What are the total costs of buying a house in Italy?

For a typical second home from a private seller, budget 9–15% on top of the price: registration tax (9% on the cadastral value), notary fees (~1–2.5%), and agency commission (~3% + VAT). Buying new from a developer replaces the registration tax with 10% VAT.

Do foreign buyers pay more tax than Italians?

No — the tax rates are the same. The difference is that the reduced first-home (prima casa) rate requires becoming resident in the property's comune within 18 months, which most foreign second-home buyers do not, so they pay the standard rate.

How much are notary fees in Italy?

Notary fees are typically 1–2.5% of the purchase price and cover the deed, title and charge checks, and registration. The notary is a mandatory neutral public official, not your lawyer.

Foreign-buyer guide

Property Purchase Costs & Taxes in Italy

6 min read·Updated 2026-06-28

The sticker price is only part of what an Italian property costs you. Taxes, the notary, and agency fees typically add 9–15% on a second home — and the numbers shift depending on whether you buy from a private seller or a developer, and whether you qualify as a resident. Here is the full breakdown for a foreign buyer.

The main tax: registration tax vs VAT

Which transfer tax you pay depends on who you buy from. From a private individual you pay registration tax (imposta di registro); from a company or developer you pay VAT (IVA) instead.

Private seller (most resales): registration tax of 9% on the cadastral value, or 2% if you qualify for the first-home (prima casa) benefit. Mortgage and cadastral taxes are fixed at €50 each.
Developer / company (often new builds): VAT of 10% on the price (4% prima casa, 22% luxury), plus registration, mortgage and cadastral taxes fixed at €200 each.

Why the cadastral value matters (prezzo-valore)

For residential purchases by private individuals, registration tax is calculated on the property's cadastral value (valore catastale) under the prezzo-valore rule — not the actual sale price. The cadastral value is usually well below market price, so the effective tax bill is often much lower than 9% of what you actually pay. This is one of the most misunderstood — and favourable — features of the Italian system.

Notary, agency, and other fees

Beyond tax, the recurring line items are the notary and, usually, the estate agent.

Notary (notaio): roughly 1–2.5% of the price, covering the deed, title checks, and registration. Mandatory.
Estate agent: commission is typically around 3% plus 22% VAT, usually paid by both buyer and seller.
Translator/interpreter: if you do not speak Italian, the notary deed may require a sworn translator or a power of attorney.
Survey and due diligence: optional but recommended — a technician (geometra) to confirm cadastral and planning conformity.

Residents vs foreign non-residents

The big swing factor is the prima casa (first-home) benefit, which cuts registration tax to 2% (or VAT to 4%). It generally requires you to move your residence to the property's comune within 18 months — so most foreign buyers purchasing a holiday or investment home pay the standard rate.

PropIQ's built-in purchase-cost estimator models both paths for any listing — resident first-home vs foreign non-resident — so you see the realistic all-in cost before you make an offer, not after.

Frequently asked questions

What are the total costs of buying a house in Italy?: For a typical second home from a private seller, budget 9–15% on top of the price: registration tax (9% on the cadastral value), notary fees (~1–2.5%), and agency commission (~3% + VAT). Buying new from a developer replaces the registration tax with 10% VAT.
Is registration tax charged on the price or the cadastral value?: For residential purchases by individuals, registration tax is charged on the cadastral value (valore catastale) under the prezzo-valore rule, which is usually well below the market price — so the effective rate is lower than 9% of what you pay.
Do foreign buyers pay more tax than Italians?: No — the tax rates are the same. The difference is that the reduced first-home (prima casa) rate requires becoming resident in the property's comune within 18 months, which most foreign second-home buyers do not, so they pay the standard rate.
How much are notary fees in Italy?: Notary fees are typically 1–2.5% of the purchase price and cover the deed, title and charge checks, and registration. The notary is a mandatory neutral public official, not your lawyer.

This guide is informational and not legal, tax, or financial advice. Italian property law and taxation are complex and change over time — always confirm the specifics with a licensed notary (notaio), tax adviser (commercialista), and your own bank before committing to a purchase.

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