Introduction
If you’re considering buying a new property—whether it’s an apartment in a new residential complex or a newly built villa—it’s important to understand what taxes you’ll have to pay at the time of the notarial deed. This often-overlooked aspect can significantly impact the overall budget of your investment.
In this article, we explain clearly and with updates for 2025, what taxes apply to the purchase of newly built properties, the tax benefits available to private individuals, and how things change if you buy with or without “first home” benefits.
1. When Is a Property Considered “New Construction”?
A property is considered “new” when:
● It was built less than 5 years ago;
● The seller is the construction or renovation company;
● The property has never been previously inhabited.
The building can be:
● newly constructed;
● subject to demolition and reconstruction;
● subject to complete renovation.
In these cases, the purchase is subject to VAT and other indirect taxes.
2. Applicable Taxes
| Tipe of Tax | Without Benefits | With “first home” Benefits |
| VAT | 10% | 4% |
| Registration Tax | Fixed : € 200 | Fixed : € 200 |
| Mortgage Tax | Fixed : € 200 | Fixed : € 200 |
| Cadastral Tax | Fixed : € 200 | Fixed : € 200 |
Note: VAT is calculated based on the price declared in the sale contract.
3. Tax Benefits for Buying a “First Home”
Those purchasing their first home can take advantage of significant tax benefits, including:
● Reduced VAT at 4% (instead of 10%);
● Fixed mortgage, cadastral, and registration taxes (€200 each);
● IRPEF deduction on mortgage interest payments, if the mortgage is used for the purchase.
To be eligible for the “first home” benefits, you must:
● Have residency in the municipality where the property is located (or move it there within 18 months);
● Not own other properties bought with “first home” benefits;
● Not own other properties in the municipality where the purchase is made.
4. Differences When Buying from Private Sellers
If you buy a property from a private individual (or from a company selling after 5 years from construction), taxes change:
● No VAT;
● Proportional registration tax (9% or 2% with first home benefits, calculated on the cadastral value);
● Mortgage tax: €50;
● Cadastral tax: €50.
5. Other Costs to Consider
In addition to taxes, don’t forget to consider:
● Notary fees (vary based on the property’s value and the type of contract);
● Brokerage fees (if buying through a real estate agency);
● Possible mortgage assumption or new financing costs.
6. Warranties
Buying in a new development offers you:
● Surety bond guarantee for all payments;
● 20-year warranty on the work carried out;
● Energy efficiency to reduce operating costs;
● Earthquake-resistant safety;
● Removal of architectural barriers;
● Cutting-edge installations;
● Personalized interior finishes;
● Tax benefits.
Conclusion
Buying a new construction offers advantages in terms of energy efficiency and housing comfort, but it’s essential to be well-informed about the taxes involved in order to plan your investment properly.