The buyer's costs: tax, notary and commission
Besides the price, the buyer bears the tax on the deed, the notary's fee and the agency commission. We set out the individual items, with the statutory rates and the cases in which a reduced rate applies.
Buying from a private seller: registration tax
This is the most common case. The rate is 2% where the purchase meets the first-home requirements, with a minimum of 1,000 euro, and 9% otherwise; mortgage and cadastral tax of 50 euro each are added. The rates are those of the Tariff attached to DPR 131/1986.
Between 2% and 9% lies the largest item after the price itself, and it depends on requirements that can fall away even after the deed. Go through them with the notary before signing, together with the deadlines by which they must be kept.
Buying from a developer: VAT
Where a building company sells within the statutory period, VAT applies to the deed: 4% with the first-home requirements and 10% otherwise, with a separate rate for luxury dwellings. Registration, mortgage and cadastral tax are then charged at a flat 200 euro each.
VAT is calculated on the declared price: the price-value rule described below applies only to purchases subject to registration tax. At the same price, therefore, buying from a developer and buying from a private seller do not cost the same.
The price-value rule
When buying a dwelling from a private seller you can ask for the tax to be calculated on the cadastral value rather than on the price paid: the cadastral income uplifted by 5% and multiplied by 110 for a first home, or by 120 otherwise. The rule is article 1, paragraph 497 of law 266/2005.
Since the cadastral value is generally below the market price, the reduction is significant. Two conditions apply: the request goes to the notary and into the deed, not afterwards; and the price must still be declared in full — the rule lowers the tax, it does not allow a figure other than the one paid.
The notary and the commission
The buyer chooses and pays the notary. Compulsory scales were abolished, so fees vary between practices and it is reasonable to ask for two or three quotes before deciding. When comparing them, bear in mind that much of what is paid to a notary is tax passed on to the State on your behalf, not fee.
The agency's commission falls due when the deal is concluded as a result of the introduction, under article 1755 of the civil code, and both parties owe it. Here too there are no compulsory scales: what applies is what was agreed, and it is best agreed in writing before the offer.
What can be claimed back
Two deductions apply to a large share of buyers. Interest on a loan taken to buy the main home is deductible at 19% on a maximum of 4,000 euro a year; the commission paid to the agency is deductible at 19% on a maximum of 1,000 euro, once only.
Both require an invoice in the name of the person claiming and a traceable payment. Ask for the invoice for the commission every time, and keep the receipts from the first payment onwards.
In short
- Establish whether the seller is a private individual or a company
- Go through the first-home requirements with the notary before the deed
- Ask for the price-value rule and have it written into the deed
- Collect two or three notary quotes before choosing
- Agree the commission in writing before the offer
- Ask for the invoice for the commission, for the deduction
- Make payments by traceable means
Frequently asked questions
I already own a first home: can I buy another with the relief?
Yes, provided the earlier one is sold within two years of the new purchase. The limit was one year and was raised to two by the 2025 budget law (law 207/2024). If the sale does not take place within the period the relief is lost and the tax is recovered with penalty and interest.
By when must I move my residence?
Within eighteen months of the deed, to the municipality where the property is. You are not required to live there immediately; you are required to be registered as resident within the period. It is among the most common reasons for losing the relief and depends only on meeting the deadline.
Which homes are excluded from the first-home relief?
Those in cadastral categories A/1 (stately dwellings), A/8 (villas) and A/9 (castles and buildings of particular merit). What matters is not how fine the property seems or what it costs, but the cadastral category shown on the search. The check is quick and it makes a substantial difference to the tax.
Official sources
Note
This guide is general information written by an estate agency. It does not replace advice from a notary, an accountant or the surveyor handling the property. The rules cited are those in force at the date of publication.
Read next
Mortgage and timing: how long it actually takes
The timing of a purchase depends largely on the bank's underwriting. We set out the order of the steps, from the credit approval to the condition precedent to include in the offer.
Offer, deposit and preliminary contract: the buyer's protections
A purchase offer binds the person who signs it before any preliminary contract. We explain what each document provides, what function the deposit serves and what protections remain for the buyer.
Restricted housing: who may buy it and live in it
Part of the housing for sale in the province of Bolzano is subject to the residents' restriction. We set out what it involves, who may live in such a home and how it is checked before an offer is made.
Looking for a home in South Tyrol?
Tell us what you are looking for — area, size, budget, whether the dwelling has to be free of the residents' restriction. We will flag what comes in, often before it reaches the portals.
Explore the properties