How much does it really cost to buy a house in Italy? On top of the price, a foreign buyer should budget roughly 10–15% for taxes, notary, estate agent and professional checks. The exact figure depends above all on who sells (a private owner or a builder) and on whether the house will be your main home. This guide explains each cost with a worked example.
It is written by the English-speaking lawyers of Studio Legale Stoppa, in Sansepolcro (Arezzo, Tuscany). The rules are the same for Italians and foreigners: nationality does not change the taxes. For the whole buying process see our guide on buying property in Tuscany as a foreigner; if you are a US citizen, see also buying a house in Italy as an American.
In short
- From a private seller: 9% registration tax on the cadastral value (2% for a main home), + €50 + €50.
- From a builder: VAT on the price (4%, 10% or 22%) + €600 of fixed taxes.
- Agent: usually paid by both buyer and seller, plus 22% VAT.
- Every year on a holiday home: IMU property tax and TARI waste tax.
- Selling again within 5 years can trigger tax on the gain.
1. How much does it cost to buy a house in Italy?
The costs fall into four groups: purchase taxes, paid through the notary on the day of the deed; the notary’s fee; the estate agent’s commission, if there is an agent; and the professional checks (lawyer, surveyor, and an interpreter or a power of attorney if needed). For a holiday home bought from a private seller, the total is often around 10–15% of the price. It can be lower when the cadastral value is low, and higher when you buy from a builder.
2. Purchase taxes: private seller or builder
The taxes depend on who sells and on how you will use the house, not on your nationality.
| Seller and use | Registration tax | Mortgage and cadastral taxes |
|---|---|---|
| Private seller – second or holiday home | 9% of the cadastral value (minimum €1,000) | €50 + €50 |
| Private seller – main home (“prima casa”) | 2% of the cadastral value (minimum €1,000) | €50 + €50 |
| Builder – main home | €200 + VAT 4% on the price | €200 + €200 |
| Builder – other homes | €200 + VAT 10% on the price | €200 + €200 |
| Builder – luxury home (A/1, A/8, A/9) | €200 + VAT 22% on the price | €200 + €200 |
“Builder” means a construction or renovation company selling within five years of completing the works (or later, if it opts for VAT). Most farmhouses and villas sold by private owners fall in the first two rows.
Why you pay tax on the cadastral value, not on the price
When a private individual buys a home from a private seller, the registration tax is calculated on the cadastral value (the “prezzo-valore” rule), even if the deed shows the real price, as it must. The cadastral value is the cadastral income (rendita catastale) revalued by 5% and multiplied by 110 for a main home or 120 for other homes. It is often far below the market price, especially for old country houses. The rule applies to the house and its outbuildings; land sold with it, such as olive groves or vineyards, follows different rules and must be checked case by case.
The 2% “first home” rate for foreigners
A foreign buyer can have the 2% rate (or 4% VAT) only if the house is not in a luxury category, and if they move their registered residence to the town where the house is within 18 months of the deed (or already work there). You must not own another home in the same town, nor another home in Italy bought with the same benefit (unless you sell it within the time limits set by law). For most buyers of a holiday home it does not apply. If you declare it and then do not move, the tax is recovered with interest and a penalty.
3. Notary, estate agent and professional fees
The notary
In Italy the deed must be signed before a notary, who checks the land registry, collects the purchase taxes and registers the transfer. The notary is chosen and normally paid by the buyer. The fee depends on the price and on the work involved (mortgage, power of attorney, translation); ask the notary for a written estimate early. With the “prezzo-valore” rule the notary’s fee is reduced by law.
The estate agent
In Italy the agent’s commission is usually paid by both the buyer and the seller. There is no fixed legal rate: it is often between 2% and 4% of the price for each side, plus 22% VAT, but it is agreed in writing. Read the agency form carefully: the commission is normally due as soon as your purchase offer is accepted, not at the deed.
Lawyer, surveyor and interpreter
The notary is neutral and does not negotiate for you. Your own English-speaking lawyer in Italy reviews the offer and the preliminary contract, checks the title and coordinates the checks; a surveyor (geometra) checks that the building matches the plans and permits. If you do not speak Italian, the law requires an interpreter at the deed, or you can sign through a power of attorney. These fees are agreed in writing before the work begins.
4. A worked example
A holiday farmhouse in Tuscany bought from a private seller for €400,000, with a cadastral income of €1,500 (illustrative figures).
| Item | How it is calculated | Amount |
|---|---|---|
| Cadastral value | €1,500 × 1.05 × 120 | €189,000 |
| Registration tax | 9% of €189,000 | €17,010 |
| Mortgage and cadastral taxes | fixed | €100 |
| Estate agent (if 3%) | €12,000 + 22% VAT | €14,640 |
| Notary, lawyer, surveyor, interpreter | written estimates | to be added |
If the same house became your main home, with the 2% rate the registration tax would be about €3,465 (€1,500 × 1.05 × 110 × 2%). If you bought a new home from a builder for €400,000, the VAT at 10% would be €40,000, plus €600 of fixed taxes. The real cadastral income of a property is shown in the cadastral survey (visura catastale), which we check before you make an offer.
