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Italian substitute tax on mortgages and loans — 0.25% or 2%

Loans running for more than 18 months pay a one-off substitute tax instead of registration, stamp, mortgage and land registry taxes: 0.25% of the amount lent, rising to 2% for loans to buy, build or renovate a home that does not meet the main-home (prima casa) conditions. On a EUR 200,000 main-home mortgage that is EUR 500.

2026 rules — verified on September 25, 2026Free, no account

This content is part of the path: Buying a home in Italy· Step 5 of 10· Next step: Italian tax credit for estate agent fees

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Sources and assumptions

  • Gazzetta Ufficiale — DPR 29 septembre 1973 — tax year 2026, verified on September 25, 2026
    Excerpt from the source : « Le aliquote stabilite dall'articolo 18 del decreto del Presidente della Repubblica 29 settembre 1973, n. 601, sono unificate allo 0,25 per cento »
  • Gazzetta Ufficiale — DPR 601/1973 — tax year 2026, verified on September 25, 2026
    Excerpt from the source : « Qualora il finanziamento stesso non si riferisca all'acquisto della prima casa di abitazione, e delle relative pertinenze, l'aliquota si applica nella misura del 2 per cento »
  • Gazzetta Ufficiale — DPR 601/1973 — tax year 2026, verified on September 25, 2026
    Excerpt from the source : « si considerano a medio e lungo termine le operazioni di finanziamento la cui durata contrattuale sia stabilita in piu' di diciotto mesi. »

Calculation assumptions

  • The substitute tax covers medium and long-term loans, meaning a contractual term of more than eighteen months (article 15 of Decree 601/1973). At 18 months or less the ordinary taxes apply instead; they are not worked out here.
  • The rate is 0.25% (standardised by Decree-Law 70/1988); it is 2% only for loans to buy, build or renovate residential property without the main-home conditions (article 18, as interpreted by Decree-Law 220/2004). The tax is charged on the total amount lent, not on the interest.
  • The result assumes the contract opts into the substitute tax, as article 17 of Decree 601/1973 provides.
  • Not covered: the ordinary taxes on short loans, the special cases in article 16 (farm credit and others), and temporary exemptions such as the under-36 relief.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.