Are you planning to buy a home in Italy?

Which taxes should you pay?

What are the costs to the purchaser in Italy?

When buying a property there are several taxes to be considered.
They may vary according to the type of property, it’s condition, and it’s purpose; some of them modify the total costs and therefore they should not be ignored.

We indicate the most common situation here:

COSTS TO PURCHASER:

The total purchase costs in Italy vary between 8 and 18 percent of the purchase amount. The difference is mainly whether you buy a house to inhabit permanently, or as a second home.

1) Purchase proposal (bid-contract) “Proposta di Acquisto”:

The registration costs of the bid-contract at the land registry “Agenzia delle Entrate” average between € 650 – € 950 plus VAT. These are costs of various levies, taxes and our administration costs.

The costs of a sworn translation for these documents is for the buyers account. Pricing averages 300 to 500 euro for English.

In an exceptional case, if an agreement does not go through, it must be terminated at the agenzia delle entrate. The cancellation fee for the agreement is for the negligent party, and is approximately €500 – 1000 plus VAT.

2) The extra costs:

The additional costs to be paid through the notary before signing the title deed.
The notary will transfer these amounts to the relevant authorities.

• STAMP DUTY: The transfer is subject to registration tax on buildings amounted to 2% or 9%. The minimum is € 1,000.00.

This tax is between 2% and 9% on the cadastral value of the house. However, there is a minimal amount € 1,000 to be paid, regardless of the value of the property.

– In addition, if this property is your primary residence in Italy and you spend more than 6 months per year in the residence, the transfer tax will only be 2% of the cadastral value.

– If this is your second property and you are not a permanent resident, this transfer tax rises to 9% of the cadastral value.

– The cadastral value of many Italian properties is still much lower than the actual market value, since the calculation is actually evaluated and updated when it is time for the property to be sold, many properties have had the same owner for decades. The cadastral value is written up in the deed of sale of the property.

• VAT: If you are buying from a private seller you do not pay any VAT (4% or 10%).

• Land Registration tax: amounts to 15% (for agricultural destinations) on the registered value of the agricultural plot at the land registry. Differs per property.

• Cadastral tax “Imposta catastali”: this is a cadastral tax levied at 2% of the value on the property as determined by the local tax office, is a fixed amount of € 50.

• Registration tax “Imposta di registro”: this is a registration fixed tax of € 50 payable on a property when changing registered ownership.

• Tax costs for other attributes “Imposta per altri tributi” : Between € 50 and € 200

• Mortgage tax “Imposta ipotecario/ visure ipotecarie”: This is a government fixed tax of € 200.00 + VAT, that is charged on any mortgage or loan secured on a property in Italy,

• Notary fees for expenses “Costi notarili per spese soggette “:
This amount varies per contract and costs for expenses subject to the notary office. These costs average € 300 to € 950 plus VAT:
(Tassa Archivio/ Fixed fees and stamps/ Contributo Cassa Nazionale Notariato/ Contribution of Cassa Nazionale Notariato/ Tassa consigliare/ fee to advise/ Quota assicurazione professionale Notaio/ Professional Insurance Fee Notary),

• Trust account “Costi per il deposito conto Prezzo”: The costs to transfer the purchasing amount to the trust account of the notary. The costs are 0.5% of the amount that will be transferred to the notary’s trust account plus VAT.

• The translator: in case the buyer has insufficient knowledge of the Italian language, the presence of a sworn interpreter is mandatory by law. The costs for a sworn interpreter with witnesses vary and are dependent on the hourly tariff and number of hours worked. Approximate costs are €1.500 – €3000 for translation in the English language. Depending on the language the costs could be higher. The costs for the translator must be paid on the spot in cash, so make sure to bring the approximate amount to the notary. You will receive a cash invoice from the interpreter.

• Notarial fees “Costi per onorari notarili”: legal consultancy notarial fees are between the 1% and 2% of the purchasing amount plus VAT. The minimum is € 1.500 plus VAT.

3) Agency fee:

The agency fee is 5 % of the purchasing price.

You will receive the invoice directly from our office, our invoice will not be fulfilled through the notary.

Exceptionally, if an agreement does not go through, the negligent party will owe the full commission plus VAT to our office and will have to be paid within 7 days of the official cancellation of the agreement.

4) Lawyer costs average between €3,500 and 7,500 plus VAT.

5) What are the other costs for the buyer after buying a property in Italia?

• The costs for transferring the utilities are on average € 150 per transfer.
• The costs for organizing the internet service are on average € 350.
• For other services and costs click here for more information.
• What are the annual costs of the owner: click here for more information.

6) Do you have any other question as seen below? please contact us and we will provide you with all the necessary information.

• How to Calculate Taxes and Costs when Buying Property in Italy?
• How is the Italian Property Purchase Process?
• What Are the Minimum Costs Involved When Purchasing An Italian Home?
• What fees do buyers pay when buying a home?
• What are the buyer fees of a property in Italy?
• What are the hidden fees when buying a house in Italy?
• How much is property tax in Italy?
• What are the Closing Costs to buy a Property in Italy?
• What are the real costs of buying a house in Italy as a foreigner?
• How buying a house in Italy?
• What is the property tax Italy?
• What are the best places to buy a house in Italy?
• Can I buy land in Italy?
• How much does a house cost in Italy?

The information on this page is compiled with the greatest care; nevertheless, no rights may be derived from this information and optional attachments. We recommend that you check with the embassy in your country for the specifications and available information regarding your plans. The Dutch law is exclusively applicable to this information.