Italian Notary Fees and Property Taxes Explained: A Complete Guide for Foreign Buyers

How Notary Fees Work in Italy

Italy no longer applies a fixed national tariff system for notary fees. Since the deregulation of professional tariffs (Decreto Bersani, 2006, and subsequent reforms), fees are freely negotiated between the notary and the client.

In practice, fees are influenced by four factors: the declared value of the property, the complexity of the deed, whether a mortgage is involved, and whether foreign-language documentation or a power of attorney is required.

What buyers commonly see on the notary’s invoice as “spese notarili” is actually a combination of distinct items: the notary’s professional fee (onorario), VAT on the professional fee (22%), mandatory contributions to the National Notarial Fund (Cassa Nazionale del Notariato), and advance payments for taxes and filing expenses that the notary collects and remits on behalf of the state.

These ranges cover the professional fee only. They do not include taxes, filing costs, or ancillary expenses, which are itemized separately on the notary’s bill.

If a mortgage is involved, a separate notarial deed is required for the loan agreement. This adds a second professional fee, typically between €800 and €2,000 depending on the loan amount, plus the corresponding registration costs.

→ Need a personalized estimate? Request a cost breakdown from our notary team.

Property Transfer Taxes: The Core Cost

Transfer taxes represent the largest component of closing costs in Italy — often far exceeding the notary’s own fee. The tax structure depends on two variables: who the seller is (private individual or developer/company) and whether the buyer qualifies for prima casa relief.

Buying from a Private Seller (or VAT-Exempt Company)

When the seller is a private individual or a company that is exempt from VAT, the buyer pays registration tax (imposta di registro) calculated on the cadastral value of the property — not the sale price. The cadastral value is typically much lower than the market price, which significantly reduces the tax base.

Example: For a resale property with a cadastral value of €100,000, a prima casa buyer pays approximately €2,000 in registration tax plus €100 in fixed taxes. A second-home buyer pays approximately €9,000 plus €100.

Buying from a Developer (VAT Sale)

When the seller is a developer or a company selling within 5 years of construction/renovation, VAT (IVA) applies instead of registration tax. VAT is calculated on the full sale price, not the cadastral value — a critical difference that often makes new-build purchases significantly more expensive in tax terms.

Example: For a new-build property priced at €400,000, a prima casa buyer pays €16,000 in VAT plus €600 in fixed taxes. A second-home buyer pays €40,000 in VAT plus €600. A luxury classification would push VAT to €88,000.

Who Qualifies for Prima Casa Relief?

Prima casa (first home) tax relief is not reserved for Italian citizens. Any buyer — including foreigners — can qualify, provided they meet three conditions:

1. The property is not classified as luxury (cadastral categories A/1, A/8, or A/9).
2. The buyer does not already own another property purchased with prima casa benefits in the same municipality, or commits to sell it within 24 months (extended from 12 months by the 2025 Budget Law).
3. The buyer establishes legal residency (residenza) in the municipality where the property is located within 18 months of the purchase.

The third condition is the most relevant for foreign buyers: you do not need to be a resident at the time of purchase, but you must commit to becoming one within 18 months. If you fail to transfer residency within the deadline, the tax authorities will reclaim the difference between the reduced rate and the standard rate, plus interest and a 30% penalty.

→ Planning to establish residency? Our notary team can advise on the implications before you sign.

Additional Costs Foreign Buyers Should Budget For

Beyond the notary fee and transfer taxes, international buyers should budget for several ancillary costs that are often overlooked.

Sworn translator (traduttore giurato). Italian law requires a certified translator to be present at the signing of the deed if any party does not speak Italian fluently. Cost: typically €500–€1,500, depending on the length of the deed and the translator’s rates.

Power of attorney (procura notarile). If you cannot attend the signing in person, a power of attorney must be prepared, notarized, apostilled (or legalized), and translated. The combined cost ranges from €500 to €1,500. Our office handles the full coordination.

Codice fiscale (Italian tax code). Required for all parties. Obtaining it is free through the Agenzia delle Entrate or an Italian consulate, but if arranged through a professional, expect a service fee of €100–€250.

Cadastral and land registry searches (visure). The notary performs these as part of due diligence. The cost is typically included in the notary’s overall bill but may be itemized separately: €100–€300.

Preliminary contract registration. If the compromesso is registered with the Agenzia delle Entrate — which is advisable for buyer protection — the registration tax is 0.5% of the deposit paid, credited against the final tax at closing. Filing fees add approximately €200–€350.

Real estate agent commission. Not a notarial cost, but a significant line item. In Italy, both buyer and seller typically pay the agent: 3%–4% of the purchase price each, plus 22% VAT. This is often the largest single cost after the property price itself.

Under-36 First Home Bonus: No Longer Available

The Under-36 first home tax exemption (Bonus Prima Casa Under 36), which provided full exemption from registration, mortgage, and cadastral taxes for eligible young buyers, is no longer available for new purchases.

The benefit was originally introduced by Decree-Law 73/2021 and extended through transitional provisions. The 2024 Budget Law did not renew the exemption. A limited extension applied to deeds completed by December 31, 2024, but only if a preliminary contract had been registered by December 31, 2023.

As of 2025, young buyers can still access the standard prima casa regime (2% registration tax or 4% VAT) and the First Home Loan Guarantee Fund (Fondo di Garanzia Prima Casa), which facilitates mortgage access with a state guarantee of up to 80% for buyers under 36 with an ISEE below €40,000. But the full tax exemption is gone.

Resident vs. Non-Resident: Cost Comparison

The tax burden on a property purchase in Italy depends on residency status and prima casa eligibility, not on nationality.

A non-resident foreign buyer who commits to establishing residency within 18 months can still access prima casa rates at the time of purchase — but assumes the risk of penalty if residency is not actually established.

Full Cost Estimate: Two Worked Examples

Frequently Asked Questions

Official Sources

• Agenzia delle Entrate — Guida acquisto casa — Official guide on property transfer taxes.
• Consiglio Nazionale del Notariato — Guida Prima Casa — National Notarial Council guide on prima casa benefits (2025 edition).
• Agenzia delle Entrate — Imposta di Registro — Registration tax reference.
• DPR 131/1986 — Consolidated text on registration tax law.