This is a quick run down of the costs involved when making a property purchase in Italy. It is advisable to contact a lawyer or accountant with good local knowledge to make sure you know about the full costs involved.
New laws have recently been introduced regarding the buying and selling of property in Italy. Buyers can now state the actual purchase price in the notary deed but will only need to pay tax on the re valued cadastral value of the property. This means that the actual notary fees required will be based on 80% of the sales price.
Capital Gains Tax laws have also undergone changes. If you decide to sell your property within five years of purchase you will have to pay cap gains tax on any profit made. This tax has changed from around 30% to only 12.5% of profits. It is quite surprising to see a tax reduction like this and it should help to encourage potential investors to look towards Italy.
You should always keep up to date with the current tax situation by checking with a local accountant as regulations can change quite frequently.
Standard Property Purchase Costs and Procedure:
In Italy both the buyer and seller of property have to pay agent's fees. The commission rate vaires between 1-6% but the average is around 3%.
For any Italian property purchase you will have to pay for a notorial deed which is prepared by a public notary. The notary costs can vary from town to town. You can expect to pay around between 1% of the purchase price.
Conveyancing costs for the property purchase can vary between 500 and 3000 euros depending on the type of property and work involved.
Basic tax cost for purchase of a property is 10% of the declared property price as stated on the notary deed for non residents (holiday homes, investment, second home etc) and 3% for residents or those applying for residency (Primary House Facility).
Registration and legal stamp cost is around 250 euro.
More info to follow but expect to add around 15-17% to the purchase price of your property, 8-10% if you are using the Primary house Facility.
