Home » First Home in Italy Purchase Expenses: agency, notary, taxes …

First Home in Italy Purchase Expenses: agency, notary, taxes …

How much does it cost to buy the first property in Italy? What are the costs that will be incurred? This article will outline all of the costs needed to purchase the first house.

I don’t want to scare you, but if you’re thinking of buying your first home in Italy, you should be aware of all the expenses you’ll have to pay.

Useful resources


  1. The costs of buying a property in Italy
  2. Expenses to buy a house from a real estate agency
  3. The first method to calculate the real estate agency commission
  4. Customs and practices for calculating the mediator’s commission
  5. The judge determines the real estate agThe-judge-determines-the-real-estate-agent’s-commissionsent’s commissions
  6. Preliminary contract registration costs
  7. Compromised transcription cost
  8. First home purchase expenses: taxes
  9. Costs to buy a first home from a builder
  10. Notary fees for first home purchase
  11. Who pays the notary fees?
  12. Costs related to the first home loan
  13. Expenses for first home purchase, conclusions

The costs of buying a property in Italy

Depending on the terms of the purchase, the location, and the purchase price, the costs of purchasing the first house might vary significantly. However, if you understand the fundamental guidelines, you will be able to assert yourself without difficulty and avoid being deceived. If you don’t want to waste time reading this article, you can get a consultation by clicking here.

Expenses to buy a house from a real estate agency

In Italy, you cannot give a standard amount that is suitable for everyone and in all situations.

The national average is around 3%, but be careful, read the next few paragraphs because it is not that simple and some bad real estate agents may experience a low blow!

The first method to calculate the real estate agency commission

The first method of determining the commission due to the real estate agency is the agreement with the buyer. Usually, this is what happens, but suppose the agent has not communicated anything to you (and you have not asked for anything …), are you free not to pay the real estate agent’s commission?

Not exactly

If you want to avoid getting ripped off, find out how I can help you, and request a quote.

Customs and practices for calculating the mediator’s commission

In the absence of an agreement with the buyer, the commission must be determined based on customs and habits. Do not be confused by the name, the collection of uses and customs is a very precise thing.

Each chamber of commerce has its own collection of customs and traditions for each sector. So in Italy, there are more than 100 different ones!

The judge determines the real estate agent’s commissions

Ultimately, in the absence of an agreement, tariffs or customs and habits, the agent’s compensation is determined by the judge according to equity.

What does second equity mean? In a nutshell … what the judge considers correct!

Here is the article on the Italian civil code:

Art. 1755. (Commission).

The mediator has the right to a commission from each of the parties if the deal is concluded as a result of his intervention. The extent of the commission and the proportion in which this must be borne by each of the parties, in the absence of an agreement, professional rates or uses, are determined by the judge according to equity.

Preliminary contract registration costs

Congratulations! You’ve accepted your proposal and agreed to pay the real estate agent’s commission, and the purchase of your first house is taking shape… but the costs don’t stop there!

Almost sure, you will be required to sign a preliminary contract. Registration is required.

Yes, but how much will it set you back?

Registration in the revenue agency (which is for tax purposes only) has a cost of € 200 plus a revenue stamp of € 16 per page (in any case every 100 lines).

In addition to this, you will have to advance a small part of the registration fee (which you will pay in full at the notarial deed), equal to 0.5% of the amount paid as a deposit.

Apart from that, there isn’t much else to say. The contract is normally registered free of charge by the agency. If you bought it privately, you’ll have to wait in line and go to the nearest tax office to register it.

Compromised transcription cost

The transcription of the preliminary contract is not mandatory but recommended in homes where the sale involves some risk. If you want to understand if it might be advisable in your case, you can have your situation analyzed.

The costs related to the registration are as follows:

  • the fixed registration tax (currently € 200.00)
  • fixed transcription fees (currently € 35.00)
  • the notary’s fee compared to the value of the sale. (about 600 euros for a property of 300,000 euros)

A few more costs, but I assure you that it can save you many future problems!

First home purchase expenses: taxes

The taxes to buy a property as a first home are 2% of the revalued cadastral value, with a minimum of 1000 euros (this method of calculating taxes is called Price-value).

