian citizenship” consistently holds high positions in search engines. An Italian passport provides freedom in 190 countries, access to top European healthcare, and full rights in the EU. Obtaining it is a complex process with clear conditions, deadlines, and legal nuances.

Citizenship by Descent

The most direct answer to the question of how to get Italian citizenship sounds simple: prove the presence of Italian ancestors. Sounds easy, but in practice, it’s a quest involving archives, apostilles, and tons of legal details.

The scheme is based on the principle of “jus sanguinis” – right of blood. The law allows obtaining Italian citizenship through lineage even if ancestors emigrated more than a century ago. The key is to prove the continuous transmission of citizenship status through generations.

Key conditions:

• direct descent from an Italian citizen (before 1948 – only through the male line);
• absence of ancestor’s naturalization before the birth of the next generation;
• full set of supporting documents: birth, marriage, death certificates, naturalization proof (or its absence).

Example: Marco Ricchio, born in Buenos Aires in 1985, obtained Italian citizenship in 2021. He proved that his great-grandmother emigrated from Tuscany in 1903 without losing citizenship before his grandfather’s birth.

Marriage to an Italian Citizen

Love for a citizen of the Italian state not only offers a chance for family bliss but also for an Italian passport. The state requires passing the test of time and language proficiency.

How to get Italian citizenship through marriage:

• officially marry;
• live in marriage for at least 2 years in the country or 3 years – outside it;
• demonstrate Italian language proficiency not lower than B1;
• provide evidence of cohabitation and stability of the marriage.

Fact:
After submitting the application, the country’s Ministry of Interior considers the case for about 2 years. It can be faster, but more often – longer. The program includes a mandatory check for the authenticity of the relationship.

How to Obtain Italian Citizenship through Naturalization

Naturalization in Italy is the longest but most reliable path to citizenship. This option is suitable for those who have already gone through the immigration process and intend to link their life with this country. To obtain citizenship, one must live in the country for 10 years, have a stable income above the minimum, and have no criminal record. Authorities also require proof of integration into society. This is expressed in paying taxes, official employment, and active participation in social life. Knowledge of the Italian language at level B1 is a mandatory condition, confirmed by certification. From 2023, the document submission process is fully digitized. Applications are sent through an online platform after passing the identification procedure through SPID or CIE.

Investments as a Gateway

Some investors wonder how to obtain Italian citizenship even without roots or partners in the country. The answer is the country’s investment residency program.

Scheme:

1. Invest in the economy – from €250,000 (startup) to €2,000,000 (government bonds).
2. Obtain Italian residency for up to 2 years.
3. Live in the country for a minimum of 10 years.
4. Apply for Italian citizenship through naturalization.

The investment residency does not guarantee automatic citizenship status. It allows a legal start towards it with accelerated residency conditions.

Birth on Italian Soil: Exceptions and Nuances

The principle of “jus soli” does not automatically apply in the country. In certain cases, children born on Italian soil to foreign parents are given the opportunity for naturalization.

How to obtain Italian citizenship by birth:

• be born in the Italian state to foreign parents legally residing;
• submit an application after turning 18, provided continuous residence in the country since birth.
  

In 2021, the government was considering a reform to simplify the process, but it has not yet come into effect.

Full List of Documents

To apply for Italian citizenship regardless of the basis, you will need to prepare an extensive document package. In practice, successful cases are handled by lawyers, considering strict requirements for translation, apostille, and notarization.

Mandatory list:

• passport and ID card;
• Italian residency permit (if applicable);
• birth, marriage, divorce certificates (depending on the basis);
• certificate of no criminal record;
• income proof for the last 3 years;
  
• B1 certification;
  
• payment receipt of €250 fee;
  
• proof of tax payments.
  

More on How to Obtain Italian Citizenship

The law clearly outlines five legal paths. Each requires an individual approach, compliance with conditions, and a precise strategy.

1. By Descent. Granted to descendants of Italians who retained citizenship before the birth of the next generation. Distant lines of kinship are allowed if the applicant can document the entire chain. Female line – only after 1948.
2. By Marriage. Union formalized after 2 years of cohabitation in the country or 3 years outside it. Mandatory language proficiency (B1 level), no criminal records, legal union.
3. By Naturalization. Possible in the country after 10 years of legal residence. Requires stable income, language proficiency, no offenses, and full integration.
4. By Investments. Italy’s investment residency program requires investments from €250,000 to €2,000,000. After 10 years, the opportunity to apply for Italian citizenship through naturalization.
5. By Birth. Citizenship granted to migrant children born and continuously residing in the country until 18 years old. Application must be submitted before turning 19.

How to obtain Italian citizenship is a question that is answered only with strict compliance with all requirements. Each path leads to an Italian passport but requires precision, time, and legal preparation.

Conclusion

How to obtain Italian citizenship is not rhetoric but a clear action plan. There are many options: lineage, love, investments, patience, or integration. Italian citizenship has become a reality for more than 123,000 people in just the past year. Success depends not on love for the country but on the ability to meet legal requirements and complete the process.