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Buying Property as a Foreigner

Buy property abroad: Budget 10-15% extra for transfer taxes, notary fees (€600-1,500), and lawyer costs. Complete guide to mortgages, NIE requirements, and avoiding common scams.

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Quick Overview

Buying a home in Italy requires working with a notaio (notary) who is mandatory for the final deed (rogito). The process involves: making an offer (proposta d'acquisto) with deposit, signing a preliminary contract (compromesso), conducting due diligence on property permits and liens, then completing the final deed. First-time buyers (prima casa) benefit from 2% registration tax instead of 9%, provided they establish residency within 18 months. Total costs beyond purchase price: notaio 1-2.5%, registration tax 2-9%, agency fees 3-4% + VAT. Mortgage approval typically covers up to 80% LTV. Budget 10-15% extra beyond the purchase price for all transaction costs. Property is valued at cadastral value for tax purposes.

Key Facts

Mandatory professional

Notaio (notary) required for property transfer

Total extra costs

10-15% of purchase price (taxes, notaio, agency, mortgage)

Prima casa benefit

2% registration tax (vs 9% for second homes), must establish residency in 18 months

Agency fees

3-4% + VAT paid by both buyer and seller

Registration tax

2% (prima casa) or 9% (seconda casa) of cadastral value

Timeline

2-6 months from offer to completion (varies by complexity)

How It Works

Buying Property as a Foreigner in Italy

Buying property in Italy follows a structured legal process overseen by a notaio, a public official who ensures legal validity and handles registration. After finding a property (via Immobiliare.it or agencies), you make a written offer (proposta d'acquisto) typically with a €5,000-10,000 deposit. Once accepted, you sign a preliminary contract (compromesso or preliminare) with a larger deposit (caparra confirmatoria) of 10-20%, which legally binds both parties. This contract should specify all conditions, deadlines, and what happens if either party backs out - if buyer withdraws, they lose the deposit; if seller withdraws, they must return double the deposit. Before the final deed, conduct due diligence: check property permits (licenze edilizie) at the Comune, verify no building violations (abusi edilizi), check for liens and mortgages at the Conservatoria, and confirm cadastral records match reality. The notaio performs final checks. The final deed (rogito or atto di compravendita) is signed at the notaio's office, where ownership transfers and keys are handed over. The buyer chooses and pays the notaio. Prima casa (first home) benefits require: you don't own other residential property in Italy, the property is in the municipality where you work or will establish residency within 18 months, and you don't sell it within 5 years. Registration tax is charged on cadastral value (valore catastale), not market value, typically 30-50% of market value.

Before you start searching

Calculate budget including all costs

Purchase price + 10-15% for taxes and fees.

Get mortgage pre-approval (predelibera)

Bank preliminary approval.

Search and offer

Search properties

Use Immobiliare.it, Casa.it, or local agencies.

Make offer (proposta d'acquisto)

Written offer, usually with deposit (caparra).

Seller accepts offer

Proposta becomes binding when accepted.

Compromesso stage

Sign preliminary contract (compromesso/preliminare)

Detailed contract before final deed.

Complete due diligence

Verify property status, permits, liens.

Finalize mortgage (mutuo)

Complete mortgage application.

Completing purchase

Sign final deed (rogito/atto di compravendita)

Transfer of ownership at notaio.

Pay transfer taxes

Imposta di registro or IVA depending on seller.

Pay agency fee (provvigione)

Agent commission.

Moving in

Change residency (residenza)

Required for prima casa benefits.

Transfer utilities (voltura)

Electricity, gas, water.

Register with condominio if apartment

Notify building administrator.

Buying Property as a Foreigner Costs in Italy (2025)

Notaio fees (buyer pays)€1,500-5,000

Based on property value and complexity, typically 1-2.5%

Registration tax (imposta di registro)2% or 9% of cadastral value

Prima casa: 2% | Seconda casa: 9%

Mortgage tax€50 (prima casa) or 2% (seconda casa)

Tax on mortgage registration

Cadastral tax€50

Fixed fee for prima casa and seconda casa

VAT (if buying from builder)4% or 10-22% of purchase price

Prima casa from builder: 4% | Seconda casa: 10-22%

Agency fees (provvigione)3-4% + VAT each side

Both buyer and seller pay their agent

Mortgage arrangement fees€500-2,000

Bank fees, valuation, insurance (typically ~1%)

Preliminary contract registration€200-300

Optional but recommended for protection

Property survey/inspection€300-800

Geometra or architect to verify permits and condition

Property valuation€150-400

Required by bank for mortgage

Building violations check€100-300

Verify no abusi edilizi

Utility connection/transfer€50-150 per utility

Electricity, gas, water

Total
Total costs 10-15% of purchase price. Example on €200k property with prima casa benefits: notaio €2,500, registration tax €800 (2% of cadastral value ~€40k), agency €8,000-10,000, mortgage fees €1,500 = €12,800-14,800 total extra costs.

*Prima casa benefits save significantly: 2% vs 9% registration tax, €50 vs 2% mortgage tax. Property valued at cadastral value (30-50% of market) for tax purposes, not market value. Prices current as of January 2025.

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