Money saving tips for buyers in Italy

You can own a home in Italy for surprisingly little money. There are ready-to-move-into homes available, if not for one euro, then certainly for little over €20,000.

There are certain fees that come with buying a property in Italy that are simply unavoidable, but again, these are not excessive.

However, in an unfamiliar market, it’s easy to pay more than you need to for an Italian property. Read some tips to help you get a fair price.

Taxes, notary and legal fees 

There are a few professional fees you’ll have to pay when buying a property in Italy. Most are fixed, but some vary slightly depending on where you’re buying or the depth of service.

The main professional fees you’ll have to consider are:

• Notary fees (notaio): Italian notary fees depend on the specifications of the transaction and the rates applied by the notary. For a standard property purchase, the fee is typically set based on a sliding scale related to the property sale price. Budget for a rough guide price of €1,500–€3,000 or 1–2.5% of the property value.
• Estate agent (agente immobiliare): Both the buyer and the seller pay a commission to the estate agent. They usually charge 3% of the purchase price plus VAT (22%). The commission is usually due to the agent as soon as the purchase offer is accepted. However, you can negotiate on their commission and when it is paid. Most will accept payment on completion.
• Property lawyer (avvocato): Legal fees aren’t fixed and depend on the depth of service, the seniority of the lawyer involved and the time spent working on your case. It’s worth asking your lawyer early-on for cost estimates, however, be aware that legal due diligence could unearth something that may require further intervention.
• Translator (traduttore) (if applicable): Cost of the translator who is present on the day of signing to translate the deeds into your own language before you sign it. This may not be necessary depending on your own and others’ language skills. Approximate cost between €250 – €350.

Savings on Italian property

Buying a lower priced property in Italy is one way to save money on the property purchase and associated fees.

Dwindling population incentives

There are a number of schemes designed to boost population numbers in rural Italy which offer cash incentives for buyers who purchase a property to use as their primary residence. For example, Presicce Acquarica offers up to €30,000 for new residents.

One-euro homes

There’s also the popular one-euro home scheme. What a lot of people don’t realise is that the low property price considers the amount of work (and associated costs) needed to bring the property back to working order. This you will have to pay out of your own pocket on top of the purchase price.  If you’re buying an older property or a home in a historic setting, you’ll have to consider any planning restrictions too.

Buying an older home in Italy? Discover potential pitfalls and how to avoid them

Buying off plan

Buying an off-plan property can sometimes be cheaper for early investors as the developer or builder will likely be looking for money to fund the project. However you may be waiting up to 24 months for the property to be built and useable. The same goes for homes in need of repair. They can save you money up-front by paying less upfront and paying more in renovation costs later down the line.

Southern villages offering a flat-tax rate

There are a number of villages in southern Italy with populations under 20,000 that offer a 7% flat tax rate for those who become a resident there. Find out more about the incentive here.

If these are not viable options for you, ask yourself, what can I live without? For example, if you don’t really need to be within walking distance of the beach, you can save a ton by buying slightly further inland. If retiring to Italy full time, you may not need to be as close to an airport as holiday-home owners or investors might – these are all things to consider and to talk to your estate agent about.

Negotiation tips

When buying property in Italy, negotiation is key. Here are some tips to help you get the best deal:

• Research market prices: Understand the average property prices in the area you’re interested in. This knowledge will give you a strong position when negotiating.
• Be prepared to walk away: A little nonchalance never hurt anyone. Show that you are willing to walk away if the price isn’t right. This can often lead to the seller reconsidering their offer.
• Use a local agent: A local real estate agent can provide valuable insights and help you negotiate better deals.

Hungry for more tips? Download your copy of our handy guide to negotiating your property price

Manage your currency risk effectively

Exchange rates fluctuate not just daily but every minute, thus impacting how much you’ll pay in your local currency for an Italian property in euros. While the agreed price with the vendor remains constant, the amount you’ll pay can vary significantly due to ever-fluctuating exchange rates influenced by global events, economic data releases and politics.

Banks often lack the advanced financial tools that currency specialists offer for large transactions. We recommend Smart Currency Exchange. Only a currency specialist can offer a forward contract, which allows you to lock in an exchange rate for a period of time, ensuring you know the exact amount you’ll pay.

Although exchange rates may shift in your favour, it’s a risky bet. However, without a forward contract, you’ll be exposed should the rates move against you, and you might find the property you wanted out of your price range. Choosing the right currency product can help you save time, effort and money.

Don’t gamble with your savings: Speak to a trusted currency specialist today