The price of the house plus around 10% is a safe calculation - more or less.

For the sake of keeping it simple let’s say the house price has been negotiated to €500,000.

On top of this, you have the agent’s commission. This is usually 4% - some charge 3% some up to 6%. So, we’re talking €24,000 as there’s 22% VAT that has to be added. This is paid on the signing of the first contract, the compromesso. Some agents will take it on final signing at the notary’s office.

An independent survey will be around €500 - €1000.

At the signing of the deed, you have to hand the notary a check for his fee and the taxes. Or you can send a bank transfer in advance.

The taxes are calculated in what might seem an odd way. We need a short history lesson to understand why they are done in the way they are.

In the not-too-distant past the taxes were calculated according to how much the house sold for - this was up to about 16 years ago.

There was a set percentage on the sale price but to pay less buyers would push a large amount of cash under the table to the seller. The deed then showed a lower sum than what was really paid. Maybe on a €500,000 house, €400,000 would paid by cheque and €100,000 in cash.

The government knew this was going on so they introduced a Land Registry value to every house and land - it’s according to different factors. This means that no matter if you got the house for €1 or €1m you pay more or less the same in taxes.

To get this figure the agent asks the notary in advance to make the calculation. So, well in advance the agent will give you all the costs. They’re always stated as being ‘estimates’ but I’ve never known a value to be different in the end.

The taxes are also very different, in fact around half, if you’re planning to have residency in the house within 18 months of the signing.

• If you have residency in the house this is called - Prima Casa (first house).
• If you don’t have residency is called - Seconda Casa (second house).

If you don’t get residency within the 18-month period you get a fine and have to pay the balance. But 18 months is a long time.

Here’s an example:

• Price of the house 500,000 €
• Survey 1,000 €
Taxes and notary:
• Prima Casa 4,000 €
• or Seconda Casa 8,000 €


• Agent’s commission 24,000 €
• Proxy - translation 1,000 €
• Bills changed over 700 €

So, in this example, the cost of buying is around €35,000 (if you’re not getting residency). It would be safe to assume a house advertised for €550,000 could be negotiated down to €500,000, so that brings the total spent to €535,000. €25,000 less than the original asking price all in!

Once the papers are signed and the money is paid over the house is yours. You leave the notary’s office with the keys in your hand.

If the house is Seconda Casa you’ll have to pay a yearly tax. On our €500k example house expect to pay around €450/year. If you have residency at that house you pay nothing. Other costs are gas, water and electricity.

Here are typical words used to describe the utilities:

That’s it! You own a house in Italy! What a journey..!!! Make it fun and accept that things aren’t done in the same way they are done back home and you’ll be fine.

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Many thanks!
Richard Edwards

Watch my Buyer's Guide series on YouTube