Italy 2026: what changed for foreign buyers

This is a briefing for agencies and developers on what is different for foreign buyers of Italian property in 2026. We separate what is reported by more than one source from what rests on a single summary. Italian tax and rental rules move often, and municipalities add their own, so the text names the points to confirm with a local adviser.

Short-term rentals: the flat tax and the national code

A 2026 law-firm summary of the Budget Law says the flat tax on short-term rental income applies to a maximum of two properties a year: 21 percent on one property and 26 percent on the other, and a landlord with three or more properties is treated as running a business, with VAT registration and ordinary income taxation (see the summary of the 2026 Budget Law). Another source describes the same split. Neither quotes the law, so confirm it with an Italian tax adviser before you put it in a brochure for a buyer who plans to let.

Separately, since 1 January 2025 every short-term let in Italy must carry a national identification code, the CIN. Consultancy and platform help pages describe fines of EUR 800 to 8,000 for having no code and EUR 500 to 5,000 for not displaying it, and say that major platforms must delist properties without a valid code (see this April 2026 page on the CIN for foreign investors). Tell buyers who want a holiday let that the code, safety equipment and local rules come before the first booking, and that a flat in a building that bans short lets cannot be used that way.

Purchase taxes for non-residents

A consultancy page gives the 2026 position for a non-resident buying a resale second home as 9 percent registration tax on the cadastral value, plus fixed cadastral and mortgage taxes of EUR 50 each. It says the 2 percent rate for a primary residence is not available to non-residents unless they move their residence to the municipality within 18 months (see the 2026 non-resident guide). For a new build from a developer, it gives VAT of 4 percent for residents only, 10 percent for non-luxury second homes and 22 percent for luxury property. These are summaries; the notary will apply the regime to the actual case.

Because the tax can be charged on the cadastral value rather than the price, the amount due is often lower than buyers expect. Do not promise a figure. Ask the notary for a written estimate before the compromesso.

Annual property tax

Non-residents pay the municipal property tax, IMU, with no primary-residence exemption. One consultancy page gives a range of 0.4 to 1.06 percent of the revalued cadastral value depending on the municipality, while others describe a base rate of 0.86 percent that municipalities can raise to 1.06 percent. We do not quote a single rate: it depends on the municipality, and your buyer should ask for the local rate before buying.

A new-resident flat tax for wealthy relocators

The same law-firm summary says the annual flat tax on foreign-source income for new residents rises from EUR 200,000 to EUR 300,000. This matters only to a small group of wealthy buyers who plan to move their tax residence to Italy, but they are exactly the buyers who ask their agent about it. Do not give tax advice; pass them to a qualified adviser and keep a record that you did.

Residence is not part of the purchase

Buying a home in Italy does not by itself give a right of residence. Agents should not imply that a purchase leads to a permit. A non-EU buyer who needs a residence permit must follow the immigration rules separately, and the notary may also ask about a permit when checking reciprocity. See our briefing on serving expat and cross-border buyers in Italy.

Anti-money-laundering: the next standard

At EU level, the anti-money-laundering regulation, Regulation (EU) 2024/1624, is reported to apply from 10 July 2027, to treat real estate agents as obliged entities and to require customer checks for occasional transactions of at least EUR 10,000. Italian agents are already within the national decree, and the notary's declarations about how the price was paid make the trail visible in every deed. See our briefing on payments and remote closing. The sensible step now is to bring your onboarding up to that standard before you are required to.

What to do this quarter

• ask a tax adviser to confirm the short-term rental flat tax and the number of units before you quote it
• check that every holiday-let listing you handle shows the national code and that the building allows lets
• give buyers written estimates of registration tax and notary fees from the notary, not from a rule of thumb
• tell non-residents early that the lower primary-residence rate is not available unless they move residence within 18 months, and ask the notary to confirm the conditions
• send wealthy relocators to a qualified adviser and keep a dated note of that referral
• update your client-onboarding checklist for the 2027 standard

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.