Italian Mortgage Fees payable in Italy

In Italy you will find that the taxes and costs involved in buying differ from those found in the UK. You will need a Notaio (Notary Public) to check what Government taxes and legal costs you will be liable for, before committing yourself to purchase.

For example, you will need to pay an Italian mortgage registration tax of between 0.25% and 2% of the value of the Italian mortgage, depending on whether you intend to become a permanent resident if Italy.

An amount of approximately 500 Euros is also needed to allow for the survey and administration fees, though this can be a lot higher if the property is of a high value.

As in the UK you can also be subject to "early redemption fees" and these can range typically between 1% and 5%

Italian Purchase Taxes

Purchase taxes are paid once the final contract (Compravendita) is signed.

If the purchasers already own property in Italy, or are not resident (and have no intention of taking up permanent residency in Italy) then the rate is 10% of the value of the building, and 18% of the value of the land. If the property is the first to be purchased in Italy and you intend to take up permanent residency within 18 months of the purchase, the purchase tax is 4%, however the 18% land tax remains the same.

Final Act of Completion

At the time of the final act of completion the property must be free of all fiscal charges, ongoing disputes, outstanding debts, existing mortgages, and judicial registrations otherwise the banks will not complete on the Italian mortgage. Just like in the UK, the Italian banks will always want to secure their Italian mortgage by having a first charge over the property.

More Italian mortgage information