Total cost of buying property in Italy: what is fixed by law

Build the budget in four blocks

1. Taxes on the deed. These come first because they are exact once you know the seller, the home’s category and your prima casa position. The rates are the Agenzia delle Entrate’s:

2. Mortgage taxes. If you borrow, the lender can opt to pay a substitute tax in place of registration, stamp, mortgage and cadastral taxes on the loan. The rate is 0.25% of the loan for a prima casa loan and 2% otherwise (DPR 601/1973, art. 18). See substitute tax.

3. Professional fees. Neither is priced by law, as explained below.

4. Running costs. IMU on a home that is not your main residence, TARI, and condominium charges.

Worked calculations

Using official rates, for a €300,000 resale home with a €200,000 loan:

• Bought with prima casa: registration tax 2% = €6,000, plus €100; substitute tax 0.25% × €200,000 = €500. Total of the items fixed by rate: €6,600.
• Bought without it (a holiday home, say): registration tax 9% = €27,000, plus €100; substitute tax 2% × €200,000 = €4,000. Total: €31,100.

For a €300,000 builder’s sale, VAT at 4% = €12,000 plus €600 is €12,600, and at 10% = €30,000 plus €600 is €30,600. These are calculations, not quotes. They show the taxes only and are not the whole cost.

The notary: no tariff, a written estimate

Italy abolished the tariffs of regulated professions in 2012 (D.L. 1/2012, art. 9, para. 1). The fee is agreed when the engagement is given, and the professional must disclose it in writing or digitally, with an estimate that lists every cost item including expenses and charges (para. 4). So Payotte states no notary fee figure: ask for the written estimate.

According to the notarial council (Notariato), the choice of notary is free, and the purchaser is required to pay the fees unless otherwise agreed with the seller. It also says that the notary’s costs include the taxes collected for the State, which is why your payment to the notary is larger than the fee itself. Ask the estimate to separate the two.

If you use prezzo-valore, the law reduces the notary’s fees by 30% (prezzo-valore).

The agent: no legal rate

Law 39/1989, art. 6, leaves the commission to the parties’ agreement and, failing agreement, to the chamber of commerce, taking local usage into account. No percentage is fixed by statute. Agree the amount and who pays it in writing before you instruct an agent. Payotte does not state a percentage. A percentage the notarial council gives for auction sales is specific to auctions and does not carry over to an ordinary purchase.

Mortgage costs beyond the tax

The interest is the large cost. For orientation, the ECB’s series for Italy (new loans to households for house purchase) shows an annual percentage rate of charge of 3.99% for August 2026 (provisional), with 3.81% in July. This is a national average across lenders, not an offer; see current mortgage rates and how much you can borrow.

After the purchase

IMU is 0.86% by law on an “other building” such as a second home, and each municipality can set a rate between 0 and 1.06% (1.14% where allowed); a main home in A/2 to A/7 is exempt (Finance Department table). The amounts depend on your municipality’s resolution, which the Finance Department publishes. See buying a second home.

What varies locally

The purchase taxes and the substitute tax do not vary by region. Yearly taxes and the prima casa residence test vary by municipality. In the land-book areas (Trento, Bolzano, Trieste, Gorizia and part of Udine), Payotte read nothing on different registration taxes; ask the notary there.

Which professional to consult

Start with the notary for the deed estimate and the tax regime. A mortgage broker can compare loan costs, and a real estate agent agrees a commission in writing.