5. Yearly costs of owning a house in Italy
- IMU (property tax): not due on your main home, except luxury categories; due every year on a second or holiday home, in June and December. The taxable value is the cadastral income × 1.05 × 160; the rate is set by each town, usually between 0.86% and 1.06%. In the example above: about €2,170–2,670 a year.
- TARI (waste tax), set by the town according to the size of the house.
- Utilities, insurance, condominium charges for apartments, and maintenance of land, pools and septic systems in the countryside.
- If you rent the house out to tourists: registration with the town and the national identification code (CIN), and Italian tax on the rental income.
How the Italian taxes interact with the taxes of your home country is a question for your tax adviser there: we work alongside them, but we do not advise on foreign tax law.
6. Hidden costs and how to avoid them
- Irregular building works (extensions, changed windows, outbuildings without permits): they must be regularised before the deed, at a cost, or the price must be renegotiated.
- Unpaid condominium charges: the buyer can be liable for the current and previous year.
- The agent’s commission becoming due at the accepted offer, even if you later withdraw.
- Losing the deposit if you withdraw from a preliminary contract without a contractual way out.
- Rural land: neighbouring farmers may have a right of pre-emption, and some land carries specific restrictions.
- Selling again within five years: the gain can be taxed in Italy (at 26% if you choose to pay through the notary), unless the house was your main home for most of the time.
Most of these are found by a lawyer’s and a surveyor’s checks before you sign the offer. The steps are explained in our guide for foreigners buying in Tuscany.
7. Frequently asked questions
How much does it cost to buy a house in Italy on top of the price?
For a holiday home bought from a private seller, budget roughly 10–15% of the price for taxes, notary, estate agent, surveyor and lawyer. Taxes are often lower than they look because the 9% registration tax is calculated on the cadastral value, not on the price. Buying from a builder costs more, because VAT of 10% (22% for luxury homes) is charged on the full price.
What taxes does a foreigner pay when buying property in Italy?
The same taxes as an Italian. From a private seller: 9% registration tax on the cadastral value (2% if it becomes your main home and you move your residence there within 18 months), plus €50 mortgage tax and €50 cadastral tax, with a minimum of €1,000 for the registration tax. From a builder: VAT of 4%, 10% or 22% on the price, plus three fixed taxes of €200 each.
Who pays the estate agent fees in Italy?
Usually both the buyer and the seller pay the agent a commission. There is no fixed legal rate: it is agreed in writing, often between 2% and 4% of the price each, plus 22% VAT. Check the amount and when it becomes due before you sign the purchase offer, because the commission is normally owed once the offer is accepted.
Do I pay IMU property tax on a holiday home in Italy?
Yes. IMU is not due on your main home (except luxury categories A/1, A/8 and A/9), but it is due every year on a second or holiday home, in two instalments (June and December). Each town sets the rate, usually between 0.86% and 1.06% of a taxable value based on the cadastral income. The waste tax (TARI) is also due.
Are there hidden costs when buying property in Italy?
The most common surprises are irregular building works that must be regularised before the deed, unpaid condominium charges, the agent’s commission becoming due at the accepted offer, the interpreter required at the notary if you do not speak Italian, and the cost of a power of attorney if you sign from abroad. A lawyer’s and a surveyor’s checks before the offer avoid most of them.
8. How we can assist you
We assist foreign buyers in English, remotely by email and video call and in person in Sansepolcro, between Arezzo, Florence and Perugia. Before you make an offer we check the cadastral data, the title and the building permits, and we estimate the taxes for your situation; then we review the preliminary contract, follow the deed with the notary and prepare the power of attorney if you sign from abroad. Our fees are agreed in writing before work begins. We call you back within one working day, at a time that suits your time zone (phone, WhatsApp or video call).
Tell us about the property you want to buy
Fill in the form below (fields marked * are required), or contact us directly: info@studiolegalestoppa.it · +39 389 960 7564 · WhatsApp. See also our page for English-speaking clients in Italy.
Lawyer (Avvocato) in Sansepolcro and Arezzo, Tuscany · property purchases, real estate and civil law · assists English-speaking clients
This guide contains general information on Italian rules updated to October 2026 (sources: Agenzia delle Entrate, “L’acquisto della casa” guide; Testo unico dell’imposta di registro; IMU rules, Law 160/2019). Figures are examples and do not replace advice on a specific case.