How to buy a Home in Italy:
a comprehensive Guide
Investing in Italian real estate can be an exciting journey. This guide will walk you through the essential steps, from obtaining your codice fiscale to finalizing the purchase, ensuring a smooth and informed buying process.
Obtaining Your Codice Fiscale
- Essential Identification
Thecodice fiscale is a crucial 16-character tax identification code, similar to a Social Security number, that's mandatory for purchasing property, opening bank accounts, and signing contracts in Italy
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- Application Process
​Obtain your codice fiscale for free by visiting any Agenzia delle Entrate office in Italy with your passport, or apply at Italian consulates abroad before your trip. Processing typically takes just one business day, and the code is valid for life.
Opening an Italian Bank Account
- Local Account
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A local Italian bank account is typically required for property transactions. You'll need your codice fiscale, passport, proof of address, and employment documentation. Most major Italian banks offer accounts specifically designed for non-residents, though processing times may take 2-3 weeks.
- Notary Alternative
For international buyers, using the notary's escrow account can streamline the process. This secure option eliminates the need for a local bank account, ensures proper fund handling, and provides additional legal protection during the transaction. The notary will provide specific wire transfer instructions.
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The Formal Purchase Proposal
1 Written Offer
Your purchase journey begins with a formal written proposal (proposta di acquisto irrevocabile), a legally binding document that must specify exact property details, precise purchase price, payment terms, and any conditions such as mortgage approval or property inspections.
2 Deposit
The proposal must be accompanied by a good faith deposit (caparra confirmatoria) of approximately 10% of the purchase price. This sum is typically held in a secure escrow account managed by a notary or real estate agency until the preliminary contract (compromesso) is signed.
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3 Binding Agreement
Once the seller accepts and countersigns the proposal within its validity period (usually 15 days), it becomes a fully binding contract under Italian law. Should you as the buyer withdraw, you forfeit the entire deposit; if the seller backs out, they must compensate you with double the deposit amount per Article 1385 of the Italian Civil Code.
Pre-Offer Property Inspection
Title Check
Carefully examine property records at the Land Registry (Catasto) to confirm legal ownership, boundary lines, and any existing encumbrances or restrictions.
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Loan Verification
Request mortgage status documentation from the Land Registry to identify any outstanding loans, liens, or financial obligations attached to the property.
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Professional Inspection
Hire a licensed Italian building surveyor (geometra) to assess structural integrity, electrical systems, plumbing, and potential hidden issues before committing to purchase.
Preliminary Agreement of Purchase & Sale
1 Detailed Contract
The preliminare di compravendita is a comprehensive legal document that specifies purchase price, payment terms, closing date, and any special conditions of the property sale.
2 Deposit Payment
Upon signing, buyers provide a substantial deposit (caparra confirmatoria), typically 20-30% of the purchase price, which is legally binding and secures the transaction.
3Legal Protection
If the buyers withdraws, they forfeit the deposit; if the seller backs out, they must pay double the deposit amount - ensuring both parties are committed to completing the sale.
Types of Preliminary Agreements
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Public Document
Officially drawn up and authenticated by a notary, providing maximum legal protection. This option offers immediate enforceability in court and serves as stronger proof of the agreement. While more expensive, it's recommended for high-value properties or complex transactions.
Private Contract
Agreement written and signed directly between parties, offering a quicker and more cost-effective solution. While it can be authenticated by a notary later if needed, it requires additional steps for legal enforcement. Best suited for straightforward transactions where parties have established trust.
The Deed of Purchase (Rogito)
1 Final Signing Ceremony
The deed (atto notarile) is signed at the notary's office after all conditions from the preliminary contract are met and final payment is prepared.
2 Legal Transfer of Ownership
Through the notary's reading and signing of the rogito, property ownership is legally transferred from seller to buyer, making the purchase official under Italian law.
3 Public Registration
The notary registers the deed with the Land Registry (Agenzia del Territorio) and Tax Office, ensuring the transfer is publicly recorded and legally binding.
The Role of the Notary
Neutral Party
The notaio (Italian notary) serves as an independent legal authority who verifies identities, ensures compliance with Italian law, and protects both parties' interests throughout the transaction.
Document Preparation
Carefully drafts and authenticates the deed of sale (rogito), ensures all legal requirements are met, and handles registration with the Land Registry (Catasto).
Transaction Witness
Officially certifies the property transfer, oversees the final payment exchange, and ensures all documentation is properly executed and recorded in public records.
Purchase Costs Overview*
From 10%​
Minimum Purchase Costs
Entry-level fees including registration tax, notary fees, and agent commission for resale properties
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To 20%
Maximum Purchase Costs
Higher-end fees including VAT for new builds, notary fees, and agent commission for luxury properties
*Estimated Costs
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Real Estate Agent's Commission
Fee Range
Commission typically ranges from 3% to 6% of the purchase price.
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Additional Tax
22% VAT (I.V.A.) is added to the agent's fee.
Property Taxes - Primary Residences
Stamp Duty (Imposta di Registro) *
Primary residences enjoy a reduced 2% rate. Secondary homes face a 9% rate. All transactions require a minimum €1,000 payment, regardless of property value.
