In 30 seconds
Besides the price, a foreign buyer pays taxes that depend on who sells (a private owner or a builder), the notary, the agency commission if an agent is involved, and later the yearly property taxes. For a second home the registration tax is higher than for a main residence. Ask for a written list of every cost before you sign the preliminary contract.
Many buyers from the US and the UK compare the price of a home in Naples, Campania or Puglia with what they pay at home and forget the “extras”. In Italy these can be a meaningful part of the budget. This guide lists the main items and the questions to ask. Rates change, so every figure below should be checked against the Revenue Agency’s current information before you commit. For the full purchase process see our step-by-step guide.
Who is the seller: private owner or builder
The taxes on the purchase deed depend mainly on the seller. According to the Revenue Agency’s guidance, a purchase from a private individual normally pays a registration tax calculated on the cadastral value (not on the price), plus fixed mortgage and cadastral taxes. A purchase from a builder or company within a set period after construction or renovation is generally subject to VAT, with fixed registration, mortgage and cadastral taxes.
| Seller | Main tax on the deed | What to check |
|---|---|---|
| Private individual, main residence | Registration tax at a reduced rate (about 2%) | Requirements for the “prima casa” benefit, including residence |
| Private individual, second home | Registration tax at the ordinary rate (about 9%) | Calculated on the cadastral value; minimum amount applies |
| Builder or company | VAT at 4%, 10% or 22% depending on the case | Category of the property and use as main residence |
The percentages above are those usually quoted; confirm them for your purchase and your date of signing.
Why a foreign buyer often pays the second-home rate
The reduced rate for a main residence is reserved for buyers who meet conditions set by law, which normally include having or moving their residence in the municipality where the property is within a fixed period after the purchase. A foreigner who keeps living abroad and buys a holiday home usually falls under the second-home rate. Do not assume the benefit applies: declaring it wrongly can lead to the tax being recovered with penalties.
Frequent case
A problem that happens often. Frequent case described in general terms: names, places and details do not refer to real people or cases.
A buyer from the UK agrees to buy a flat in Naples for a price that looks lower than comparable homes at home. At the notary she learns that, because the flat is a second home bought from a private owner, the registration tax is calculated at the ordinary rate, and she had not budgeted for the notary, translator and agency fees. A written breakdown requested before the preliminary contract would have avoided the surprise.
The best path for you
Usually the best path is: (1) ask the seller and the notary for a written breakdown of taxes and fees; (2) decide before signing whether you will qualify for any reduced rate; (3) have a lawyer check the title and planning position before you pay the deposit; (4) keep a reserve for running costs in the first year.
Facing a similar situation? You can send your documents to the firm for an assessment, from anywhere in the world.
Notary, agency and other professional costs
- Notary. The notary prepares and signs the deed, checks title and registers the transfer. The fee is set by the notary and depends on the value and the work involved. Ask for an estimate in writing.
- Agency commission. Normally owed only if an agent was involved, usually as a percentage agreed in the mandate. See our guide on commissions.
- Lawyer and surveyor. Title and planning checks before the preliminary contract cost far less than a mistake after the deed.
- Translator and interpreter. The deed is in Italian; a foreign buyer who does not speak the language should be assisted by a translator at the signing.
- Mortgage costs. If you borrow, add the bank’s fees, valuation and the notary’s part for the loan deed.
The deposit and the preliminary contract
The preliminary contract (“compromesso”) usually includes a deposit (caparra), often a percentage of the price. A “caparra confirmatoria” has specific effects under the Civil Code if one party withdraws or defaults. Never pay it before the lawyer has checked the property and the contract. For the risks, see our guide on deposits, notary and price.
Costs after the purchase
- Property taxes. The municipal property tax (IMU) and the waste tax (TARI) are due on most homes; a main residence is generally exempt from IMU unless it is a luxury category.
- Condominium expenses. Ordinary and extraordinary costs, decided by the assembly. See our guide.
- Utilities and fiscal code. You need an Italian tax code (codice fiscale) to buy and to sign contracts.
- Taxes in your home country. The firm does not advise on US or UK taxes; ask your home-country adviser.
How attorney Fiorentino can follow you
- Check the preliminary contract and the list of costs before you pay the deposit.
- Coordinate with the notary and a surveyor so that the figures are clear.
- Assist you at the signing, including through a power of attorney if you cannot attend: see our guide.
Frequently asked questions
Do I pay taxes on the price or on the cadastral value?
For a purchase from a private individual the registration tax is usually calculated on the cadastral value, not on the declared price. The notary calculates it for your case.
Can a non-resident get the reduced main-residence rate?
Only if the legal conditions are met, which normally include residence in the municipality. Check before signing.
Who pays the notary?
By custom the buyer, but it is a matter that can be agreed in writing.
Do I need a lawyer as well as a notary?
The notary is a public official and acts for both parties. A lawyer acts only for you and checks the contract before you commit.
Related guides
Learn more: Legal guides from Studio Legale Fiorentino.
Buying a home in Italy?
Every situation must be assessed on the documents of the specific case. You can consult the firm from anywhere in the world: by video call, phone, WhatsApp or email. Appointments in person in Naples (Piazza Giovanni Bovio 22 and Via Monte di Dio 14), Rome and Bari.
Official sources
Information updated on October 13, 2026. This is general information, not legal advice. The firm does not advise on United States or United Kingdom law or taxes.
Do you have a similar issue?
Every situation depends on the documents of the specific case. You can contact the firm from anywhere, remotely.