The Italian real estate process — how it actually works
The Italian property purchase system is notarial, not escrow-based. Every transaction closes before a government-appointed notary (notaio) who authenticates the deed and ensures taxes are paid. The notary does not represent either party — they are a public official. Their job is legal formality, not protecting your interests.
This is the single most important thing for American buyers to understand: you have no advocate in the room unless you bring one.
The purchase typically involves two contracts:
- Proposta d'acquisto — an initial offer, sometimes binding. Many buyers sign this without a lawyer. This is a mistake.
- Compromesso (contratto preliminare) — the binding preliminary contract, signed weeks before closing. Fixes price, terms, and closing date. A deposit of 10–30% is paid here. If you withdraw, you lose it.
- Rogito — the final notarial deed that transfers ownership. This is the closing.
Due diligence: what your lawyer checks
Italian property due diligence is more complex than most buyers expect. Issues that are routine in Italy — unpermitted renovations, cadastral mismatches, unresolved building permits — can make a property unsaleable or unmortgageable. A thorough due diligence by your lawyer covers:
- Title search — who legally owns the property, any restrictions on title
- Mortgage and lien search — any debts, charges, or encumbrances on the property
- Cadastral verification — the property as registered matches the physical property
- Urban planning compliance — building permits were obtained, renovations were authorized
- Certificate of habitability (agibilità) — the property is legally habitable
- Condominium dues — no outstanding debts from the previous owner (which pass to the buyer)
- Energy performance certificate (APE) — required for all transactions
- Heritage or environmental constraints — historic properties, coastal zones, protected areas
Step by step: the purchase process
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01
Get your Italian tax code (Codice Fiscale)
Required before any transaction. Your lawyer obtains it remotely from the Italian tax authority. Takes 1–3 days. No Italian presence required.
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02
Retain an independent lawyer — before the offer
Engage legal counsel before making any offer, not after. Once you sign a proposta d'acquisto, your negotiating position weakens significantly.
Our team can be engaged remotely. Initial consultation by email or video call. -
03
Negotiate and structure the offer
Your lawyer advises on purchase price negotiation, conditions precedent (subject to due diligence, subject to financing), and the terms of the initial offer.
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04
Conduct full property due diligence
2–4 weeks. Cadastral checks, title searches, building permits, urban planning compliance, condominium debts, heritage constraints.
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05
Sign the compromesso
Binding preliminary contract. Your lawyer reviews every clause before you sign. A 10–30% deposit is paid — structured as caparra confirmatoria (if seller pulls out, they owe you double).
This contract is the most critical document in the transaction. Never sign without legal review. -
06
Arrange payment and tax structuring
International wires to Italy require anti-money laundering compliance documentation. Your lawyer and tax advisor advise on the optimal ownership structure (individual name, Italian company, trust) based on your tax situation in both countries.
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07
Closing (Rogito) before the notary
The final deed transfer. You attend in person or grant power of attorney to your lawyer to sign on your behalf — standard for foreign buyers who cannot travel to Italy for closing.
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08
Post-closing registrations
Deed registration, tax payment, land registry update, utility transfers. Your lawyer handles all post-closing formalities.
Taxes: what Americans pay
Italian property taxes depend on whether you are buying from a private seller or a developer, and whether the property will be your primary residence (prima casa) or a second home.
| Tax | Primary Residence | Second Home / Investment |
|---|---|---|
| Registration Tax (from private seller) | 2% of cadastral value | 9% of cadastral value |
| VAT / IVA (from developer, new construction) | 4% of purchase price | 10% of purchase price |
| Mortgage Tax | €50 fixed | 2% of property value |
| Cadastral Tax | €50 fixed | 1% of property value |
| Notary fees | ~1–2% of purchase price (set by notary) | |
| Legal fees (galbiati.law) | ~1–2% of purchase price (fixed fee by agreement) | |
| Real estate agent commission | 2–4% per side (buyer and seller each pay) | |
The Prima Casa exemption
The reduced registration tax rate (2% instead of 9%) applies if the property will be your primary residence in Italy and you establish your residency there within 18 months of purchase. For most American buyers purchasing a vacation home or investment property, the 9% rate applies. The primary residence exemption is available to Italian non-residents under specific conditions — your lawyer will advise whether you qualify.
You do not need to travel to Italy to close
Foreign buyers frequently cannot travel to Italy for every stage of the transaction. Italian law allows the buyer to grant a power of attorney (procura speciale) to their lawyer to sign documents on their behalf — including the final deed. The power of attorney is notarized in the US (with apostille) and sent to Italy. galbiati.law handles these remote closings routinely for American clients.