Costs of buying property in Italy
When buying a property in Italy, buyers should consider some additional costs in addition to the purchase price. The exact amounts depend on the property, the seller and the individual transaction.
Notary Fees
Property transfers in Italy must be completed before an Italian notary (notaio).
For a straightforward residential purchase, notary fees may start from approximately €2,000, but the cost varies depending on the transaction.
Additional costs may apply if special services or procedures are required, for example the use of the notary's dedicated escrow account (conto deposito), assistance in obtaining an Italian tax code (codice fiscale), or other specific formalities.
A detailed quotation should always be requested from the notary.
Purchase Taxes
When buying a residential property from a private seller, or in a transaction exempt from VAT, the main taxes are generally:
- Registration tax (imposta di registro): 9%, or 2% with applicable “prima casa” benefits, with a minimum registration tax of €1,000;
- Mortgage tax (imposta ipotecaria): €50;
- Cadastral tax (imposta catastale): €50.
When the applicable conditions are met, the price-value (prezzo-valore) system allows the registration tax to be calculated on the cadastral value rather than the purchase price.
Different rules apply to purchases subject to VAT. The exact taxes are calculated by the notary.
Agricultural Land
Agricultural land is taxed differently from residential buildings. When specific agricultural tax benefits do not apply, registration tax is generally 15% of the value attributed to the agricultural land.
The proportional registration tax is subject to a minimum amount of €1,000. When a house and land are purchased together in the same deed, the exact calculation should be confirmed by the notary.
“Prima Casa” Benefits (Establishing Residence in Italy)
Buyers who meet the legal requirements may benefit from the reduced “prima casa” taxation. Where a transfer of residence is required, it generally has to be completed within 18 months of the purchase.
International buyers should also consider that establishing residence in Italy may affect their tax position and reporting obligations in Italy and/or abroad. Professional tax advice may therefore be appropriate before transferring residence.
Registration of the Preliminary Agreement
A preliminary purchase agreement (contratto preliminare or compromesso) must generally be registered with the Italian Revenue Agency.
Registration normally involves a fixed registration tax of €200, stamp duty and, where applicable, additional tax on deposits or advance payments.
These registration costs are usually paid by the buyer, unless otherwise agreed between the parties.
Estate Agency Commission
Estate agency fees may vary depending on the property and the individual transaction. The applicable commission will always be communicated to the buyer before making an offer.
Mortgage Costs
When financing the purchase with an Italian mortgage, additional costs may include:
- property valuation;
- bank application and processing fees;
- substitute tax;
- additional notary fees for the mortgage deed;
- insurance connected with the mortgage.
The exact costs depend on the bank and mortgage product.
Translation and Language
If the buyer does not understand Italian sufficiently, additional arrangements may be required for the notarial deed.
Some Italian notaries speak English and, depending on the circumstances, may be able to conduct and explain the transaction in English, potentially avoiding the need for an external interpreter and related costs.
The requirements must always be confirmed with the individual notary in advance.
Important Information
The information above is intended as general guidance only. Tax rules may change and costs depend on the individual transaction.
The notary will calculate the applicable taxes and confirm the amounts to be paid before completion.
Bottega Casa can assist international buyers throughout the purchasing process and coordinate with the notary, surveyor, architect and other professionals involved in the transaction.