Buying a home in Italy is often the point where years of searching start to feel real. But before you agree a price, it’s worth knowing what that price does and doesn’t include.
The cost of buying property in Italy depends mainly on the type of seller, whether VAT applies and whether you qualify for Italy’s prima casa relief. This guide explains the main taxes, notary fees, agency commission, technical checks and currency planning points to include in your 2026 buyer budget.
Quick answer: In 2026, overseas buyers should usually budget around 5% to 16% on top of the property price when buying in Italy, before mortgage costs and currency movement. The lower end applies mainly to qualifying prima casa purchases. Second homes, VAT-rated new builds and homes needing extra technical checks can cost more.
Contents
- What is the cost of buying property in Italy in 2026?
- Why your tax route matters
- Italy property buying costs in 2026
- Worked buyer budgets
- How prima casa relief works
- Private seller or new build?
- Notary fees in Italy
- Estate agent fees in Italy
- Technical checks and survey costs
- Mortgage and currency costs
- When do you pay the costs?
- Annual costs after buying
- Common cost mistakes to avoid
- What should I do next?
- Summary
- Frequently asked questions
- Sources
What is the cost of buying property in Italy in 2026?
As a working rule, many overseas buyers should budget around 9% to 16% of the purchase price for an existing resale home in Italy if they’re buying it as a second home.
That range includes purchase taxes, notary fees, estate agent commission and basic technical checks. It doesn’t include mortgage setup costs, renovation, furniture, annual ownership taxes or a currency buffer.
If you’re still working out the wider steps, read our guide to buying property in Italy in 2026 alongside this cost breakdown. It will help you place these fees in the full buying timeline.
If you qualify for Italy’s prima casa relief, your tax bill can be much lower. For a private resale purchase, registration tax falls from 9% to 2%, although the tax is normally calculated on cadastral value rather than the agreed purchase price. The Consiglio Nazionale del Notariato sets out the main purchase-tax rules in its official guide to buying a home in Italy.
For consistency, the GBP examples below use a rounded exchange rate of €1 = £0.86. Check a live rate before transferring funds, as exchange-rate movement can change your final sterling cost. The European Central Bank euro exchange-rate reference page is a useful benchmark, although your actual transfer rate will depend on your provider and timing.
Why your tax route matters
The biggest mistake is to ask, “What percentage should I add?” before asking, “Which tax route am I in?”
In Italy, the main split is:
| Buying situation | Main tax route |
|---|---|
| Buying from a private seller | Registration tax route |
| Buying from a VAT-exempt company | Usually registration tax route |
| Buying a new build from a builder | VAT route |
| Buying with prima casa relief | Lower tax rate, if you qualify |
| Buying a second home or holiday home | Higher ordinary tax rate |
This matters because two buyers paying the same price can face very different costs.
For example, a €350,000 (£301,000) private resale purchase with prima casa relief could have a far lower tax line than a €350,000 second-home purchase. A new build may be taxed on the agreed price through VAT rather than through registration tax on cadastral value.
Before you model the costs, confirm whether you’re allowed to buy in the way you intend. Our guide Can I buy property in Italy? explains the main foreign-buyer eligibility points.
Italy property buying costs in 2026
Here are the main buyer costs to plan for.
| Cost | Typical 2026 amount | What to know |
|---|---|---|
| Registration tax, private resale with prima casa relief | 2% of cadastral value, minimum €1,000 | Usually paid through the notary |
| Registration tax, private resale without relief | 9% of cadastral value, minimum €1,000 | Common for holiday homes and second homes |
| Mortgage registry tax | €50 on private resale purchases | Also called imposta ipotecaria |
| Cadastral tax | €50 on private resale purchases | Also called imposta catastale |
| VAT on new build with prima casa relief | 4% of purchase price | Paid when VAT applies |
| VAT on ordinary new build | 10% of purchase price | Common where no relief applies |
| VAT on luxury property | 22% of purchase price | Applies to certain high-category properties |
| Fixed taxes on VAT purchase | €600 total | €200 registration, €200 mortgage registry and €200 cadastral tax |
| Notary fees | Often €1,500 to €4,000+ | Higher for complex purchases or mortgage-backed deals |
| Estate agent commission | Often 3% to 4% plus VAT | Confirm whether VAT is included |
| Technical checks | Often €700 to €1,700+ | Older or altered homes can cost more |
| Mortgage setup costs | Varies by lender | Include valuation, arrangement fees and substitute tax |
| Currency buffer | Sensible to allow 2% to 5% | Especially if your funds are in pounds or dollars |
These are working ranges for editorial budgeting, not a quote. Your notary, estate agent, bank and technical adviser should confirm exact figures before you sign the preliminary contract.
