Buying a home is one of the most important decisions a family makes, and it rarely happens more than a few times in a lifetime. We wrote this guide to answer the questions our international clients most often have about purchasing property in Italy. For anything not covered here, you are welcome to contact us — we reply quickly and free of charge.
The many documents, easements, rights and registry details involved in an Italian purchase can feel overwhelming. Knowing the steps in advance lets you proceed with confidence and avoid mistakes that can prove costly. Below are the essential stages and precautions.
1. Preliminary Checks
Once you have visited several properties and identified the right one, the following checks should be carried out before making an offer:
Verify that the property is free of mortgages, liens, foreclosures, pending lawsuits or other registrations against it.
Check that the cadastral records (visura catastale) are in the name of the rightful owner, and request the cadastral plan (planimetria) to confirm it matches the property’s actual layout.
Examine the title deed (atto di provenienza) to identify the legitimate owner and any rights or easements affecting the property.
2. Purchase Proposal
After the preliminary checks, negotiations begin with a written purchase proposal (proposta di acquisto). Before signing, always ask whether there are any ancillary costs in addition to the price, and if so, what they are and how much.
The proposal must be in writing and should state the property details, the offered price, the method and timing of payment, the delivery date, and the period of validity. On signing, a holding deposit is paid — usually between 2% and 5% of the offered price (minimum around €5,000) — by cheque made out to the seller, to be cashed only on signing the preliminary contract.
The validity period should be short, normally 7 to 10 days, within which acceptance must be communicated. Once the seller signs and accepts, they are bound not to sell to anyone else, giving the buyer certainty on price and terms.
3. Tax Code (Codice Fiscale)
The first thing you need is an Italian tax code (codice fiscale). It is a 16-character alphanumeric code based on your surname, first name, place and date of birth, used to identify individuals for tax purposes in Italy. It is issued free of charge by the Italian Revenue Agency (Agenzia delle Entrate), or through an Italian consulate abroad. We can assist you in obtaining it.
4. Opening an Italian Bank Account
Opening an Italian bank account is essential — not only to transfer the funds for completion (the final payment is normally made by Italian banker’s drafts) but also to set up direct debits for utilities, avoiding interruptions caused by unpaid or lost bills.
5. The Preliminary Agreement (Compromesso)
The next step is the preliminary contract of sale (contratto preliminare, or compromesso). It binds both parties to complete the sale before a notary by a set date. It does not yet transfer ownership but obliges the parties to do so, with delivery of the property, by the agreed deadline. It must already contain the essential elements of the final deed.
The final notarial deed is usually signed one to three months later, though a longer term may be agreed if works or planning compliance are needed. Note that an accepted purchase proposal already creates a legally binding relationship between the parties.
On signing the preliminary, a deposit (caparra confirmatoria) of around 10–30% of the agreed price is paid — often around 20%. Under Article 1385 of the Civil Code: if the seller withdraws, they must return the deposit plus an equal amount; if the buyer withdraws, they forfeit the deposit. In either case the non-defaulting party may instead seek enforcement of the contract or its termination plus damages. As a rule, the lower the agreed price, the higher the proportional deposit, and vice versa. In some cases the buyer pays a sum as a down payment (acconto), counted as an advance on the price rather than a deposit.
The preliminary must be registered within 20 days of signing (30 days if drawn up by a notary). Registration costs: a fixed registration tax of €200, plus stamp duty of €16 per 4 pages (and every 100 lines). Since 1 January 2025, a proportional registration tax of 0.5% applies uniformly to both the deposit (caparra) and any down payment (acconto), where not subject to VAT — previously the acconto was taxed at 3%. This amount is later deducted from the registration tax due on the final deed.
6. The Final Deed (Rogito)
The notarial deed (rogito notarile), or final contract, completes the purchase and transfers ownership from seller to buyer. It is prepared by a notary of the buyer’s choice and contains all details identifying the property (already set out in the preliminary). In some cases the parties proceed straight to the final deed without a preliminary.
