The buying process and the costs involved for the buyer

The legal and financial obligations for the buyer of property in Italy

When looking for a house in Italy it is strongly recommended that you use a Registered Estate Agent, accredited and fully licensed by the Chamber of Commerce.

Italian property is purchased in two legal stages: the preliminary contract (compromesso di vendita) and the completion deed (rogito notarile).

Step 1: Preliminary Contract (Compromesso di vendita)

A purchase through an agency may involve an official 'offer to purchase', by which the prospective purchaser is bound to the offered amount for the duration of the validity of the offer. Upon signature the purchaser commits to paying a deposit of 10% through bank transfer in the notary bank account as soon as the seller accepts. In all cases the deposit will be released only after checking that the property is free of any third party rights, otherwise the deposit will be released on the final deed of purchase. The deposit is forfeited if the purchaser does not proceed; if the vendor withdraw he/she must pay double the deposit to the buyer.

Step 2: Completion (rogito notarile)

The vendor and the purchaser must use the same notary (state registered notary representing the Italian government) to execute the deed. At this point the buyer must pay the property registration fees, plus the remaining balance of the agreed purchase price. Then both vendor and purchaser have to sign the rogito notarile, the final contract equivalent to the Deed of the property. All registered property transactions in Italy must take place in front of a notary, whose job it is to check that the sale documents are correct, to verify the identities of the parties involved, to collect the tax on the sale due to the Italian government and to ensure that the entries in the national registry of buildings and land are updated to show the new owner.

Purchasing costs

In addition to the agreed price for the property, the buyer must also pay:

• Purchase tax (IVA):
• from 1.000 euro plus 100 euro of fixed tax if the buyer purchases the property as his first residential home in Italy from a private seller, and applies for his/her residency in the local area;
• or from about 2.000 euro plus 100 euro of fixed tax if the buyer purchases the property in Italy from a private seller, and does not apply for his/her residency in the local area;
• or 4% of the final purchase price + 600 euro of fixed fees if the buyer purchases the property as his first residential home in Italy from a building company, and applies for his/her residency in the local area;
• or 10% of the final purchase price + 600 euro of fixed fees if the buyer purchases the property from a building company, and does not apply for his/her residency in the local area;
• Notary fee - payable when you sign the final contract: approximately 2.000 euro for a 100.000 euro property, approx 2.250 euro for a 200.000 property, 2.500 euro for a 300.000 euro property, and so on.

Interpreter costs at final deed of sale: from 600 euro, depending on the length of the deed.

Running costs of your property will include:

City Tax– is an annual council tax which costs nothing if the purchase takes place as a first residential home; otherwise from about 100 euro per year. It is payable twice a year in June and December or once a year, in December;

Rufuse charges – from about 100 euro per year. It is payable in four instalments or all at once;

Utilities – electricity, water, gas, telephone (if required);

Condominium expenses – if you buy a property which is part of a group of properties which share some communal areas – gardens, driveway, swimming pool, tennis court etc. then you will be required to pay condominium expenses. These vary according to the each complex.