Expenses when buying a property:

When buying a property a registration tax is payable on all property purchases and the amount payable depends on whether it is your first and only home or a second home, whether it is a new home and whether you are a resident. First home resident buyers pay 3 %, whereas buyers of second homes or non-residents pay 7 % (amount when buying buildings used for habitation such as apartments, garages, basements, offices…)
Furthermore there is the land registry tax (imposta catastale) which is payable on all property purchases and, as with registration tax, the amount payable depends on whether it’s your first and only home or a second home, whether it’s a new home and whether you’re a resident. First home resident buyers of new or resale properties pay a fixed fee of €168. Buyers of second homes and non-residents pay 1 per cent
Then there is a mortgage tax (imposta ipotecaria) of €168 for resident first-home buyers and 2 per cent otherwise.
Buyers of new properties must pay VAT (IVA), which is levied at 4 per cent for first home resident buyers, at 10 per cent for second home and non-resident buyers, and at 20 per cent on luxury homes (with a rating of A1 in the property register)
Finally you pay other minor taxes and stamp duty (imposta di bollo) which is set to be around 250€.

In the example below the expenses (minus the notary fee) when buying a property for 100.000€ are:

Please note that the above example is simplified. The tax is normally calculated on the declared value of the property and not the purchase price ie. on the value stated in the building registry (rendita catastale = cadastral rent value).

The taxable value used to calculate the registration-, mortgage-, and land registry taxes is obtained as follows:

Classification of properties:

1. A-categories are buildings for habitation
2. B-categories are public buildings such as hospitals, schools etc.
3. C-categories are buildings for commercial use such as shops, stables etc.
4. D-categories are buildings for either commercial or industrial use such as hotels, theatres etc.
5. E-categories are buildings for special use such as communal buildings, stations etc.

Notary fee:
The Notary’s fees depend on the price of a property and are higher (as a percentage of the selling price) on cheaper properties. There’s also a fee for each page and each copy of a contract, plus fees for extra services such as taxes (e.g. tax stamps), expenses, legal advice and any payments made on your behalf. However, in most cases it is possible to get an estimate before buying.

Other expenses when buying a property:
If you buy a new property, you must usually pay for electricity, gas and water connections and the installation of meters. If you buy a resale property, you must usually pay for the cost of new contracts, particularly electricity.
Electricity: The cost of a new contract varies, and also depends on the amount of kwh you want in. The normal is 3kwh, but you can also get 4,5 or 6kwh.
Water: Getting a new meter costs 156,23€ that will be put up by the technician from the water company. Making a contract is free.
Town gas: A new meter costs 77€ (might vary from each commune and each gas company). Getting the gas line costs around 350€ plus eventual plus charges from the Town hall and the gas company. Making a contract when the meter already exists is free.
Expenses when rebuilding:
When modernizing your new home and the work being done is extraordinary, a geometra or an engineer will make you a building project that is to be presented at the local Town Hall and following approved by the same. Such a project can cost from 500€ and up. If the work being done is ordinary, a simple communication to the Town Hall is sufficient. However, it is always advisable to speak to the local technician in order to get correct information as to what is ordinary and what is extraordinary work.
Yearly expenses:
Besides the usual payments for water, electricity and heating, you must also pay property tax (ICI) and rubbish tax (TARSU).
The electricity bill can be debited directly on your Italian bank account, or you can pay it via their home page www.enel.it by registering with your tax code (codice fiscale).
The water bill can also be debited directly on your Italian bank account. However, each month of December you have to phone in or by other means communicate the amount of water used that year.
ICI (imposta comunale sugli immobile) is payable by all property- and land owners in Italy, also if you are not a resident. It is an annual council tax calculated on the value of the property and is payable twice a year in June and December even if it is possible to pay it once in December for non residents;  The tax rate is decided by the Town Hall and is between 0,004% and 0,007%.
TARSU (tassa rifiuti solidi urbani) is calculated according to the size of the property and it is payable in four instalments or all at once if you prefer.
If you buy a property which is part of a group of properties which share some communal areas – gardens, driveway, swimming pool, tennis court etc. then you will be required to pay condominium expenses;