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
  2. The Geometra – 1-2 % plus their costs
  3. The Notary – state imposed fee
  4. IVA, VAT or Sales Tax on the Agent, Geometra and Notary’s services
  5. The Government – 4-11% of the fiscal value of the house

 

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

We charge 3% of the agreed purchase price with a minimum fee of Euros 2800.

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, final contract 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 the 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 is typically between Euros 500-700.

The Geometra then writes the 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.

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 20%.

 

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 3% 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 pay 10% of the fiscal value of the property. The fiscal value of a house is usually about half that of the purchase price.

Land is taxed at 18% 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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