For related tax planning, read our guide to taxes in Italy and our practical article on money-saving tips for buying property in Italy.
Worked buyer budgets
The examples below show how the numbers can change. They assume the buyer uses an estate agent and arranges standard buyer-side checks.
For private resale examples, registration tax is modelled on an illustrative cadastral value equal to 50% to 80% of the purchase price. That is not an official ratio. It’s a practical modelling assumption, because cadastral value is often lower than the agreed market price and varies by property.
Example A: €200,000 resale second home
Scenario: cash buyer, private seller, no prima casa relief.
| Cost line | Estimated cost |
|---|---|
| Registration tax at 9% on modelled cadastral value | €9,000 to €14,400 |
| Mortgage registry and cadastral taxes | €100 |
| Notary fee | €2,000 to €3,500 |
| Estate agent fee at 3% to 4% plus VAT | €7,320 to €9,760 |
| Technical checks | €700 to €1,700 |
| Estimated total | €19,120 to €29,460 |
| Estimated total as % of price | 9.6% to 14.7% |
On a €200,000 (£172,000) second home, a sensible working budget is roughly €220,000 to €230,000 before any mortgage charges, currency reserve or renovation work.
If you’re comparing locations before making an offer, our guide to where to buy property in Italy in 2026 will help you weigh up regions, budgets and buyer trade-offs.
Example B: €350,000 primary residence with prima casa relief
Scenario: cash buyer, private seller, buyer qualifies for prima casa relief.
| Cost line | Estimated cost |
|---|---|
| Registration tax at 2% on modelled cadastral value | €3,500 to €5,600 |
| Mortgage registry and cadastral taxes | €100 |
| Notary fee | €2,500 to €5,000 |
| Estate agent fee at 3% to 4% plus VAT | €12,810 to €17,080 |
| Technical checks | €700 to €1,700 |
| Estimated total | €19,610 to €29,480 |
| Estimated total as % of price | 5.6% to 8.4% |
The estate agent fee becomes a bigger part of the budget here because the prima casa tax relief reduces the tax line. This is why a lower-tax purchase doesn’t mean a low-cost purchase overall.
Example C: €500,000 new build with VAT
Scenario: new build from a builder, no prima casa relief, agency used.
| Cost line | Estimated cost |
|---|---|
| VAT at 10% | €50,000 |
| Fixed registration, mortgage registry and cadastral taxes | €600 |
| Notary fee | €3,500 to €6,000 |
| Estate agent fee at 3% to 4% plus VAT | €18,300 to €24,400 |
| Technical checks | €700 to €1,700 |
| Estimated total | €73,100 to €82,700 |
| Estimated total as % of price | 14.6% to 16.5% |
If the same new-build purchase qualified for prima casa relief, the VAT line would usually fall from 10% to 4%. On a €500,000 (£430,000) property, that difference alone is €30,000.
How prima casa relief works
Prima casa is often translated as “first home”, but it doesn’t work exactly like a first-time buyer scheme in the UK.
In simple terms, the relief can reduce your tax bill when the property will become your main home in Italy and the other conditions are met. The property must generally be in the municipality where you live, where you work or where you move your residence within 18 months.
The relief is not available for certain luxury cadastral categories, including A/1, A/8 and A/9. If you already own a property bought with the same relief, the current rules also need careful checking before you rely on the reduced rate.
For overseas buyers, this is where the detail matters. A relocating buyer may qualify. A holiday-home buyer who keeps their main residence abroad usually won’t.
If you’re buying as part of a move rather than as a holiday-home purchase, our guides to residency in Italy and residency and visas in Italy are useful next reads.
Private seller or new build?
Most resale homes in Italy are bought from private sellers. In that case, registration tax is usually the main tax and, for a natural-person buyer, the prezzo-valore system may allow the tax to be calculated on cadastral value rather than the market price.
