What are property taxes like for Italian homeowners?
For decades, Italy's first home property taxes were well below the European norm and laughably low compared to rates in big American cities. Under Prime Minister Silvio Berlusconi, first home property taxes were briefly abolished. That changed dramatically with the 2008 financial crisis. Both state and local taxes soared.
Now, annual first home taxes in cities such as Rome and Milan varies between 0.4 and 0.7 percent of the assessed value, depending on size, location, age, and type (apartment, villa, historic venue, etc.) and socio-economic bracket (working class and "refined" are among the categories). Local service fees (including garbage collection) are factored in.
What that means in practice is that a family of four in a 150 square meter owned apartment located in a non-prized area of Rome will usually pay between €200 and €600 annually (there's June and December installment). Upscale first homes can bump up against the €800-1,000 mark. Rental prices will reflect these costs.
Woe to those who own several urban properties, however. That's where real estate taxes can bite hard. The owner of prized second home in Rome's or Milan's city center may pay as much as €5,000 a year. Though these costs still fall far short of rates in cities such as Paris, New York or London, they're in constant flux, meaning that all potential buyers need to check with accountants regarding their ongoing tax bills.