Budgeting for your purchase

The buying process in Italy is relatively simple but you need to budget accordingly.

Whilst costs can vary, as a guide, we’d advise you to budget for between 11% and 14% on top of the purchase price. These costs are comprised of the following:

• VAT ( ‘Imposta sul Valore Aggiunto’) of 10% of the purchase price.
• Notary fees and ‘Cadastral’ tax.
• A mortgage tax (applicable if a mortgage is required for the purchase).
• Registration tax.

NOTE: The VAT percentage is reduced to 4% of the purchase price if the property is to be used as the primary home.

Payment Schedule

When buying a new-build property, payments should be made as follows:

1. A 3000 euro deposit is due upon reservation of the property.
2. 50% is then due within 28 days (less the 3000 euro deposit already paid).
3. Upon completion the remaining 50% balance is payable.

Mortgages

Mortgages based upon releasing equity or secured against the Italian property are readily available. We can help advise you on all the various fi nance options that exist dependent upon individual circumstances.