Additional costs when buying property in Italy:

There’s a moment in the buying process that very few people are prepared for: shortly before the appointment, the solicitor presents a breakdown of costs — and the figure on the page is significantly higher than expected. Not because anyone has done anything wrong. Not because hidden fees have been added. But because no one has fully explained beforehand what costs are incurred when buying property in Italy, apart from the purchase price.

This article does exactly that — listing all cost items, with specific figures, in the order in which they arise. Anyone who reads this article before the compromesso will face no surprises at the notary appointment.

Registration tax (Imposta di Registro): The largest item

In almost all purchase scenarios, registration tax is the largest single additional cost — and at the same time the one where money is most often wasted because a crucial application was forgotten.

Primary residence (Prima Casa): 2% of the cadastral value

The amount of tax payable depends primarily on two factors: the intended use of the property and the basis for calculation. Anyone buying a property as a primary residence (*Prima Casa*) pays just 2% — calculated, however, not on the purchase price but on the **cadastral value** of the property. In Italy, this administrative tax value is almost always significantly lower than the market value, which often makes the difference in absolute terms dramatic.

Three conditions apply to the primary residence scheme: 

• The property must not fall into the luxury category (A/1, A/8, A/9)
• You must already live or work in the municipality — or register your residence there within 18 months of purchase
• And you must not own any other Prima Casa property anywhere in Italy

Second home: 9% — and why the cadastral value is crucial

Anyone purchasing a holiday home or a second home, on the other hand, pays 9% of the cadastral value. This rate may sound high at first, but it is put into perspective when you consider the actual tax base. 

A calculation example illustrates this: 

With a purchase price of €300,000 and a cadastral value of €85,000, the land transfer tax amounts to €7,650 — compared to €27,000 if the purchase price were used as the basis. A difference of almost €20,000, which arises — or does not arise — from a single application at the notary’s appointment.

This claim, known as the price-value rule, can be made in the case of existing properties sold between private individuals, provided the full purchase price is stated in the contract. Anyone who forgets to make this claim, or fails to do so, is in many cases giving away more money than was saved through the rest of the negotiation.

New build from a developer: VAT instead of land transfer tax

An exception applies when purchasing a new-build directly from a developer: in this case, VAT (IVA) applies instead of land transfer tax — 4% for a primary residence, 10% for a second home, and 22% for luxury properties, in each case calculated on the purchase price.

Notary fees: What the notary charges and for what

When buying property in Italy, a notary is not an option but a legal requirement. They authenticate the purchase contract (*Rogito*), verify the legal soundness of the transaction — that is to say: existing encumbrances, ownership structures, mortgages —, calculate and pay the land transfer tax directly to the tax office, and finally arrange for registration in the land registry (*Conservatoria dei Registri Immobiliari*). 

What affects the costs

These services typically cost between €1,500 and €4,000, depending on the purchase price, the complexity of the property and the region. Factors that drive up the costs include multiple cadastral units within a single property, encumbrances, renovation requirements or a mortgage to be registered. If the purchase is financed by a bank loan, the mortgage registration is added as a separate item.

In practice, buyers in Italy are responsible for all notary fees — whilst this is negotiable, it is the established norm. Anyone looking to save money on larger purchase prices should obtain two or three quotes in advance. Notaries operate within a statutory fee framework but do have some leeway.

Estate agent’s commission: Understanding the dual agency model

Anyone coming from Germany will encounter a structural peculiarity of the property market in Italy that may seem confusing at first: the estate agent (*mediatore*) usually represents **both** parties simultaneously — buyer and seller — and receives a commission from both. This is legally recognised and standard practice in Italy, but it does not alter the fact that buyers should be aware of this conflict of interest and factor it’s in.

When the commission is due — and why these matters

The buyer’s commission is usually between 2% and 4% of the purchase price, plus 22% VAT. For a purchase price of €300,000 and a rate of 3%, this amounts to €9,000 plus €1,980 VAT, making a total of around €10,980. The crucial point that many buyers overlook is that the estate agent’s entitlement to commission arises not at the notary’s appointment, but as soon as the compromesso is signed. Even if the sale subsequently falls through for reasons attributable to the buyer, the commission may still be due. The amount and due date are therefore among the points that must be clarified in writing before anything is signed.

