When buying a new home in Italy, you’ll have to pay several different types of tax and some additional fees. These include a registration fee, a fee the mortgagee must pay, and a land-registry fee; purchases made by companies are subject to VAT (value-added tax). There are significant savings when purchasing a first home (prima casa or Erstwohnung – website available in German and Italian). One stipulated condition for this type of tax break is that the property must either be a primary residence or a company headquarters. Another is that the buyer may not be the owner or co-owner of other property in the same municipality and must not ever have taken a tax benefit for the purchase of a first home< in Italy. If the primary residence is sold again within five years, a penalty is payable.
Other major cost factors when buying a home include notary fees for the certification of the purchase contract and the loan agreement. If the property is purchased through an estate agent, the buyer and the seller alike typically pay between 2% and 3% of the purchase price in commission.