Buying a Property in Turin: Taxes and Fees Explained

Buying a property in Turin, the elegant capital of the Piedmont region in Italy, is an attractive prospect for many individuals and families. However, it is important to understand the associated taxes and fees that come with this significant investment. This article aims to clarify the various costs involved in purchasing a property in this historic city.

1. Purchase Price and Notary Fees
When you buy property in Turin, the initial cost is the purchase price of the property itself. After agreeing on the price, you will need to hire a notary to finalize the sale. Notary fees typically range from 1% to 2% of the purchase price and are crucial for ensuring the transaction is legally binding and all documents are in order.

2. Registration Tax
The registration tax, known as the “imposta di registro,” is one of the primary taxes you will incur when purchasing property in Italy. This tax is usually calculated as a percentage of the property’s declared value. The rates vary depending on whether the buyer is purchasing a first home or a second home. For a primary residence, the rate is generally around 2% of the cadastral value, while for non-primary residences, it can be as high as 9%.

3. VAT (IVA)
If you are purchasing a new property (defined as one that has not been previously occupied), you will be liable for Value Added Tax (VAT). The standard VAT rate for property sales is 10% for residential properties and 22% for commercial properties. It’s essential to include this tax in your budget if considering new developments in Turin.

4. Cadastral Tax
The cadastral tax is another fee prospective buyers need to be aware of. This tax is typically low and is calculated based on the assessed value of the property. This fee can range from €50 to €200 and is usually payable at the time of the deed of sale.

5. Mortgage Fees
If you are financing your property purchase through a mortgage, additional costs will be involved. These may include mortgage arrangement fees, valuation fees to assess the property’s worth, and insurance fees. Typically, mortgage fees can total around 2% to 3% of the loan amount, so it’s crucial to factor these into your overall budget when buying property in Turin.

6. Property Tax (IMU)
After the purchase, property owners are responsible for the annual property tax known as IMU (Imposta Municipale Unica). The tax amount depends on the size, location, and category of the property. In Turin, IMU rates can range from 0.76% to 1.06% of the estimated value. As a homeowner, you should account for this tax in your ongoing costs.

7. Homeowner Association Fees
If your property is part of a condominium or shared building, you will likely need to pay homeowner association fees. These fees cover shared amenities such as elevator maintenance, cleaning, and garden upkeep. The amount can vary, but it's advisable to check before purchasing as it may impact your total monthly expenses.

Conclusion
Understanding the taxes and fees involved in purchasing a property in Turin is essential for making an informed decision. Taking into account the registration tax, notary fees, VAT, and ongoing property taxes can help you budget effectively and avoid any unexpected financial burdens. By being well-prepared, you can enjoy the process of acquiring your dream home in one of Italy's most captivating cities.