Buyers should set aside around 15% of the purchase price to cover costs.
Stamp duty/land registration tax fro non-residents (ie second home owners) varies from 10% of the declared price for urban property up to 17% for rural property. Most homes are considered urban.
Residents or those intending to make a Permanent move will pay 4% stamp duty
Vat on new properties ranges from 10 to 20% depending on whether the property is considered a ‘luxury home’. This is usually included in the price, (new law passed states that you pay on the basic of sqm)
Reduced rates of 4% VAT are available for those who build their own property
Estate agents fees are usually between 3 and 5%, notary fees average around 3% and legal costs tend to amount to around 2% of the purchase price
Local taxes (ICI) of between 0.4 and 0.7% also apply to anyone owning a home in Italy.
Buying property in Italy is straight forward but pretty time consuming
First buyer must obtain a tax identification number (codice fiscale) from the Italian authorities
There are then three main buying stages, first the buyer makes the offer which commits them to buying the property at the given price. If the seller accepts a deposit (usually 10%) is paid
Both parties then sign a legally binding proposal (compromesso di vendita). This outlines the details of the transaction, including the scheduled completion date.
Should the seller withdraw, they must pay the buyer double the value if the deposit. If the buyer pulls out they lose the deposit.
On completion, both parties sign the final contract (rogito) in the presence of a notary, who then issues the deeds and informs the land registry to transfer ownership. The remainder of the balance, plus all taxes, must then be paid at this point.
Other Fees & Running Cost
Annual Tax – 0.4% – The Imposta Comunale sugli Immobili is an annual council tax calculated on the value of the property based on the value stated in the building registry.
Annual Rubbish tax – Approximately 250€/year
Utilities – electricity, water, gas, telephone (if required) – Slightly less expensive than the UK
Community Charges – Upkeep of communal areas (swimming pools, tennis courts, garden lighting, maintenance etc). These charges are decided by the community of owners, in which you have a vote. We estimate these tend to be around 500€/year