Land Registry Tax (Imposta Ipotecaria)
A straightforward €50 flat fee applies to residential purchases. This essential tax funds the official recording of your property transfer in Italy's national land registry.
Cadastral Tax (Imposta Catastale)
A simple €50 flat fee covers the mandatory update of your property's details in Italy's cadastral database. This system tracks key property characteristics and official valuations nationwide.
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*Stamp duty (imposta di registro) is not calculated on actual purchase price, rather on assessed value by the "Catasto" and it vary depending if the property will be the primary residence or a second home. Please always refer to your eXp Agent for a more accurate estimate
VAT on Property Purchases
4 %​
New Primary Home
Reduced VAT rate when purchasing a newly built primary residence directly from construction companies or developers.
10%
New Second Home
Standard VAT rate for newly constructed second homes or holiday properties purchased from developers or builders.
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Additional Fixed Fees
Registration & Stamp Duties
Stamp duty (€200) and Land registry tax (€200)
Property Registration
Cadastral tax (€200) and Duties (€230)
Administrative Fees
Land registry fee (€35) and Cadastral fee (€55)
Notary Fees
Fee Calculation
Typically ranges from 1-3% of the property value, with variations based on transaction complexity, deed requirements, and regional notary rates. Higher fees may apply for properties over €500,000 or transactions requiring additional documentation.
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​Buyer Responsibility
The buyer traditionally covers all notary fees, including deed preparation, legal verification, and registration costs. These fees must be paid upfront before the final signing and cannot be included in mortgage financing.
Additional Costs to Consider
Translation Services
Professional translation of contracts, deeds, and legal documents, plus certified interpreter fees for official meetings and signings.
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Legal Assistance
Expert legal counsel to review contracts, protect your interests, and ensure compliance with Italian property laws throughout the purchase process.
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Property Inspection
Technical surveys, structural assessments, and detailed property reports from licensed professionals to verify the building's condition and value.
Understanding Italian Real Estate Listings
Listing Quality
Focus on established websites like expitaly.it, expluxury.com and immobiliare.it that verify their listings and agents. Avoid classified ads or unsecured platforms to protect yourself from potential scams.
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Property Presentation
Italian property listings often feature minimal staging and basic photos, unlike other markets. Focus on structural elements, location, and potential rather than current decoration or furniture arrangement.
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Virtual Tours
When viewing from abroad, always request comprehensive video tours or schedule real-time virtual viewings with the agent. Ask them to focus on structural elements, utilities, and any areas needing renovation.
Important Considerations for Listings
Tax Information Verification
Request detailed breakdown of VAT rates (4-22% for new properties), annual property taxes (IMU/TASI), and registration fees. Be especially thorough if the property is classified as luxury or if it's a second home, as different tax rates apply.
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Location Documentation
Request exact address, cadastral maps, and zoning certificates. Italian listings often omit precise locations, but you need these details to verify property boundaries, check local building restrictions, and assess neighborhood amenities like schools and transportation.
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Price History and Market Value
Ask for historical sale prices, recent comparable sales in the area, and any pending assessments or condominium fees. Some listings may show negotiable prices (trattabili) or require verification of actual market value through recent sales data.
Power of Attorney in Italian Property Purchases
General Power of Attorney (Procura Generale)
A comprehensive legal document that authorizes your representative to handle all aspects of the purchase process in Italy. They can negotiate prices, sign contracts, manage bank transactions, and represent you in all property-related matters. Typically costs €200-400 to establish and must be notarized in your home country and authenticated with an apostille stamp. Valid for the entire duration of the purchase process unless revoked.
Special Power of Attorney (Procura Speciale)
A targeted authorization limited to specific actions like signing the Final Deed (Rogito) or opening an Italian bank account. Must clearly state the exact property details and permitted actions. Usually costs €150-250 to establish. Popular among international buyers who can't attend the final signing. Must be renewed if the specified task isn't completed within the stated timeframe, typically 60-90 days.
Both types must be prepared in both Italian and English, notarized, and authenticated for use in Italy. Your notary can help determine which type best suits your needs based on your involvement in the purchase process.
Important Considerations for Listings
1 Research Thoroughly
Understand all aspects of the Italian property market.
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2 Seek Professional Help
Engage trusted agents, notaries, and legal advisors.
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3 Plan for All Costs
Budget for purchase price, taxes, and additional fees.
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4 Complete Legal Requirements
Obtain necessary documents and follow all legal procedures.
Why Choose an Experienced
FC eXp Advisor
Local Market Expertise
Deep understanding of regional property values, neighborhood characteristics, and market trends across different Italian regions. Invaluable insights into local property regulations and pricing dynamics.
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Navigate Complex Italian Bureaucracy
Expert guidance through Italy's unique property laws, building codes, and purchase procedures. Assistance with essential documentation like the "visura catastale" and "planimetria catastale".
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Professional Network
Established relationships with notaries (notai), property inspectors, and local authorities. Access to exclusive listings and off-market properties through professional connections.
Cultural & Language Bridge
Bilingual communication support for international buyers, helping bridge cultural differences in negotiation styles and business practices. Clear explanation of Italian real estate terminology and customs.
