Want to sell your home without any tax surprises?
Trust Engel & Völkers: our consultants will guide you in managing taxes and every phase of the sale, with precise valuations and personalized strategies.
- 5 min read
Taxes Associated with Selling a House
When you decide to sell a house, the focus is often on the sale price and negotiations with the buyer. However, an equally important aspect concerns the taxes and fiscal charges related to the transaction. These can significantly impact the final net gain and should be carefully considered during the planning phase.
Understanding in advance which taxes apply not only helps avoid surprises but also allows you to manage the sale more consciously and efficiently.
Table of Content
Notary Fees and Incidental Expenses
Municipal Taxes and Other Possible Charges
Real Estate Capital Gains Tax
Differences Between Individuals and Companies
Practical Examples of Tax Calculation
Why Trust Engel & Völkers
Notary Fees and Incidental Expenses
The notary plays a central role in real estate sales, ensuring the legality of the deed. The seller may be responsible for some related expenses, including:
notary fees for the preparation and registration of the deed,
registration, mortgage, and cadastral taxes in particular circumstances (e.g., private sales with specific conditions),
any urban planning and energy certifications required for the closing.
These costs vary based on the property's value and the complexity of the transaction, but it is important to consider them in advance to avoid affecting the final profit.
Municipal Taxes and Other Possible Charges
At the time of sale, the owner must be current with the payment of municipal taxes, such as IMU and TASI, up to the date of the deed of sale. Furthermore, if the property is part of a condominium, extraordinary expenses approved before the sale may remain the seller's responsibility.
Transparency on these matters is crucial to avoid disputes with the buyer and to ensure a smooth transaction. For a complete overview of all necessary paperwork, consult our guide to the documents for selling a house in 2025.
Real Estate Capital Gains Tax
One of the most significant taxes is the real estate capital gains tax, which applies when a profit is made from the sale. The capital gain is the difference between the selling price and the purchase price (potentially revalued).
The tax applies if the house is resold within 5 years of its purchase.
There are exceptions: for example, it is not due if the property was used as the seller's primary residence for most of the time between purchase and sale, or in the case of properties received through inheritance or, in some cases, by donation.
The seller can choose to subject the capital gain to a separate taxation with a substitute tax (26%) or declare it in their taxable income for IRPEF purposes. nel proprio reddito imponibile ai fini IRPEF.
Differences Between Individuals and Companies
The tax treatment varies depending on whether the seller is an individual or a company:
For individuals, taxation follows the criteria seen for capital gains and, if applicable, IRPEF.
For real estate companies or other legal entities, capital gains contribute to business income and follow the rules of ordinary taxation.
This distinction is crucial for investors, who must carefully evaluate the tax regime applicable to their operations.
Practical Examples of Tax Calculation
Case 1: Sale with Capital Gain
Purchase at €200,000 → sale at €280,000 within 3 years.
Capital Gain: €80,000 → 26% tax = €20,800 in tax.
Net Revenue: €259,200.
Case 2: Sale without Taxable Capital Gain
Purchase at €300,000 → sale at €330,000 after 7 years, used as a primary residence.
No tax on capital gains. Net Revenue: €330,000.
These examples show how the tax variable can significantly affect the actual profit.
Why Trust Engel & Völkers
Dealing with the sale of a property means managing not only the negotiation but also fiscal and bureaucratic aspects that can be complex. Engel & Völkers supports you with:
transparent advice on applicable tax charges,
an accurate property valuation, which also considers the impact of taxes on the final revenue,
comprehensive assistance, from the initial analysis to the conclusion of the notarial deed.
With Engel & Völkers, you have a reliable partner by your side, allowing you to handle the sale safely, consciously, and without surprises.
FAQ on Selling a House and Taxes
Generally, the payment of notary fees is the responsibility of the buyer. However, the seller may have to bear some incidental costs, such as certifications and documentation required for the deed.
No, if the property was used as your primary residence for the majority of the time between the purchase and the sale, the capital gain is not taxed, regardless of the period of ownership.
After 5 years from the purchase, the sale is not subject to capital gains tax, with some specific exceptions.
Yes, the seller is required to pay IMU and TASI up to the date of the notarial deed. From the moment the property is transferred, the taxes become the buyer's responsibility.
In this case, the capital gains from the sale contribute to the company's business income and are subject to the ordinary taxation provided for by the company's tax regime.