Mortgage Guidance in Italy


Closing costs associated with a mortgage in Italy can vary based on factors such as the property type, location, and the specific terms of the mortgage agreement. Here are some common closing costs that borrowers may encounter when finalising a mortgage in Italy:

Notary Fees (Spese Notarili)

Notary fees in Italy can be a significant part of closing costs. They cover the notary’s services, including the legal aspects of the property transaction. Notary fees are typically calculated on a sliding scale based on the property’s purchase price.

Land Registry Fees (Imposta Catastale)

These fees cover the registration of the property in the public land registry. Like notary fees, they are calculated based on the property’s purchase price.

Value Added Tax (VAT – Imposta sul Valore Aggiunto)

For newly constructed properties, Value Added Tax may be applicable. The VAT rate is typically 10% or 22%, depending on the property type and location.

Mortgage Registration Tax (Imposta Ipotecaria)

If a mortgage is registered on the property, there may be a mortgage registration tax. This tax is calculated based on the mortgage amount.

Agency Fees (Spese di Mediazione)

If a real estate agent is involved in the transaction, agency fees may apply. These fees are typically paid by the buyer and can vary depending on the agent and the region.

Bank Fees (Spese Istituto di Credito)

Some banks may charge fees related to the mortgage, including loan arrangement fees and other administrative charges.

Surveyor’s Fees (Perizia Tecnica)

In some cases, especially for older properties, a surveyor’s report may be required. Surveyor’s fees are additional costs that buyers need to consider.

Legal Fees (Spese Legali)

While notary fees cover certain legal aspects, buyers may also incur legal fees if they choose to hire a lawyer for additional legal assistance.

Translator Fees (Spese di Traduzione)

If documents need to be translated, translator fees may apply, especially for non-Italian speakers.

It’s important for buyers to carefully review the terms and conditions of their mortgage agreement and consult with professionals, such as notaries and legal advisors, to understand the specific closing costs associated with their transaction. Additionally, closing costs can vary by region, so it’s advisable to obtain localised and up-to-date information.