Buy a Home in Italy: New Estate Agent Fees

A significant change is coming to the real estate market in Italy. Published in the Italian Official Gazette on December 13, 2024, Labor Law No. 203 will come into effect on January 12, 2025. This law introduces a simplified approach to handling real estate agent commissions in notarial deeds. The new law eliminates the obligation to explicitly state the amount of commissions paid to real estate agents in such deeds, offering several advantages to those who buy a home in Italy, as well as for the vendors.

Key Changes Introduced by the Law

Under the new legislation, the deed of sale must only indicate whether a mediator was involved in the negotiation. Additionally, the parties must:

1. Provide Invoice Number: the number of the invoice issued by realtors must be quoted, but not the commission amount.
2. Confirm Payment Compliance: the deed must confirm the payment matches the amount stated on the tax document.

This approach ensures that the transaction complies with legal requirements while reducing unnecessary administrative complexity.

Privacy Benefits for Buyers and Sellers When Buying A Home in Italy

One of the most notable benefits of the new law is the enhanced privacy it affords to buyers and sellers. By removing the obligation to disclose real estate agent commission amounts in the deed, both parties can negotiate fees with real estate agents without external or public scrutiny. This flexibility fosters more open discussions and agreements tailored to the specific needs and preferences of the parties involved.

Transparency and Traceability

While the new law removes the need to declare commission amounts in notarial deeds, it upholds transparency through the requirement of electronic invoicing. The electronic invoice obligation ensures that all payments are traceable and compliant with Italian tax laws. This measure encourages ethical behavior by all parties, including real estate agents, and reduces the likelihood of tax evasion or other financial discrepancies.

Reduction in Disputes

Removing commission details in the deed reduces disputes over agent payments, benefiting both buyers and sellers. Focusing on the invoice number and tax compliance prevents misunderstandings or conflicts over commission amounts. This streamlined approach fosters smoother transactions and greater trust among the parties involved.

A Step Forward in Simplification: Making It Easier to Buy a Home in Italy

Labor Law No. 203 is part of a broader effort to simplify administrative processes in Italy. This change advances the real estate market by making property transactions more efficient, private, and transparent. Buyers and sellers alike will benefit from reduced bureaucracy, fewer risks of contention and a clearer framework for negotiating and recording agent commissions.

The new legislation removes the obligation to indicate commission amounts but still requires providing the invoice number and tax or VAT code of the agent.
From a transparency perspective, this ensures traceable, compliant transactions.

Moreover, for buyers and sellers, not specifying commissions reduces disputes over real estate agent agent payments.

Finally …

The elimination of the commission amounts in notarial deeds marks a pivotal change in Italy’s real estate sector. By balancing privacy, transparency, and traceability, the new legislation creates a more efficient and buyer-friendly environment for property transactions. As the law comes into effect, it is expected to encourage a more trustworthy real estate market for both domestic and international buyers.

If you’re looking to buy a home in Italy, or want to sell a property, now is the perfect time to explore the benefits of this new legislation. In order to do so, expert legal guidance can be invaluable. Our team of specialized real estate lawyers is here for you with all the information and legal support you need. Contact us or book a call with our office for tailored legal advice.