How is the cadastral value calculated? you must increase the cadastral income by 5% (you can find it on the cadastral survey) and then multiply by 110.

Obviously, if you had paid the advance on the registration fee when registering the preliminary, this will be deducted from the payment of the tax at the time of the deed.

If it is not the first house you buy, you may have a tax credit to claim. If you want to find out if you have a tax credit you can find out with me.

To be honest, there would also be another way of calculating the registration tax, which is simply 2% of the purchase value. This road is usually more disadvantageous than that of price-value (you pay more taxes in short) and therefore rarely used.

An interesting thing to know is that in the past (until 2006) the registration tax was always calculated on the price. Subsequently, to avoid false (lower) prices being declared, the price-value discipline was introduced.

In addition to the registration tax, you will have to pay two small taxes, mortgage and land registry, which together amount to € 100.

Costs to buy a first home from a builder

Buying a first home from a builder does not differ in costs, except in the part relating to taxes.

If the seller is a construction company that has been built or renovated in the last 5 years, VAT equal to 4% must be paid, in other cases, you will pay the registration tax as described in the last paragraph (in addition to the mortgage and cadastral tax ).

In the specific case in which you buy a house directly from the builder, without agency intermediation, you will obviously not have to pay commissions to the real estate agent.

Notary fees for first home purchase

Notary fees are likewise not set in stone; instead, they vary depending on the area, the professional, and the property’s worth.

They normally have less of an influence as the property’s value rises, and if you also need to take out a mortgage (which means earning twice for the notary), they may even offer you a discount.

The Bersani Decrees (Law 284/2006) also restrict the notary’s charge, stating that if the price-value is utilized as tax computation, the buyer is entitled to a 30% discount on the notary fee.

To give you an idea of what a notary might charge, assume an “average” amount of € 1500 for a purchase between € 100,000 and € 150,000.

Who pays the notary fees?

In general, according to the law, the costs of the notary and the stipulation are borne by the buyer.

However, different agreements can be made, nothing forbids it. The costs could be fully borne by the seller or distributed between the parties.

ATTENTION. If the buyer does not pay the taxes or fees of the notary, the latter could also claim against the buyer!

The buyer and the seller, in fact, are jointly and severally liable for the payment of taxes and notary public.

At this point you will feel like you are burning your money, but don’t give up, you are almost done!

If you want to find out which mortgage is best for your needs and immediately understand the feasibility, several online services allow you to do it for free. Personally, I recommend Mutui Supermarket. The costs related to obtaining a mortgage loan that you will have to face are essentially 4:

1) Practical mortgage investigation

The investigation is that phase in which the bank analyzes all the documentation necessary to assess the creditworthiness of the applicant (in a nutshell that you are not a bad payer and that you have sufficient income to support the commitment that the bank loan entails) and the adequacy of the property to act as a guarantee for the credit. It usually has an average cost of between € 200 and € 300

2) Property appraisal

The appraisal is carried out by a technician appointed by the bank and essentially has the purpose of:

Estimate the value of the property to ensure the capacity concerning the registration of the mortgage.

Check for any town planning and/or cadastral irregularities and liens (for example other mortgages).

The cost generally varies between € 150 and € 250.

3) First home purchase substitute tax

The substitute tax for a first home loan is 0.25% of the amount disbursed.

4) Mortgage notary deed

Yes, even for the mortgage you will have to do an act just like buying a house. Basically, you are, pass me the term, “buying money from the bank”.All this means that you will have to pay another notarial deed, the cost is similar to that of buying the house (sometimes slightly higher).

Expenses for first home purchase, conclusions

At this point, you know pretty much everything you need to know about the costs to buy your first dream home!

I know this might scare you, but don’t worry, you can write to me here about your journey. Don’t worry, we have something for all budgets, from free to no-limits assistance in the process of buying your new home.

If you liked the article, let me know with a comment and, if you want, share it! Keeping an informative blog like this takes a lot of work and a simple appreciation makes us understand that all of this is appreciated.

Jacopo Tartaglia
Real Estate Broker, founder and CEO.
info@valenteit.com or +39 379 1668 147

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