Legal fees: Not mandatory, but in many cases the wisest investment

Hiring legal counsel is not a legal requirement when buying property in Italy — the notary is the only mandatory party. Nevertheless, in certain property scenarios, a solicitor is not merely a precaution but simply common sense.

It is particularly recommended for renovation projects with an unclear building permit history, in cases of complex ownership structures such as communities of heirs or multiple previous owners, and whenever there is a suspicion of unauthorised alterations (*Abuso Edilizio*) — a problem that is more common than one might expect in older houses in rural areas of Italy. Anyone unfamiliar with the Italian legal system is, in such cases, buying without a safety net or a safety margin.

What legal support costs

The costs typically range between €500 and €2,500, depending on the workload and the law firm. Anyone hiring a German-speaking lawyer specialising in Italian matters usually pays a little more — but in return benefits from communication in their native language, which is an underestimated asset when dealing with a contract in a foreign language.

Translation costs at the notary appointment

Anyone who does not speak Italian will need a certified interpreter at the notary appointment — the notary is obliged to ensure that the buyer understands the contract and understands what they are signing. Often, the lawyer or estate agent takes on this role if they are suitably qualified. An officially sworn translator incurs additional costs: allow for €300 to €800 for a notary appointment.

Other costs that are incurred in full

In addition to the major items, there are several smaller expenses that rarely appear in the budget but do play a significant role in the overall costs.

Cadastral extract and energy performance certificate

The **cadastral extract** (*Visura Catastale*) should be the first document requested before the purchase — it shows ownership details, official land areas and the *Rendita Catastale*, i.e. the tax value used to calculate the land transfer tax. The costs are low and are usually covered by the estate agent or solicitor. The **energy performance certificate** (*APE*) has been a legal requirement since 2013 and must be provided by the seller. It is therefore relevant to buyers because the energy rating has a significant impact on the property’s future running costs.

Mortgage financing and bank charges

Anyone taking out a mortgage in Italy will face additional costs on top of the other items: the mortgage registration tax amounts to 0.25% of the loan amount for a primary residence and 2% for a second home. On top of this come bank charges for granting the mortgage and, where applicable, costs for a valuation report (*Perizia*). As a rough rule of thumb, you should budget for 1.5 to 3% of the loan amount in additional costs. An **Italian bank account** is practically essential for settling the purchase price and all ongoing payments, and costs between €50 and €200 per year, depending on the account type.

What many buyers only discover too late

There are certain costs that are regularly omitted from standard guides on buying property in Italy — yet in practice they crop up time and again, leading to unexpected additional charges.

Cadastral rectification: When the entry is no longer accurate

With older properties, it is common for the actual condition to differ from the cadastral entry — whether due to previous alterations, extensions or changes to the floor plan that were never officially reported. This **cadastral rectification** (*Accatastamento*) is carried out by a chartered surveyor (*Geometra*) and costs between €800 and €2,500, depending on the scope of work.

Technical survey: Buying blind

Anyone who fails to commission a **technical survey** (*Perizia Tecnica*) from an independent architect or engineer before buying is purchasing a property in need of renovation in the dark — without reliable figures on the building’s structure, hidden defects or realistic renovation costs. This survey costs between €500 and €1,500 but can help you avoid bad investments running into five figures.

Apostille and certified translations

Anyone requiring documents from Germany for the purchase process — such as a birth certificate or marriage certificate — must have these apostilled and translated. Expect to pay between €150 and €400 per document.

Total cost calculation: A specific example

Purchase scenario: Country house in Tuscany, purchase price €250,000, as a second home, cadastral value €70,000

This ratio increases with higher purchase prices or mortgage financing. As a rule of thumb, allow for 10–15% of the purchase price as a buffer — this covers all scenarios.

Ongoing costs after purchase

The ancillary costs of the purchase are one-off. What remains afterwards are the annual running costs of the property.

