Costs and Fees
Costs of purchasing property in Italy
Although it is common practice throughout Italy estate agents for local to charge both the buyer and seller a fee roughly equal to 3% each (6% total), because this website is simply and advertising portal, and no estate agents are involved, it means that the buyer pays nothing and the relatively small advertising costs are borne by the seller.
If a sale does not proceed the advertiser also pays nothing. The property gets advertised until sold or withdrawn.
Fees to the notary and conditions that the buyer has to comply with by law
Notaries act as totally independent third parties representing themselves and the authorities. They are not on the side of the buyer or seller. They are “middle men”.
They charge a fee and collect the charges and taxes imposed by law, rather like a solicitor in the UK.
Notary fees average about 2.5% to 3 % however a fixed fee can be negotiated. However if the property is low priced the notary will most likely charge a higher percentage as the work is still the same regardless of purchase price.
For a main/principal residence the purchaser pays an Imposta Registro (Registration Tax) of 3% of the Valore Catastale of the property (value of the property registered at the Catasto or Land Registry). The Valore Catastale is usually significantly less than the purchase price.
However if it is a new or renovated property, purchased from a builder, the Imposta Registro is fixed at €168 and IVA (VAT),is charged at 4% of the purchase price,10% for non-residents or a second home, and as much as 20% for a luxury property.
Agricultural registration tax property is higher, maybe as much as 10%.
Land registry tax is also payable, at a fixed sum of about €130 for a main residence, or 1% of the purchase price for non-residents.
The conveyance procedure
Once an offer has been accepted it is normal practice to pay a deposit of 2% to 10%. This stops the seller selling to anyone else for an agreed time. If the buyer withdraws after this the deposit is forfeited. If the seller withdraws the deposit is returned..
Then a preliminary contract is drawn up. This is also known as the “Compromesso” and is the Purchase Contract whereupon a further deposit is paid bringing the total deposit up to roughly equal to 20% of the purchase price.
The final contact or “Rogito” sees the deeds pass over and all notary fees and taxes paid in full.
In summary the procedure is not that different to that applied in the UK, except that instead of 2 solicitors there is one notary who stands in the middle (the referee) and the fee amounts and reasons are slightly different.