Property in Rome: the purchase procedure and taxes

Needless to say, Rome is an extraordinary city, it is truly one of the world’s most amazing destinations, making it an excellent market to invest in. What’s the purchase procedure of real estate in Rome?

Italian legal requirements & purchase procedure

Irrevocable Purchase Proposal (usually 5%-10%). This is a non-refundable deposit (caparra confirmatoria) that serves as insurance to both the buyer and the seller. Once paid, the buyer and seller are committing to the purchase. If the buyer decides against the acquisition of the property in Rome, this sum will be forfeited to the seller. However, if the seller decides not to sell, he must pay twice the amount of the deposit to the buyer.

Preliminary Contract. This is necessary for the buyer to receive a fiscal code (Codice Fiscale), which is subsequently used to open a bank account. This contract adds 20%-25% of the property price to the deposit.

Final Act of Sale (Rogito). This is signed in the presence of an Italian notary, who represents the Italian government. He regulates all the taxes on that property. The original contract is held by the notary, he is only authorized to give out certified copies of this act. On the day of the final contract, both the buyer and the seller receive a certified copy which serves as an ownership certificate to the buyer.

Upon signing the final contract, you will officially be the new owner of the property and therefore receive the keys to your new dream home in Rome. You will then receive the official ownership papers within three weeks’ time.

It is also common to purchase property in Rome that is not yet constructed. This is a completely secure endeavor, due to the law that every construction firm is obliged to fulfill its work to the government.

Taxes when buying a home in Rome

Buying from a private seller (or a company selling without VAT)

• Second home: registration tax 9% of the cadastral value, mortgage tax €50, cadastral tax €50
• Main home (prima casa benefits): registration tax 2% of the cadastral value (minimum €1,000), mortgage tax €50, cadastral tax €50

Buying from a company selling with VAT (usually a developer)

• Second home: VAT 10% (22% for luxury categories A/1, A/8 and A/9), plus registration, mortgage and cadastral tax of €200 each
• Main home (prima casa benefits): VAT 4%, plus registration, mortgage and cadastral tax of €200 each

Prima casa benefits require, among other conditions, moving your residence to the municipality within 18 months, and do not apply to categories A/1, A/8 and A/9.
Notary Services can vary upwards of €3,000.
At Trevi Elite the agency fee for residential property is 5% under €500,000, 4% from €500,000 to €3 million and 3% over €3 million, plus VAT, paid 50% at the preliminary contract and 50% at the deed. The Trevi Elite Real Estate Agency is completely responsible for the ethics concerning the act of sale and acquisition and has an insurance policy in accordance with the law. We also provide after-sale services to our clients.