Where the property has several co-owners, all of them — or a representative holding a notarised power of attorney — must sign. By law the notary verifies the absence of mortgages, liens or foreclosures at the Revenue Agency, as well as planning and cadastral compliance, and checks whether the property is subject to special rules (e.g. public-housing constraints, pre-emption rights, or protection as property of historic, artistic or archaeological interest). The notary then registers the deed in the public registers and keeps the original.
7. Costs of Buying
Total costs of buying in Italy are roughly 10–20% of the price, though this varies case by case.
Agent’s Commission
If you buy through an agency, the commission is around 3% of the price plus 22% VAT. Once the deal is concluded through the agent’s work, under Article 1755 of the Civil Code the agent is entitled to a commission from both parties.
Transfer Taxes
The three main transfer taxes are registration tax (imposta di registro), mortgage tax (imposta ipotecaria) and cadastral tax (imposta catastale). For purchases from a private seller, the taxable base is usually the cadastral value (valore catastale), which is often well below market value — though the government is updating these values. If the buyer purchases as a company, the base is the market price instead.
A) Sale by a private seller (or a business that did not build/renovate, or a developer selling more than 5 years after completion and opting out of VAT) — registration-tax regime:
Registration tax: 2% if you qualify for the “first home” (prima casa) benefit; 9% otherwise (second home). Calculated on the cadastral value for private buyers, or on the price for business buyers. Minimum €1,000.
Mortgage tax: €50 (fixed).
Cadastral tax: €50 (fixed).
(In this regime stamp duty and special registry fees are not due.)
B) Sale by a developer or renovation company within 5 years of completion (or after, with VAT opted in) — VAT regime:
VAT on the agreed price: 4% (first home), 10% (second home), 22% (luxury home).
Registration tax: €200 (fixed).
Mortgage tax: €200 (fixed).
Cadastral tax: €200 (fixed).
Stamp duty €230, mortgage fee €35, cadastral fee €55 (fixed).
These are general rules; always confirm the exact taxes before completion to avoid surprises.
Notary Fee
A fee is payable to the notary for preparing the deed (and, if the parties wish, the preliminary). It is calculated mainly on the declared value of the property.
Other Costs
These may include a lawyer for legal matters, a surveyor or architect for inspections, a translator, a removal company and utility transfers.
8. Annual Property Taxes
IMU (Imposta Municipale Propria). Since 2020, IMU is the single municipal property tax (TASI was abolished and merged into it; the old “IUC” no longer exists). IMU is not charged on your main residence unless it is a luxury home (cadastral categories A/1, A/8, A/9). For other properties the standard rate is 0.86%, which municipalities may reduce to zero or raise up to 1.06% (in some cases 1.14%). It is applied to the cadastral value revalued by 5% and multiplied by the coefficient for the cadastral category, and is paid in two instalments (16 June and 16 December). All owners, resident or not, must pay.
TARI (waste tax). It is calculated on the property’s surface area and number of occupants, and funds refuse collection.
Utilities. Electricity, water, gas/heating and telephone: a small standing charge (usually billed every two months) plus consumption. At completion, ask for the latest bills so the supplies can be transferred into your name and to confirm there are no arrears that could block the transfer.
Condominium expenses. If the property shares communal areas (garden, driveway, pool, etc.) you will pay condominium charges. Ask the administrator about the annual ordinary costs, any outstanding instalments, and any approved works not yet paid for.
9. First-Home Benefit for AIRE Citizens
Italian citizens living abroad and registered with AIRE (Registry of Italians Resident Abroad) may buy a property anywhere in Italy under the “first home” reduced-tax regime. Residence abroad is shown by the AIRE certificate or a substitute self-declaration (Circular 38/E 2005). For AIRE-registered citizens the benefit applies without the usual requirement to move residence to the municipality within 18 months (Circular 19/E 2001). The other conditions still apply — in particular, the buyer must not already own, alone or jointly, another home in Italy purchased with “first home” benefits.
This guide is provided for general information and is updated to 2026. Tax rates and rules may change and vary by case; always verify the exact figures with your notary or advisor before completing a purchase.
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