What are the “costs to the purchaser” in Italy?
What taxes are payable for a property purchase in Italy?
The fees that are associated with purchasing Italian real estate can be sub-divided into several different categories. Here we will explain the most common purchasers’ costs for an international buyer.
In general, these costs are on average between 14% and 16% of the purchase price for a non-residential buyer.
For a resident buyer the purchasers’ costs are between 7% and 9% of the purchase price.
1- Registration tax/ transaction tax/ Imposta di registro is minimum € 1,000:
This depends on two things.
A. Are you buying as a resident or a non-resident?
B. Are you buying from a private individual or from a company?
If you are buying from private individuals, then the taxes you pay are based on the cadastral value. A nominal value which each property has, which depends on its size, location, etc – it has nothing to do with the market value.
House price agreed to €100,000.
Property belongs to private sellers.
Cadastral value of the property €32,000.
Lets say you intend on buying the house as a non-resident (you do not intend moving to Italy permanently and applying for residency):
Taxes payable are 9% on cadastral value €32,000 so €2,880 plus a few smaller fixed taxes.
If you intend moving to live in the house permanently, and applying for Italian residency, as long as you do not already own another property in Italy:
Taxes payable are 2% on cadastral value €32,000. Around € 640 plus a few smaller fixed taxes, but the minimum is € 1,000 regardless.
House price €100,000
Property is being sold by a company
Cadastral value of the property is €32,000
Lets say you intend buying the house as a non-resident (i.e. you do not intend moving to Italy permanently and applying for residency):
Taxes payable are 10% VAT on full market price €100,000 so €10,000 plus a few smaller fixed taxes.
Or, if you intend moving to live in the house permanently, applying for Italian residency, then as long as you do not already own another property in Italy:
Taxes payable are 4% VAT on €100,000 so €4,000 plus a few smaller fixed taxes.
Other potential circumstances:
Taxes would be different for a commercial purchase, e.g. if your company is buying an Italian company. Buying the shares of a company usually meets zero taxes, just a few fixed fees.
The above is a guide, and once you have found a property you are interested in buying, we can obtain a notary quote for you, with a full breakdown of the taxes and fees due.
WHAT OTHER PURCHASE COSTS ARE THERE?
2- Notary fees are a minimum of € 1,000 + 22% vat:
Are approximately 1-2% + 22% VAT.
The minimum fee of the notary is € 1,000 + 22% VAT.
In Italy both the buyer and seller pay the agency.
HouseForSaleTuscany’s fee is 3.5% of the selling price plus 22% VAT. The minimum fee is € 4.500 + 22% vat.
4- Compromise/ Compromesso registration fees:
Approximate total of € 380 plus a partial payment of taxes, which will be deducted from the total taxes due once the process has reached completion.
For signing the deed at the notary’s office a translator is required, and mandatory if you do not speak Italian well enough to understand legal deeds. Approximately the costs are €1.000 – €1.350 for translation in the English language. Depending on the language the costs could be higher.
6- Technical report for the notary:
This work is carried out by a geometra, architect or engineer and costs vary considerably, our experience tells us a minimum of €760 + 22% VAT.
A geometra checks if there are any layout issues with the property, making sure it matches the official plans, whether no works have been carried out without permission from the municipality, gathers all previous permits, checks if the house is sellable and not illegally built in any way.
Please note this report is NOT a structural survey, that is an optional additional report you may wish to request. Costs for this vary.
7- Costs of transferring money to the Trust account of the notary:
Trust accounts are operated by liberal professions, such as lawyers and notaries, who use them to handle their clients’ funds.
For example, a notary would deposit the sum of a property sale into their trust account and then send the money to the seller once the required verifications have been completed.
Notarial fees for the preparation of the buying sum are 0.5% of the selling price, costs are for the buyer. Once the deed transfer has gone through the notary will send the payable amount to the seller.
House For Sale Tuscany collaborates with real estate agency AAA-Immobiliare S.a.s. in Arezzo. They organize all contracts and check all legal aspects of the buying and selling process. They guide the clients at the notary office during the transfer of the contract.
All prices and information on this website are indicative, we hope to have informed you sufficiently yet no rights can be derived from this website.
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