IMU: Property tax for second homes

The IMU (Imposta Municipale Unica) is the Italian property tax levied annually on second homes — for primary residences, it applies only to luxury properties. The calculation is based on the cadastral value multiplied by a municipality-specific tax rate; payment is made in two instalments on 16 June and 16 December.

TARI, home insurance and other minor ongoing costs

On top of this comes the TARI, the local waste collection charge, which is set annually by the local council and typically ranges from €150 to €400. Home insurance is not a legal requirement for private owners without a mortgage, but it is strongly recommended — the annual premium for a country house range between €300 and €800, depending on the property and the level of cover.

Additional costs for gifts or inheritance

Anyone who does not buy a property in Italy but inherits it or receives it as a gift is liable for different charges. In the case of transfers to children or spouses, an allowance of €1 million per beneficiary applies — any amount above this is subject to 4% inheritance tax. For siblings, the allowance is €100,000 and the rate is 6%; for more distant beneficiaries, the rate is 6 to 8% depending on the degree of kinship. Gifts are subject to the same rates and allowances.

Intergenerational planning: Why early advice is worthwhile

Early advice is particularly valuable for intergenerational planning — especially as the EU Succession Regulation 650/2012 allows German owners to opt for the application of German inheritance law in their will, which can significantly simplify the overall planning process.

Frequently asked questions about additional costs 

Who pays the estate agent’s commission in Italy? 

As a rule, both parties pay. The dual agency model is standard practice in Italy: the estate agent represents both the buyer and the seller at the same time and receives a commission from both. The exact split is negotiable — but should be set out in writing before the agency agreement is signed.

Are notary fees negotiable? 

To a limited extent. Notaries charge within a statutory fee framework but have some leeway. For larger purchase prices, it is worth comparing quotes from two or three notaries.

When are the individual costs incurred? 

Land transfer tax and notary fees are due at the notary appointment (*Rogito*). The estate agent’s commission is payable upon signing the Compromesso. Solicitors’ fees and translation costs are invoiced on an ongoing basis as services are provided.

Are there special regulations for EU nationals?

No. As EU citizens, Germans enjoy the same rights and tax obligations as Italian citizens when buying property in Italy — including all the regulations described here.

Checklist: Before signing the compromesso

• Is the cadastral value known — has the land transfer tax been calculated based on the cadastral value?
• Has the ‘Prima Casa’ or second home status been determined and discussed with the solicitor?
• Have you enquired about the solicitor’s fees in advance — and obtained at least two quotes?
• Estate agent’s commission — amount, due date and payment terms confirmed in writing?
• Solicitor appointed — strongly recommended, particularly for properties requiring renovation?
• Interpreter arranged for the notary appointment?
• Technical survey commissioned if renovation work is required?
• Total budget calculated with at least a 10–15% buffer on the purchase price?

Anyone who clarifies these points before the compromesso can go to the notary appointment feeling relaxed — with no surprises on the bill.

Conclusion

The additional costs involved in buying property in Italy are no mystery – they are a predictable factor once you know what they cover. If you allow for a buffer of 10 to 15 per cent of the purchase price, you’ll be covered for almost any realistic scenario. Anyone buying without this buffer will find themselves, shortly before the notary appointment, in a situation that has happened to every buyer in Italy at some point: the unpleasant realisation that the additional costs are not just ‘a bit of a notary fee’, but a four-figure sum to be paid in a single day.

Three factors are particularly important: Firstly, explicitly request the price-value rule at the notary appointment – it can reduce the land transfer tax to a third or a quarter. Secondly, compare notary fees between several notaries, especially for higher purchase prices. Thirdly, agree the estate agent’s commission in writing before the compromesso – the amount, when it is due, and under what conditions it may be waived.

Anyone who knows and takes these three factors into account will enter the buying process with a realistic cost estimate. And anyone who understands the budget in advance can focus on what really matters: finding the right house.

Note: All information is based on the situation as of May 2026. Tax rates and legal regulations are subject to change. We recommend consulting a tax adviser (*Dottore Commercialista*) and notary licensed in Italy before making a purchase.