Buying a home involves more than the agreed purchase price: a mix of taxes, the notary fee and additional charges determines the final outlay. This article explains how those items are calculated for purchases from private sellers and from builders, clarifies the first
home residency requirement, and offers concrete numerical examples so you can compare likely totals.
The explanations below reflect the commonly used rules and illustrative figures often applied by simulators and advisers. Technical terms are highlighted in bold and short definitions are shown in italics to help non-specialists.
What makes up the buyer’s bill
The final cost of buying includes three main groups: state taxes,
the notary’s remuneration and ancillary charges (for example, cadastral transfers, stamps and registry fees). For purchases between private parties, the taxable base is the cadastral value — that is calculated by taking the cadastral income, increasing it by 5% and then applying a coefficient: 115.5 for a first home and 126 for a second home.
When the seller is a construction company operating under VAT, the transaction is taxed on the declared sale price
with VAT (which can be 4%, 10% or 22% depending on the case). In that situation, registration, cadastral and mortgage taxes are generally fixed amounts rather than percentage-based.
Taxes, notary fees and typical amounts
Taxes to expect
The main levies are the registration tax, plus the cadastral and mortgage taxes. For private-to-private first home purchases the registration tax is usually 2% of the cadastral value (subject to a statutory minimum); for second homes it is 9%. The cadastral and mortgage taxes are often fixed sums (commonly around €50 each for purchases between private parties).
For purchases from a builder, buyers generally pay VAT at the applicable rate on the declared price and then fixed registration/cadastral/mortgage amounts (often around €200 each), plus the usual stamp duties and administrative fees.
How notary fees are set
The notary fee is not pre-set by law and depends on the complexity of the deed and the value of the property. A practical orientation often used is roughly 0.8% of the cadastral value for private sales and about 0.5% of the price for builder sales. Remember that the notary’s fee itself is subject to VAT 22% when applicable, and additional charges arise if a mortgage deed is also prepared.
Practical examples and how to read them
Numbers below illustrate typical orders of magnitude, including an estimated notary honorarium and VAT where appropriate. They are meant to help compare scenarios rather than to replace a personalized quote.
Example 1: first home bought from a private seller
Assume a cadastral income of €900 per year. After the 5% increase and the multiplier for a first home, the cadastral value becomes about €103,950. The registration tax at 2% equals €2,079; cadastral and mortgage taxes about €50 each. Adding administrative charges and an estimated notary fee of €832 plus VAT on the fee (22% = €183) gives a total near €3,232. This shows how the first-home relief sharply lowers the tax component compared with a second home.
Example 2: first home from a builder and a second home from a private seller
If the purchase price declared by a builder is €200,000 and the buyer qualifies for the first-home VAT rate, VAT 4% adds €8,000. Fixed registration/cadastral/mortgage charges of about €200 each, plus stamps and the notary’s honorarium, can bring the total to roughly €10,140. For a second home bought from a private seller with cadastral income of €1,200, the calculated value would be about €151,200 and registration tax at 9% amounts to €13,608; after notary fees and VAT the overall estimate is near €15,222.
Documents, timing and special rules
Typical documents for the deed include identity documents, tax code, the deed of title, cadastral survey and plan, the certificate of habitability (or APE), and the preliminary contract if present. For mortgage-backed purchases, the bank’s paperwork and a valuation report are also required. The drafting of the deed usually takes between 15 and 30 days from the notary appointment and the signature event often lasts 1–2 hours.
Unless differently agreed, the buyer normally pays the sale-related charges (referencing art. 1475 cod. civ.). Also note specific incentives and residency rules connected to the first home: to benefit from reduced taxes the buyer must take up residence in the municipality of the purchased property within 18 months. The residence may be anywhere in the municipality, not necessarily in the purchased flat. Failure to comply leads to loss of benefits, interest and a possible 30% penalty, although a voluntary correction procedure (ravvedimento operoso) can reduce sanctions. There are further nuances (for example exceptions when the buyer works or studies in the same municipality, rules when the buyer already owns another dwelling, and the five-year sale rule tied to benefit retention). Court clarifications such as Cassation order 5016/2026 confirm the need to either re-acquire a principal dwelling within 12 months or ensure the property becomes habitual residence to avoid benefit loss after an early sale.
Finally, some incentives aimed at young buyers changed recently: certain exemptions for under-36 buyers with ISEE under €40,000 expired on 31 December 2026 and were not renewed in 2026, while the Consap guarantee fund remains an option to increase mortgage coverage (up to 80% for eligible under-36 applicants, maximum guaranteed amount €250,000).