Buying a home in Italy is a dream for many, but the real cost of buying property in Italy in 2025 goes beyond the purchase price alone. Hidden fees, regional taxes and mandatory legal services can add 9%–15% to the final bill. Whether you’re purchasing a seaside villa or a city-center apartment, understanding these expenses is key to budgeting realistically and avoiding surprises.
This guide from De Tullio Law Firm will walk you through all the key costs, including real purchase examples, regional price trends and advice on how to reduce your outlay while ensuring legal security.
What is the Average Purchase Price per Square Metre in Italy in 2025?
To fully understand the investment required, it’s important to first assess what buyers are paying per square metre across Italy in 2025. Real estate prices vary widely depending on the region, property type and local demand.
In major cities like Milan, the average cost per square metre is around €5,400, reflecting strong demand from both domestic and international investors. Rome averages €3,800 per sqm, though prime areas in the historic center can command significantly more. Florence remains highly desirable with prices averaging €4,200 per sqm, thanks to its artistic and tourist appeal.
Coastal regions such as the Amalfi Coast are among the most expensive, with average prices exceeding €6,000 per sqm, particularly for sea-view properties. On the other end of the spectrum, Sicily continues to offer excellent value, with properties in cities like Palermo or Catania available for €1,500 to €2,000 per sqm. Rural areas and small towns in the south can be even more affordable.
Milan, Rome, Florence, Amalfi Coast, Sicily – 2025 Per Sqm Prices
| City / Region | Avg. Price (€/sqm) | Notes |
|---|---|---|
| Milan | €5,400 | Business hub, luxury demand |
| Rome | €3,800 | Higher in historic center |
| Florence | €4,200 | Touristic and artistic hub |
| Amalfi Coast | €6,000+ | Luxury and international buyers |
| Sicily (e.g., Catania, Palermo) | €1,500–€2,000 | Bargains in smaller towns |
Regional Price Variation and Year-on-Year Trends
From 2024 to 2025, the national average rose around 2.1%, with hotspots like Milan and Lake Como seeing gains of up to 4.5%. However, southern regions such as Basilicata, Calabria, Basilicata remain much more affordable, with average prices under €1,200/sqm.
What Are the Mandatory Purchase-Related Fees in Italy?
When calculating the real cost to buy real estate in Italy, buyers must factor in a range of Italy property purchase costs. These include registration taxes, notary and legal fees, and real estate agent commissions.
Registration (Imposta di Registro) and VAT Rates
Registration Tax:
– Prima casa (first home): 2% of cadastral value (land registry, not market value)
– Second home: 9% of cadastral value
Example: For a €250,000 resale property (not a new build), the registration tax is approximately €5,000 if it qualifies as your prima casa (primary home at the reduced 2% rate). If it’s a second home or doesn’t meet the criteria, the tax increases to about €11,250 at the standard 9% rate.
VAT (IVA):
– Applied on new builds when buying directly from developers. Rates vary:
– 4% for prima casa,
– 10% for reduced rate properties, and
– 22% for luxury or commercial properties
Example: For a new-build property priced at €400,000 purchased as a prima casa, VAT would be charged at 4%, amounting to €16,000. For a similar new build that does not qualify as a primary residence, VAT could be 10%, totaling €40,000, or 22% (€88,000) if classified as luxury.
Notary and Legal Fees
In Italy, a notary (notaio) is legally required to oversee all property transactions. The notary is a public official acting on behalf of the Italian state. The notary ensures that the deed of sale is correctly executed, all relevant taxes are paid, and the transaction is duly registered with the appropriate authorities. However, by law the notary must remain impartial in the transaction and cannot therefore represent either the buyer’s or vendor’s interests.
While legal assistance is not mandatory in Italy, engaging your own attorney provides essential protection – verifying the validity of documents, confirming a clean property title, identifying hidden liabilities and safeguarding your investment throughout the process.
Notary fees: 1%–2.5% of the declared property value (negotiable)
Legal fees: Typically range from €2,000 to €5,000 depending on complexity
Real Estate Agent Commissions in Italy
In Italy, real estate agents (agenti immobiliari) typically charge a commission to both the buyer and the seller – a practice that differs from some other countries where only one party pays agent fees.
For buyers, the commission usually ranges between 3% and 5% of the final purchase price, plus 22% VAT. This fee is generally due at the signing of the preliminary purchase agreement (compromesso), although some agents collect it upon the final deed (atto di vendita or rogito), depending on contractual terms.
While standard, these commissions are not fixed by law and can often be negotiated, especially in cases where:
– The agency does not hold an exclusive mandate
– The buyer is paying in cash or has a fast transaction timeline
– A legal advisor is managing the negotiation
To avoid surprises, always request a written agreement clearly stating the commission rate, payment terms and scope of services. Additionally, buyers should confirm that the agent is registered with the local Chamber of Commerce (Camera di Commercio) and holds a valid REA number. This ensures they are authorized to operate and offers legal protections in case of disputes.
