When looking at Italian property listings, it is easy to assume that the asking price is the purchase price. In reality, purchase tax, the notary, the agency fee and translations and documents come on top. In this article we look at what the final price consists of and how much to budget.
Purchase tax: it matters who you buy from
If the seller is a private person
Most older houses are bought from private sellers. In that case the tax is not based on the sale price but on the cadastral value, which is usually much lower than the sale price.
- Second home or holiday home: 9% of the cadastral value
- You move into the house (prima casa): 2% of the cadastral value
- The purchase tax is always at least €1,000
- In addition, mortgage and cadastral taxes of €50 each
The cadastral value is calculated from the official cadastral income (rendita catastale): rendita × 1.05 × 120 for a second home, or × 110 for a prima casa. The rendita can be found in the property documents or obtained from the agent.
If the seller is a company
If you buy a new house directly from a developer, the tax is paid on the sale price as VAT: usually 10% for a second home and 4% for a prima casa. In addition, registration, mortgage and cadastral taxes of €200 each apply.
Notary
In Italy the transaction always takes place at a notary (rogito). The notary fee depends on the transaction and is usually around €1,500 to €2,500. If you do not speak Italian, an interpreter must also be present.
Agency fee
In Italy the buyer usually also pays an agency fee. For Casa Sole listings it is 3% of the purchase price plus 22% VAT. For properties under €100,000 the fee is fixed: under €20,000 €1,500, under €50,000 €2,000 and under €100,000 €3,000 (+ VAT).
Translations and documents
A foreign buyer needs an Italian tax code (codice fiscale), often a local bank account, contract translations and, if needed, a power of attorney. Casa Sole helps with all of these.
Example: a €120,000 house
Take a €120,000 house bought from a private seller as a second home. The rendita catastale is €650, so the cadastral value is €81,900.
| House price | €120,000 |
| Purchase tax 9% of cadastral value + €100 state fees | €7,471 |
| Notary | €1,500 – €2,500 |
| Agency fee 3% + VAT | €4,392 |
| Total approx. | €133,363 – €134,363 |
If the same house were bought as a prima casa, the purchase tax would be only about €1,600. For Casa Sole listings, the document check, translations and help with residency are included in the agency fee. For other listings, they are added according to the price list.
Calculate the costs of your purchase
In the calculator you can enter the price of your house and choose the conditions. You will instantly see an approximate total including all costs.
This article provides a general overview and is not tax advice. Exact amounts depend on the specific transaction. Casa Sole can give you an exact calculation for your purchase.
