BUYING A PROPERTY IN ITALY: HOW MUCH DOES THAT COST?
Are you wondering about buying a house or a flat in Italy but you don’t know what are the extra costs? Below you’ll find the complete list of costs and taxes that you must add to the purchase price of the selected property.
These costs can be divided into three categories:
1. taxes,
2. notary fee,
3. real estate commission.
1. TAXES
In Italy there’s the possibility to buy a property as a “First house” or as a “Second house”. In the first case you’ll have to move your permanent residence to the address of the new property within 18 months. This is because it is a benefit offered by the State to help people buy their primary residence. Taxes then depend also on whether the seller is a natural person or a legal entity, such as a company or a VAT exempt company. More details below.
If you buy a real estate from a natural person or a VAT exempt company, the taxes would be the following:
a) “First house” purchase
– registration tax – “imposta di registro”: 2% of the cadastral value (depends on the cadastral income, different for each property), the minimum amount is 1.000€;
– cadastral tax – “imposta catastale”: 50€;
– mortgage tax – “imposta ipotecaria”: 50€.
! It is not possible to take advantage of the “First house” tax benefits if the real estate belongs to the cadastral categories A/1, A/8 or A/9, because those are luxury and particular properties.
b) “Second house” purchase
– registration tax – “imposta di registro”: 9% of the cadastral value (depends on the cadastral income, different for each property), the minimum amount is 1.000€;
– cadastral tax – “imposta catastale”: 50€;
– mortgage tax – “imposta ipotecaria”: 50€.
On the other hand, if the seller is a normal company, so a company that has to pay the Value-Added Tax – VAT to the State, the taxes on the property purchase would be the following:
a) “First house” purchase
– registration tax – “imposta di registro”: VAT in the amount of 4% of the purchase price;
– cadastral tax – “imposta catastale”: 200€;
– mortgage tax – “imposta ipotecaria”: 200€.
b) “Second house” purchase
– registration tax – “imposta di registro”: VAT in the amount of 10% of the purchase price;
– cadastral tax – “imposta catastale”: 200€;
– mortgage tax – “imposta ipotecaria”: 200€.
2. NOTARY FEE
In Italy it is mandatory to ask a notary to prepare the final sale and purchase agreement. In fact, the change of ownership will become valid when the parties will sign the deed and the notary will validate it.
The notary fee varies according to the purchase price and from notary to notary. It usually amounts to at least 1,500€. On the following link you can view an indicative scheme of notary fees in Italy.
3. REAL ESTATE COMMISSION
If the selling and buying of the property was handled by a real estate agent, it will be necessary to pay him his commission. It usually amounts to 4% of the selling price plus 22%VAT.
If you need help when buying a real estate in Italy, don’t hesitate to contact us by calling us on +39 3286066138 or by writing us an e-mail to info@boreaimmobiliare.it: we will be very happy to help you!