In addition, if you’re using an international agency or a property portal, double-check whether the listed price includes the buyer’s commission or if it will be added separately.
Surveys, Translation, and Miscellaneous Closing Costs
Additional closing costs may include technical surveys and inspections, which, while not legally mandatory in most cases, are strongly recommended. These evaluations help buyers identify potential structural, legal, or compliance issues before finalizing the purchase.
Common types of reports and certificates include:
- A perizia tecnica, a technical inspection that assesses structural soundness, signs of damp, foundation movement, and any unauthorized building work.
- The APE (Attestato di Prestazione Energetica), an energy performance certificate that is legally required for all Italian property sales and rentals.
- The certificato di agibilità (certificate of habitability), which confirms that the property meets basic health, safety, and legal standards for occupancy – including sanitation, ventilation, and building code compliance.
- And, in certain cases, a geotechnical survey, especially for countryside or hillside properties, to evaluate soil stability, drainage and landslide risk.
Costs typically range from €1,000 to €2,000, depending on the property’s condition, location and the scope of reporting. Although optional, these documents can be crucial in avoiding costly repairs, confirming that the property is legally built and habitable, and renegotiating the price if issues arise. They are a worthwhile safeguard for any buyer – especially international clients less familiar with Italian construction standards and bureaucracy.
For non-Italian speakers, a certified translator or interpreter may be necessary. By law, during the reading and signing of the final deed, if the notary deems it necessary, you must have a interpreter present. Translation and interpreting fees range from €500 to €1,000.
Administrative charges – such as title search fees, cadastral document updates, and registration stamps – can add another €300 to €600 to the final cost.
How Much Do Real Purchase Examples Actually Cost (2025 Case Studies)?
Understanding theoretical costs is helpful, but real-world examples offer clearer insight into the true cost of buying property in Italy in 2025. The total amount you’ll pay depends on whether the property will be your primary residence (prima casa) or a second home – such as a holiday property or buy-to-let investment. Below are four scenarios reflecting different property types, values, and tax situations, including resale homes (not new), villas, renovation projects and new-builds.
€250,000 Resale Property (Prima Casa) – Approximately 8.4% in Additional Costs
– Registration tax (2%): €5,000
– Notary and legal fees: €4,500
– Estate agent commission (3%): €7,500 + €1,650 VAT (22%) = €9,150
– Survey, translation, and admin: €2,000
Total additional costs: approx. €20,650
Total purchase cost: €270,650
€500,000 Villa (Second Home) – Approximately 13% in Additional Costs
– Registration tax (9%): €45,000
– Notary and legal fees: €7,500
– Estate agent commission (4%): €20,000 + €4,400 VAT = €24,400
– Survey, translation, and energy report: €3,500
Total additional costs: approx. €80,400
Total purchase cost: €580,400
€180,000 Renovation Property (Fixer-Upper, Prima Casa) – Approximately 10% in Additional Costs
– Registration tax (2%): €3,600
– Notary and legal fees: €4,000
– Estate agent commission (3%): €5,400 + €1,188 VAT = €6,588
– Structural and technical surveys: €2,000
– Architectural consultation for renovation grants: €1,000
Total additional costs: approx. €17,200
Total purchase cost: €197,200
Note: Renovation budget not included. Buyers may be eligible for government incentives for energy efficiency and restoration.
€400,000 New-Build Property – Approximately 11.5% in Additional Costs
– VAT (10%) in place of registration tax: €40,000
– Notary and legal fees: €6,000
– Estate agent commission (3.5%): €14,000 + €3,080 VAT = €17,080
– Translation, energy certificate, and snag inspection: €3,500
Total additional costs: approx. €66,580
Total purchase cost: €466,580
Note: Prima casa buyers may qualify for reduced VAT at 4% on new-builds.
Prima Casa Tax Savings: A Significant Advantage
Claiming prima casa (primary home) status can dramatically reduce upfront taxes. For instance, on a €350,000 resale property:
– Prima casa registration tax (2%): €7,000
– Standard rate (9%): €31,500
Total tax savings: €24,500
To qualify, buyers must:
– Establish residency in the property within 18 months of purchase
– Not own another primary home in Italy
– Maintain the property as their main residence for at least five years
Note: Failure to meet these criteria can result in a retroactive tax adjustment, with added penalties and interest.
What Hidden Costs and Long-Term Charges Should Buyers Plan For?
Beyond closing, property ownership in Italy involves ongoing costs that are easy to overlook.
One of the most important is the IMU (Imposta Municipale Unica), a municipal property tax. While IMU is not charged on first homes (prima casa) that meet specific criteria, it applies to second homes and can range from 0.46% to 1.06% of the cadastral value per year.
