When planning to purchase property in Italy, it’s crucial to consider not only the property’s price but also the additional expenses involved. Below is a detailed overview of the main costs a buyer may encounter.
I. Tax on Property Purchase
Resale Market (Private Seller): The purchase tax is calculated based on the cadastral value of the property and is 9%, or 2% if the “prima casa” tax benefit applies.
New-Build Market (Developer/Company Seller): In this case, VAT (IVA) applies, typically at a rate of 10% (4% with the “prima casa” benefit) or 22% for properties classified under luxury cadastral categories—A1, A8, and A9.
For a detailed explanation of property purchase taxes, please click here.
II. Notary Fees
A notary is responsible for the legal formalization of the transaction. The cost of their services depends on the property’s price, region, and the complexity of the work required. Two identical notarial procedures can have entirely different levels of complexity. For example, purchasing a house with a long history from a private individual may be much more complex than buying a new property from a developer.
Within the notarial estimate, some expense items are fixed and not subject to the notary’s discretion—these include taxes from the previous section and state fees. The notary acts as a public official responsible for collecting taxes on behalf of the state. This means these expenses will not vary depending on which specialist you choose to consult.
For each transaction, the notary provides an individual calculation, and the final amount of notarial expenses includes all taxes & fees.
III. Real Estate Agency Commission
The commission of a real estate agency ranges from 3% to 6% of the purchase price plus VAT (tipically 22%). For properties valued up to €100,000, a fixed amount is established—equivalent to the fee calculated from a sum of €100,000.
By contacting our agency, you will pay 4% (minimum €4,000) and save on VAT, as we operate under a simplified taxation system.
The real estate agency’s commission is often offset by the negotiation assistance they provide.
III. Registration of Preliminary Purchase Agreement
After agreeing on the terms of the transaction, a preliminary agreement is signed, which must be registered with the tax authorities. Registration expenses include a fixed fee (€200), an advance tax payment (0.5% of the deposit), and stamp duties (€16 for every two pages of the agreement).
IV. Licensed Translator Services
If you do not speak Italian, the assistance of a licensed translator is required. The cost of such services in our region typically ranges from €600 to €700 and includes the written translation of documents and oral translation during the transaction.
Examples of Expense Calculations
€6,200 (tax rate without benefits - 9%)
€3,800 (4% with prima casa benefit)
Real Estate Agency Commission: €4,720
Registration of Preliminary Agreement: €266
Translator Services: €700
Total Additional Expenses:
~€11,900 without benefits
~€9,500 with prima casa benefit
Notary Expenses: €2,900
VAT: 10% without benefit: €19,500 (4% with benefit: €7,800)
Real Estate Agency Commission: €7,800
Registration of Preliminary Agreement: €364
Translator Services: €700
Total Additional Expenses:
~€31,300 without benefits
~€19,650 with prima casa benefit
Notary Expenses: €3,200 (taxes—minimum established €1,000)
Real Estate Agency Commission: €4,000
Registration of Preliminary Agreement: €232
Translator Services: €600
Total Additional Expenses: ~€8,100
Conclusion
When planning a budget for purchasing property in Italy, it’s advisable to account for additional expenses, which can amount to approximately 10−15% of the property’s listed price.
For secondary properties valued up to €100,000, additional expenses may range from €8,000 to €10,000.
Note: An exact calculation is possible after selecting a specific property, agreeing on all transaction terms, and choosing a notary.
I. Tax on Property Purchase
Resale Market (Private Seller): The purchase tax is calculated based on the cadastral value of the property and is 9%, or 2% if the “prima casa” tax benefit applies.
New-Build Market (Developer/Company Seller): In this case, VAT (IVA) applies, typically at a rate of 10% (4% with the “prima casa” benefit) or 22% for properties classified under luxury cadastral categories—A1, A8, and A9.
For a detailed explanation of property purchase taxes, please click here.
II. Notary Fees
A notary is responsible for the legal formalization of the transaction. The cost of their services depends on the property’s price, region, and the complexity of the work required. Two identical notarial procedures can have entirely different levels of complexity. For example, purchasing a house with a long history from a private individual may be much more complex than buying a new property from a developer.
Within the notarial estimate, some expense items are fixed and not subject to the notary’s discretion—these include taxes from the previous section and state fees. The notary acts as a public official responsible for collecting taxes on behalf of the state. This means these expenses will not vary depending on which specialist you choose to consult.
For each transaction, the notary provides an individual calculation, and the final amount of notarial expenses includes all taxes & fees.
III. Real Estate Agency Commission
The commission of a real estate agency ranges from 3% to 6% of the purchase price plus VAT (tipically 22%). For properties valued up to €100,000, a fixed amount is established—equivalent to the fee calculated from a sum of €100,000.
By contacting our agency, you will pay 4% (minimum €4,000) and save on VAT, as we operate under a simplified taxation system.
The real estate agency’s commission is often offset by the negotiation assistance they provide.
III. Registration of Preliminary Purchase Agreement
After agreeing on the terms of the transaction, a preliminary agreement is signed, which must be registered with the tax authorities. Registration expenses include a fixed fee (€200), an advance tax payment (0.5% of the deposit), and stamp duties (€16 for every two pages of the agreement).
IV. Licensed Translator Services
If you do not speak Italian, the assistance of a licensed translator is required. The cost of such services in our region typically ranges from €600 to €700 and includes the written translation of documents and oral translation during the transaction.
Examples of Expense Calculations
- Purchase of a Secondary Market Apartment for €118,000 (initial price €122,000):
€6,200 (tax rate without benefits - 9%)
€3,800 (4% with prima casa benefit)
Real Estate Agency Commission: €4,720
Registration of Preliminary Agreement: €266
Translator Services: €700
Total Additional Expenses:
~€11,900 without benefits
~€9,500 with prima casa benefit
- Purchase of a New Apartment for €195,000 (initial price €220,000):
Notary Expenses: €2,900
VAT: 10% without benefit: €19,500 (4% with benefit: €7,800)
Real Estate Agency Commission: €7,800
Registration of Preliminary Agreement: €364
Translator Services: €700
Total Additional Expenses:
~€31,300 without benefits
~€19,650 with prima casa benefit
- Purchase of a House for €4,000:
Notary Expenses: €3,200 (taxes—minimum established €1,000)
Real Estate Agency Commission: €4,000
Registration of Preliminary Agreement: €232
Translator Services: €600
Total Additional Expenses: ~€8,100
Conclusion
When planning a budget for purchasing property in Italy, it’s advisable to account for additional expenses, which can amount to approximately 10−15% of the property’s listed price.
For secondary properties valued up to €100,000, additional expenses may range from €8,000 to €10,000.
Note: An exact calculation is possible after selecting a specific property, agreeing on all transaction terms, and choosing a notary.