New-build purchases work differently. If you buy from a builder and VAT applies, the VAT is normally calculated on the purchase price. The fixed €200 taxes then apply for registration, mortgage registry and cadastral tax.
VAT usually applies to sales by a building or renovation company within five years of completion. It can also apply after five years if the seller opts for VAT in the deed.
Ask the agent and notary early which route applies. It affects the size of your tax bill and the way your budget should be modelled.
If you’re still choosing between resale, rural, village or renovated property, read our guide to types of properties in Italy before narrowing your shortlist.
Notary fees in Italy
The notary, or notaio, is central to the Italian purchase. They check the legal identity and capacity of the parties, title, mortgage registrations, cadastral records, planning and building compliance points and the correct tax treatment.
The notary also collects the buyer’s taxes and pays them to the Italian tax authority. So when a buyer says “notary costs”, they may be talking about two things at once: the notary’s own fee and the taxes collected through the notary. The Notariato explains the notary’s legal checks in its guide to standard purchase checks.
For a straightforward purchase, the notary’s professional fee might sit around €1,500 to €4,000. Higher-value property, complex title, multiple buyers, mortgage deeds or extra checks can increase this.
Ask for a written estimate before the preliminary contract. The estimate should separate professional fees, VAT, disbursements and taxes.
For more detail on this stage, read our guide to the notary’s role in buying property in Italy.
Estate agent fees in Italy
Estate agent commission in Italy is negotiable, but overseas buyers should commonly budget 3% to 4% of the purchase price plus 22% VAT.
In effective terms, that makes a 3% commission into 3.66% once VAT is added. A 4% commission becomes 4.88%.
For example:
| Purchase price | 3% plus VAT | 4% plus VAT |
|---|---|---|
| €200,000 | €7,320 | €9,760 |
| €350,000 | €12,810 | €17,080 |
| €500,000 | €18,300 | €24,400 |
Clarify three points before you sign anything:
- who the agent represents
- whether the buyer pays commission, the seller pays or both pay
- whether the quoted percentage includes VAT
Commission is often due when the deal is legally concluded, which may be at the preliminary contract or at completion depending on the agreement.
If you haven’t appointed an agent yet, our guide to finding the right estate agent in Italy explains what to ask before you view seriously.
Technical checks and survey costs
Italy doesn’t have a UK-style survey culture in every transaction, but technical checks are important, especially for older homes, rural property and homes that have been altered.
A geometra, architect or engineer can help check whether the property matches the cadastral plan and municipal planning records. They may also help review building permits, habitability records, energy documentation and any signs of unauthorised work.
A basic technical review may cost a few hundred euros. A more complete buyer-side review, including document access and a written compliance report, can easily reach €700 to €1,700 or more.
Older farmhouses, village houses and properties with extensions need particular care. If a past owner altered the layout without the right paperwork, the cost is not just the report. You may also need regularisation work before or after completion.
Our guide to essential property checks before buying in Italy goes deeper into cadastral, planning and technical checks.
Mortgage and currency costs
If you take an Italian mortgage, build a separate mortgage-cost line into your budget.
Common mortgage costs can include:
- bank arrangement or instruction fees
- valuation fees
- an extra notary fee for the mortgage deed
- substitute tax on the loan
- mandatory property insurance linked to the mortgage
For a qualifying prima casa mortgage of more than 18 months, the substitute tax is usually 0.25% of the loan. For a non-prima casa mortgage, it is usually 2%, according to the Notariato’s guidance on mortgage tax treatment.
That difference is significant. On a €250,000 (£215,000) loan, 0.25% is €625. At 2%, it is €5,000.
If you plan to borrow, read our guide to how to get a mortgage in Italy before you fix your purchase budget.
Currency planning also deserves its own line. If your savings are in pounds and your purchase is in euros, a small exchange-rate move can affect your final cost more than some of the smaller legal fees.
In our experience, buyers feel more confident when they agree a currency plan before signing the compromesso. Smart Currency Exchange can help you look at timing, rate alerts and forward contracts so you’re not leaving the final euro payment to chance. For a fuller explanation, read our guide to minimising currency risk when buying overseas.
When do you pay the costs?