Another recurring cost is TARI, the waste collection and disposal tax. Depending on the property’s size and location, TARI usually ranges from €200 to €600 annually.
Homeowners should also budget for maintenance and repairs, particularly for older or rural properties, which may require annual spending equal to 1% to 2% of the property’s market value. Energy efficiency upgrades, roof repairs, and plumbing modernizations are common post-purchase expenses.
For buyers using non-euro currencies, exchange rate fluctuations and international transfer fees can also impact the total cost of purchasing property in Italy. Bank or foreign exchange provider fees typically range from 0.3% to 1% of the transfer amount. To reduce costs and improve efficiency, many buyers opt for dedicated currency transfer services rather than traditional banks. These specialized providers often offer more competitive exchange rates, lower fees and faster clearing.
How Can Buyers Reduce Costs When Purchasing in Italy?
Smart planning and engaging a legal advisor can reduce your total spend by tens of thousands of euros.
Prima Casa Designation and Residency Timing
– Timing your residency declaration properly can qualify you for prima casa
– Even non-EU citizens can apply if planning to reside long term
Regional Arbitrage: North vs South
– A €300,000 budget buys a small flat in Milan but a villa in Puglia or Sicily
– Lower property taxes and costs of living in southern regions
Negotiating Fees with Professionals
Buyers can also save by negotiating estate agent commissions and professional fees, which are not fixed. When legal services, translation and notarial oversight are bundled or managed by a single firm, costs can often be reduced.
Considering Fixer-Uppers and Renovation Grants
Italy continues to offer other renovation incentives to encourage property upgrades and energy efficiency improvements. The Ecobonus provides a tax deduction of up to 65% for energy-saving interventions, such as thermal insulation and the replacement of heating systems. Additionally, the Bonus Ristrutturazioni offers a 50% tax deduction for general property renovations, including structural and aesthetic improvements. These incentives can significantly reduce the long-term cost of owning and improving a property in Italy, especially for buyers interested in fixer-uppers or energy-efficient homes.
How a Legal Advisor Helps Manage and Plan Costs
A legal advisor plays a crucial role in making your Italian property purchase smooth and cost-effective.
Clear Fee Breakdown
They provide detailed estimates of all costs – taxes, notary fees, estate agent commissions – so you know what to expect. For example, they can clarify when VAT applies versus registration tax, helping you budget accurately.
Guidance on Prima Casa and Tax Benefits
Advisors assess if you qualify for prima casa tax breaks and guide you through residency rules to maximise savings, potentially reducing taxes from 9% to 2% on the purchase price.
Coordination of Stakeholders
By liaising with notaries, agents, and banks, they ensure paperwork and payments happen on time, preventing delays that could incur extra costs, such as penalties or lost deposits.
Protective Contract Clauses
They draft clauses to safeguard your deposit, include financing contingencies, or allow for renovation delays—protecting you from unexpected expenses or contractual pitfalls after signing.
Need Help Budgeting for Italian Property Purchase Costs in 2025?
With over 60 years of experience, De Tullio Law Firm supports international buyers across Italy, guiding them through every stage of the property purchase process. We help you minimise unnecessary costs, avoid legal pitfalls and ensure a smooth, compliant transaction.
Whether you’re still exploring the market or ready to sign a reservation offer, we offer a free preliminary consultation to discuss your specific needs and provide tailored advice. Schedule a call at your convenience.
Learn more about our property buying services. If you’re considering financing, check out our guide on how to get a mortgage in Italy. Buyers may also benefit from our expertise on the European Mortgage Credit Directive.
Frequently Asked Questions (FAQ)
What percentage of the purchase price are fees and taxes?
Expect 9% to 15% on top of the purchase price, depending on whether it’s a new build, primary home, or investment.
How much can I save with prima casa status?
Up to €25,000–€50,000 depending on the purchase value. It significantly reduces registration tax.
Is agent commission negotiable in Italy?
Yes. Typical range is 3%–5%, but you can often negotiate this—especially if you are using your own legal advisor.
Should I budget renovation separately?
Absolutely. Renovation costs and permits are not included in property purchase costs. Get quotes upfront.
Are there annual property taxes after purchase?
Yes. In Italy, property ownership comes with ongoing annual taxes. Even if the property is your primary residence, you will typically pay TARI, which covers waste collection and sanitation services. For second homes or investment properties, the IMU (Imposta Municipale Unica) tax applies. This is a municipal tax based on the property’s value. Additionally, some local municipalities may impose extra taxes or fees. It’s important to budget for these recurring costs as part of your overall property expenses.
- Featured Snippet Summary
In 2025, the total cost of buying property in Italy typically ranges from 9% to 15% above the purchase price. Buyers should account for registration tax, notary and legal fees, real estate agent commissions, and smaller administrative expenses. For a €500,000 property, this could mean an additional €45,000 to €75,000 in closing costs.
