Closing costs

When estimating the cost of purchasing your home in Italy there are five costs, other than the purchase price, that should be considered:-

  1. The Agent – 3% of agreed purchase price, minimum fee Euros 2800 + VAT 22%
  2. The Geometra – 1-2 % plus their costs, the VAT 22% and “expenses”
  3. The Notary – state imposed fee
  4. IVA, VAT or Sales Tax on the Agent, Geometra and Notary’s services
  5. The Government – % of the fiscal value of the house and value of the land

 

1.   The Agent – (The Italian Property Gallery Srl)

We charge 3% of the agreed purchase price with a minimum fee of Euros 2800 to which you have to add 22%.

This includes:-

  •      Visiting schedule.
  •      Organising accommodation and professional advice on your purchase.
  •      All mediation between you and the Vendor.
  •      Interface between you and the technical professionals e.g. Geometra.
  •      Opening of Italian bank account and Italian mortgage advice.[1]
  •      Obtaining codice fiscale (national insurance number needed to purchase).
  •      Translation services for the compromesso and Geometra’s survey.
  •      Provision of copy of final contract.

 

2.   The Geometra

Unlike the agent, who must be impartial under c.c.1754 of the Italian Civil code, the Geometra is paid by you to check both the legal and structural state of the house. The structural part of the Geometra’s survey is very basic. If you require a full building survey then this would be an extra fee, paid to a licensed structural engineer or a Geometra. The price, for this kind of structural survey, is typically between Euros 500-700, but could be more, so it always good to get a quote.

The Geometra then writes the preliminary contract and does the conveyancing.

The best Geometras cost 2%. On top of this they have to pay 6% of 50% of this fee to their professional board. There will also be expenses to obtain certificates from the various public offices in order to make your purchase a secure one, this are going to be classified as “expenses”.

In your ready reckoner, you should allow 2.5% for the Geometra in total.

 

3.   The Notary

The cost of the Notary is borne by the buyer and is a state controlled fee for their services to oversee registering the public contract of your house purchase. The Notary costs between Euros 1500 – 3000 depending on the cost of your house.

 

4.   IVA

All the above services are subject to IVA (VAT or Sales Tax) charged at 22%.

 

5.   The Government

You can buy your first house in Italy as a first home and, as long as you take residence within 18 months, you would pay just 2% transfer tax. If you think you may sell your property within 5 years or if you don’t think you can prove residency, then you should buy as non-resident.

If you buying as a non-resident (recommend if you are not staying in Italy for more than 6 months continuously) the tax will be 9% of fiscal value.  The fiscal value of the house is based on the cadastral value of the property revalued of 5% then multiplied by a coefficient given by the cadastral category.

Land is taxed at 12% but has a very low fiscal value (sometimes less than a euro per M Sq).

[1] We cannot act as brokers and cannot compare banks for you, we can, however, assist you with forwarding documentation and hastening the application. If you ask for extensive consultations with financial institutions, we may have to charge consultancy rates.

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