Buying a home in Italy isnโt just about the asking price โ it comes with a number of additional costs. Hereโs what youโll need to budget for, from taxes and legal fees to notary costs and estate agent commissions.
If youโve been house-hunting in Italy, youโll have noticed that property prices can be surprisingly affordable โ especially if youโre looking in rural areas or smaller towns. But before you make an offer, itโs crucial to understand the true cost of buying a home here. From notary fees to taxes and legal checks, there are several additional costs that can add up to 10โ15% of the propertyโs value. In this guide, weโll explain what those costs are, how much you should expect to pay, and when those payments are typically due.
Upfront costs and fees
Youโll need to pay most of the major expenses during or shortly after the sale process, so itโs essential to have these funds available up front.
Purchase price
This is the agreed price of the property, but itโs worth noting that buyers often pay based on the โcadastral valueโ (a government-assessed value), rather than the market value. This can sometimes work out in your favour when it comes to tax.
Notary fees (2โ4%)
The notary (notaio) plays a key role in the Italian buying process. They handle the legal transfer of ownership, verify the identities of the parties, ensure all legal requirements are met and register the deed with the land registry. Fees vary depending on the complexity of the transaction and the value of the property, but generally range from 2% to 4% of the propertyโs declared value.
Registration tax (2%โ9%)
This is a key tax youโll need to budget for. The amount depends on whether the property is classed as a โprimary residenceโ (your main home) or a second home:
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2% if itโs your first home in Italy and you take up residency within 18 months
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9% if itโs a second home or youโre not becoming a resident
The tax is calculated on the cadastral value, not the market price, which can result in a lower bill.
VAT (IVA) โ only for new-builds
If youโre buying from a developer and the property is less than five years old, VAT applies instead of registration tax. Expect to pay 4% for a primary residence, or 10% for a second home. For luxury properties (A1, A8 or A9 cadastral categories), VAT is 22%.
Land registry and cadastral taxes (โฌ100โโฌ200 total)
These are fixed charges related to registering the sale and updating the propertyโs cadastral records.
Legal fees (1%โ2%)
Although hiring a lawyer isnโt legally required, itโs highly recommended โ especially if youโre buying remotely or need help understanding the documents. Legal fees typically range from 1% to 2% of the purchase price, depending on the complexity of the sale.
Estate agent commission (3%โ5%)
In Italy, itโs common for both buyer and seller to pay a commission. The buyerโs side usually falls between 3% and 5% of the sale price, plus VAT at 22%. Make sure to confirm the exact amount before making an offer.
Translator or interpreter fees (if needed)
If you donโt speak Italian fluently, you may need to pay for a sworn translator to attend the final deed signing. Costs can vary, but typically start from โฌ250.
Survey or inspection (optional but wise)
A structural survey isnโt mandatory, but highly advisable, particularly for older properties. Expect to pay around โฌ300โโฌ1,500 depending on the type and size of the property.
Budgeting for property purchase
To help you plan ahead, hereโs a summary of the typical costs you can expect when buying a home in Italy. This table assumes youโre not an Italian resident and are buying a second home.
| Cost item | Typical range |
|---|---|
| Notary fees | 2%โ4% of cadastral or declared price |
| Registration tax | 9% (non-resident second home) |
| Legal fees | 1%โ2% of purchase price |
| Estate agent commission | 3%โ5% of purchase price + 22% VAT |
| Land registry + cadastral | โฌ100โโฌ200 total |
| Translator/interpreter | From โฌ250 (if needed) |
| Survey (optional) | โฌ300โโฌ1,500 |
| VAT (only for new-builds) | 10%โ22% depending on property type |
Keep in mind that these are indicative figures. Some costs, like legal or agency fees, can often be negotiated โ particularly if youโre working with a bilingual lawyer or buying without a mortgage.
When are these costs paid?
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The deposit (usually 10%) is paid upon signing the preliminary contract (compromesso)
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The remainder of the purchase price, taxes and notary fees are paid on completion (rogito)
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Legal and agency fees are often split between the preliminary and final contract dates
Should I open an Italian bank account?
Yes. Most transactions must be carried out in euros via an Italian bank account. Youโll also need one to set up utilities, pay taxes and cover ongoing costs.
Can I save money by using a currency specialist?
Yes โ if youโre transferring funds from abroad, using a currency exchange service can protect your budget from exchange rate swings and hidden bank fees. You can fix a rate in advance and avoid any nasty surprises.
Understanding these costs is key to making a confident, informed purchase. Itโs not just about getting a great property โ itโs about making sure youโre financially prepared at every stage of the process.
Sources:
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Agenzia delle Entrate โ https://www.agenziaentrate.gov.it
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Notariato โ https://www.notariato.it
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Nomisma Market Report โ https://www.nomisma.it/
