Additional Costs of Property Purchase

When purchasing property in Italy, several additional costs arise beyond the actual purchase price. These expenses vary based on multiple factors, including the property’s value, location, type of asset, and local regulations.

Real Estate Agency Fee (Provvigione)

The right to a brokerage fee is established by law as compensation for the mediation between the parties. While there is no legal obligation to use a real estate agent in Italy, the following applies when an intermediary is involved:

Rates: Typically 3% + VAT (IVA), but fees can vary from 2% to 5%. The rate should always be clarified in writing before submitting a formal offer.
Due Date: The commission is legally due once the transaction is considered binding (affare concluso). This normally occurs upon the signing of the Preliminary Contract (Compromesso).
Our Assistance: We review the agent's mandate to ensure that the payment terms and rates are aligned with your interests.

Read our guide: When is the agent actually entitled to payment?

Registration Tax (Imposta di Registro)

This is the most significant tax in a property transfer and is paid to the Italian state to provide the document with legal validity.

Calculation: The tax is calculated as a percentage of the property’s cadastral value (valore catastale), which is often lower than the actual market price.
Rates: The rate varies significantly. When purchasing a "primary residence" (prima casa), it is substantially lower than for a secondary or holiday home.
Purpose: The tax ensures that the change of ownership is correctly documented and recognized by the authorities, preventing irregular transactions.

The Italian Notary (Notaio)

The Notary is a public official who guarantees legal security in the transaction. Documents issued by a notary carry specific evidentiary value within the Italian legal system.

Duties: Verifying ownership, ensuring the property is free of mortgages and encumbrances, and handling the registration in the land registries.
Selection: It is normally the buyer who selects and pays the notary. We recommend choosing a modern firm that handles digital communication efficiently to avoid unnecessary delays.
Cost: The fee is not fixed, but is influenced by the property’s price and complexity (e.g., if a mortgage needs to be registered). Typically, this ranges between €2,000 and €3,500.