Buying Property in Italy: What Fees and Taxes to Expect in 2024?

Buying Property in Italy: What Fees and Taxes to Expect in 2024?

Purchasing real estate in Italy involves various taxes and fees, which vary depending on whether you’re buying from a private individual or a company, and whether you qualify for the “prima casa” (first home) tax benefit.
Here are the official rules updated for 2024.

📘 Main source: Agenzia delle Entrate – “L’acquisto della casa”, June 2024 (PDF)

---

🧾 1. Taxes Payable When Buying Property

📌 If you’re buying from a private individual or a VAT-exempt company:

💡 These taxes are calculated on the cadastral value of the property (prezzo-valore system), if the buyer is a private individual.
The registration tax is the most significant in this case.

---

📌 If you’re buying from a VAT-registered company (e.g., new build):

* 22% VAT applies if the property is classified as a luxury residence (categories A/1, A/8, or A/9).
🔹 The seller can choose to apply VAT even after 5 years, if this is declared in the deed.

---

🏠 2. Who Is Eligible for the “Prima Casa” Tax Benefit?

To qualify for reduced tax rates, the buyer must:

• Not already own another property purchased under the same tax benefit,

• Commit to establishing residency in the municipality of the property within 18 months,

• Purchase a property not classified as luxury.

🟢 Young buyers under 36 with an ISEE below €40,000 enjoy additional benefits until 31 December 2024:

• Exemption from registration tax,

• Tax credit on VAT paid.

---

💼 3. Additional Costs to Consider

✅ Notary fees
Vary based on the value of the property, location, and complexity.
🧮 Average: 1% to 2.5% of the property price

✅ Real estate agency commission
Applicable if buying through an intermediary.
📌 Usually 2% to 4%, shared between buyer and seller
🔸 Subject to 22% VAT

✅ Translation and/or legal support
Highly recommended for non-residents.
📎 Budget: €600 to €3,000 depending on the value and complexity of the transaction

---

🧾 4. Registering the Preliminary Contract (Compromesso)

If you sign a preliminary agreement (compromesso) before the final deed:

• You must register it within 30 days

• You will pay:

  • €200 fixed tax

  • 0.50% on the deposit (caparra confirmatoria)

  • 3% on any price advances (acconti sul prezzo)

💡 These amounts are deducted from the taxes due at the time of the final deed.

---

📊 Cost Example: €200,000 Purchase with “Prima Casa” Benefit

👉 Without the prima casa benefit, registration tax would rise to €18,000 (9%), meaning a potential saving of €14,000.

---

📝 Conclusion

Buying property in Italy remains affordable, but it’s essential to include all fees and taxes in your budget. The Italian system is particularly favourable for:

• First-time buyers,

• Retirees relocating to Italy,

• Buyers investing in southern regions.

---

🔗 Official Sources:

• Agenzia delle Entrate – 2024 Buyer’s Guide

• Circolare 14/E – Young Buyer Incentives