Mortgages In Italy - Fees

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Mortgage Fees in Italy

Check what legal costs and government taxes you are liable for before committing yourself. Italian bank fees vary but are typically around 1% of the mortgage amount. You should also allow around €500 for the mortgage valuation and stamp duty of 11% on urban property or 17% on agricultural land. There is also a charge for registering the lender’s interest with the land registry. If the vendor is a private individual, you must pay a further registration tax of 3-4% of the purchase price if you move in within 18 months, or 10% if you plan to use the property as a second home. If the vendor is a company, you must pay imposta sul valore aggiunto or VAT.

Completion must be formalised by a local Notary Public who draws up the sale deed, registers it with the land registry and pays all taxes and duties on your behalf. Once you receive your offer of mortgage in writing you must sign and return the papers to the lender dated the day you receive them. You will normally, then be able to complete on your purchase after a cooling-off period of around 10 days.

Don’t forget that if you do not plan on being in Italy for the completion, you MUST ensure you have a viable Power of Attorney in place, within good time.