Selling Italian property as a non-resident owner

The tax on the gain

The Agenzia delle Entrate describes the rule in one paragraph: a seller can ask the notary, at the time of the deed, to apply a substitute tax of 26% in place of income tax. It concerns capital gains from the sale for consideration of real estate (buildings and agricultural land) bought, built or received as a gift not more than five years earlier; for a gift, the five years run from the donor’s purchase. The regime does not apply to gains that are capital income, or those made in a trade or profession, in a commercial business, or by a partnership, or in relation to employment.

Formula, labelled as a calculation, not as advice: the substitute tax is 26% of the gain. On a gain of €40,000, 26% = €10,400. The tax authority’s page does not say how the gain is computed or which costs count, so ask the notary to work out the base with you.

The tax authority’s page does not say, and this guide therefore does not assert: what happens when the property was bought more than five years earlier, and how a home that was your main residence is treated. Ask the notary and an accountant, and see capital gains tax on property in Italy. Article 67 of the income-tax code, which sets this rule, is repealed from 1 January 2027 by Legislative Decree 117/2026, which rewrites the rule; Payotte has not read the new text, so for a sale after 31 December 2026 check the position with the notary.

Treaties: Italy may tax the gain, and your home country may too

Both treaties read use the same wording in article 13(1): gains a resident of one state derives from selling immovable property situated in the other state may be taxed in that other state. For a British seller of an Italian flat, that means Italy has the right to tax it. For a US resident selling Italian property, the same.

Two limits on this statement. First, the article gives Italy the right to tax; whether tax is due is decided by Italian domestic law, summarised above. Second, the treaties do not say that your home country gives up its own tax: how the two systems fit together, and what relief you get, is a question for an adviser in your country. Payotte did not read the Canadian treaty, so if you are Canadian, read it on the Government of Canada site or ask your adviser.

What the notary checks on the seller’s side

The notariat’s guide for foreigners lists what the notary ensures, and each item is the seller’s responsibility to document:

• Ownership and the right to sell. The notary verifies identity, matrimonial property regime and any power of attorney.
• No mortgages or liens. The notary must ascertain that none is recorded against the property in the land records.
• Service charges. Before the deed the building’s manager should issue a statement that the seller has paid the charges, because the buyer is liable for the previous year’s unpaid charges.
• Cadastral conformity. The tax authority adds that the deed must state, on pain of nullity, not only the cadastral data but the reference to the floor plans filed with the cadastre, together with a declaration by the owners that the real situation matches the cadastral data and plans (this declaration may be replaced by an attestation by a qualified technician). The notary must identify the cadastral owners and check they match the land records.
• Planning compliance. The guide says the necessary checks must be in place that the property is in order for building and planning permissions.

A non-resident seller should therefore ask the notary early for the list of papers and get the cadastral and planning position checked by a local professional.

Signing from abroad

If you cannot travel, an attorney can sign for you under a power of attorney. The same rules apply as for a buyer: the document must be in the form the contract requires, carry an apostille or legalisation, and pass the notary’s legality check. Italian consulates exercise notarial functions only for Italian citizens abroad, so a non-Italian owner uses a notary or equivalent where they live. See buying with a power of attorney from abroad, which applies equally to a sale. You will also need an Italian tax code; see the tax code guide.

Fees and commission

No law sets the agent’s commission. L. 39/1989 art. 6 says that, absent an agreement, the amount and how it is shared between the parties are set by local custom through the chamber of commerce. The notary must give a written estimate before taking the job (D.L. 1/2012, art. 9). Quotes you receive are negotiated figures, not statutory ones. For the pricing side, see estate agent commission in Italy.

Where the money goes

The tax authority’s page does not describe moving the proceeds abroad, and Payotte read no official source on it. Ask the notary and your bank before the deed how the price will be paid, since the deed must declare how it was paid; see opening an Italian bank account to buy, whose declaration rules apply to the parties of any sale.

Which professional to consult

A notary applies the substitute tax if you ask and checks the property file. A real estate agent values and markets the property and may sign the exclusive mandate you agree. A surveyor or architect regularises cadastral or planning gaps before the deed. An accountant in your home country covers your own tax return. See notaries, real estate agents, surveyors and architects. Payotte does not list or rank notaries.