Italian property purchases usually involve several payment stages.
| Stage | What may be paid |
|---|---|
| Offer or proposta d’acquisto | Initial deposit or caparra |
| Preliminary contract or compromesso | Larger deposit, often around 10%, plus registration taxes on deposit amounts |
| Mortgage stage, if borrowing | Valuation, bank fees and mortgage paperwork |
| Final deed or rogito | Balance of price, notary bill, purchase taxes and often agent commission |
| After completion | Utilities, insurance, condominium charges, IMU where due and TARI waste tax |
At the preliminary stage, tax may be due on the deposit or price advance. These sums are generally credited against final taxes at completion. The Notariato explains that preliminary-contract registration can involve 0.50% on the deposit and 3% on sums paid as a price advance in its guide to the preliminary contract.
For extra protection, some buyers ask for the preliminary contract to be notarised and transcribed in the land registers. This can be useful when the deposit is large, completion is months away or the seller’s financial position needs closer attention.
For the offer stage itself, see our guide to making an offer for a property in Italy.
Annual costs after buying
Transaction costs are only the start. Once you own the property, your annual budget may include:
- IMU, usually relevant for second homes
- TARI waste tax
- condominium charges if the property is in a shared building or complex
- utilities and standing charges
- home insurance
- maintenance and repairs
- property management if you won’t be in Italy full-time
Keep these separate from the purchase budget. They won’t usually stop you buying, but they can change how comfortable the property feels after the first year.
For owner-stage planning, read our guides to property management in Italy and connecting utilities in Italy as a new property owner.
Common cost mistakes to avoid
The first mistake is using a flat 10% rule without checking whether you’re in the private-sale or VAT route.
The second is assuming prima casa means “first property I’ve bought in Italy”. It’s more specific than that and is tied to residence, property category and ownership conditions.
The third is forgetting that agency fees are often plus VAT. A 4% fee plus VAT is closer to 4.9% of the purchase price.
The fourth is treating currency as an admin task at the end. If the pound moves between offer and completion, the sterling cost of your euro payment changes with it.
The fifth is skipping technical checks on a home that has been extended, divided, renovated or converted. The older and more altered the property, the more important the paperwork becomes.
Our guide to avoiding common mistakes when buying property in Italy covers the wider risks that can turn a good-looking purchase into a more expensive one.
What should I do next?
Before you make an offer, ask the agent and seller for the facts that set your budget: who the seller is, whether VAT applies, the cadastral value, the cadastral category and whether there are any known planning or cadastral issues.
Then ask a notary to model the tax position before you sign the compromesso. This is especially important if you plan to claim prima casa relief, buy a new build or pay a large deposit.
If your funds are in pounds, speak to Smart Currency Exchange before you commit to payment dates. A clear euro plan can help you protect your budget and avoid rushing a large transfer at the end of the purchase.
You may also want to read our guides to the property buying process in Italy, finding a property lawyer in Italy and planning a successful viewing trip to Italy.
Summary
The cost of buying property in Italy in 2026 depends on the tax route, not just the purchase price.
For a private resale second home, a working budget of 9% to 16% on top of the price is sensible.
For a qualifying prima casa purchase, the total can be lower because registration tax falls from 9% to 2%.
New builds can cost more if VAT applies at 10%, or 22% for luxury property.
Estate agent fees, notary fees, technical checks, mortgage fees and currency movement all need their own budget lines.
Before signing the compromesso, ask your notary for a written tax estimate and agree your euro payment plan.
Frequently asked questions
Yes. Most transactions must be carried out in euros via an Italian bank account. You’ll also need one to set up utilities, pay taxes and cover ongoing costs.
Yes – if you’re 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.
Yes. In the months between legally committing to buying and actually paying, the exchange rate is likely to change. That can drastically add to the cost of buying property in Italy at the worst possible time. With Smart Currency Exchange you can can lock in your exchange rate as soon as you commit, meaning no nasty surprises.
Sources
- Consiglio Nazionale del Notariato – Acquistare un’abitazione
- Consiglio Nazionale del Notariato – I controlli classici
- Consiglio Nazionale del Notariato – Il contratto preliminare
- Consiglio Nazionale del Notariato – Trattamento fiscale del mutuo
- European Central Bank – EUR/GBP reference exchange rates
