The True Cost of Buying Property in Abruzzo

Beyond the Listing Price

Italian property purchases come with mandatory taxes, notary fees, agent commissions, and professional costs that together add 10 to 15 percent to the purchase price. For second homes (which is what most foreign buyers are purchasing), it is often closer to 12 to 15 percent.

Every Italian buyer knows these costs exist. Foreign buyers often discover them mid-transaction, when it is too late to renegotiate or walk away without losing deposits. Understanding the full cost before you start looking is not just useful. It determines whether the property you want is actually within your budget.

Taxes and Duties

Registration Tax (Imposta di Registro)

This is the main purchase tax. The rate depends on whether this will be your primary residence and whether you are buying from a private seller or a company.

The cadastral value matters: For resale properties (not new builds), taxes are calculated on the cadastral value (valore catastale), not the purchase price. The cadastral value is typically 30 to 60 percent lower than market price for older properties. This is legal and standard. It is one of the few things that works in the buyer's favour.

For example, a property selling for 80,000 euros might have a cadastral value of 40,000 euros. Your registration tax at 9 percent would be 3,600 euros, not 7,200 euros.

Fixed Taxes

In addition to registration tax, you pay two smaller fixed taxes:

• Mortgage tax (imposta ipotecaria): 50 euros for primary residence, or 2% of cadastral value for second home
• Cadastral tax (imposta catastale): 50 euros for primary residence, or 1% of cadastral value for second home

For new builds purchased from developers with VAT, both taxes are fixed at 200 euros each regardless of property type.

Prima Casa Requirements

To qualify for the lower 2% registration tax rate, you must:

• Establish residency in the property (or its municipality) within 18 months of purchase
• Not already own property in Italy purchased with prima casa benefits
• Actually use the property as your primary residence
• The property must not be classified as luxury (A/1, A/8, A/9)

If you claim prima casa benefits and then fail to meet these requirements, you will owe the difference in tax plus a 30% penalty plus interest. Do not claim it unless you genuinely intend to become resident.

Professional Fees

Notary (Notaio)

The notary is mandatory for all Italian property transactions. They verify the transaction is legal, ensure taxes are paid correctly, and register the transfer with the land registry. The buyer chooses and pays the notary.

• Typical range: 1 to 2.5% of the declared property value
• Plus 22% VAT on their fee
• Minimum fees often 2,000 to 3,000 euros regardless of property value
• Higher for complex transactions or properties with complications

Shop around: Notary fees are not fixed. Getting quotes from two or three notaries can save you several hundred euros. Just ensure you compare like for like, as some quotes include all administrative costs while others add them separately.

Lawyer (Avvocato)

Unlike in the UK, a lawyer is not mandatory for Italian property purchases. The notary handles the transaction. However, hiring an independent lawyer is strongly recommended, especially for foreign buyers who do not speak Italian fluently.

• Typical range: 1 to 2% of purchase price
• Plus 22% VAT
• Often 1,500 to 3,000 euros for a straightforward transaction
• More for complex situations or properties with legal issues

What a lawyer does that a notary does not: reviews contracts before you sign, conducts due diligence on your behalf, advises on issues the notary cannot (because the notary represents the state, not you), negotiates terms, and explains everything in your language.

Geometra (Technical Expert)

A geometra verifies the property's technical status: boundaries match the deed, buildings match the cadastral records, extensions have permits, and there are no major structural issues.

• Basic cadastral verification: 300 to 500 euros
• Full technical survey including structural assessment: 500 to 1,000 euros
• More for large or complex properties

In Abruzzo, where many properties are older and may have been modified informally over decades, a geometra survey is not optional. It is essential. Discovering unpermitted extensions after purchase means the problem is now yours to fix, often at significant cost.

Agent Commission

In Italy, both the buyer and the seller pay commission to the estate agent. This surprises many foreign buyers who expect only the seller to pay, as is common in other countries.

Example: On a 60,000 euro property with 3% commission plus VAT, you would pay 1,800 euros plus 396 euros VAT, totalling 2,196 euros. However, with a 3,000 euro minimum, you would actually pay 3,000 euros plus 660 euros VAT, totalling 3,660 euros.

Commission rates can sometimes be negotiated, particularly on higher-value properties. The minimum is harder to negotiate on lower-value purchases, as agents need to cover their costs.

Important: Commission is legally due when the agent has successfully facilitated an agreement between buyer and seller. In practice, this often means at the compromesso stage, not the final rogito. Check your agreement carefully.

Other Purchase Costs

Translation and Interpreter

If you do not speak Italian, Italian law requires a sworn interpreter to be present when you sign the final deed at the notary. This is not optional.

• Sworn interpreter at rogito: 250 to 400 euros
• Translation of contracts and documents: 300 to 600 euros
• Total translation costs: 500 to 1,000 euros

Administrative Costs

• Title searches and land registry documents: 100 to 200 euros
• Cadastral document updates: 100 to 200 euros
• Stamp duties and registration fees: 200 to 300 euros
• Codice fiscale application (if needed): 50 to 250 euros

Currency Exchange

If you are transferring funds from another currency, bank fees and exchange rate spreads can add 1 to 3 percent to your costs. Specialist currency transfer services like Wise typically offer better rates than traditional banks.

Worked Examples

These examples show realistic total costs for different scenarios. All assume purchase from a private seller (not a developer) and use typical Abruzzo fee levels.

Post-Purchase Costs

Your spending does not stop when you get the keys. Budget for these ongoing and one-time costs that come after purchase.

Annual Property Taxes

• IMU (property tax): 0.76 to 1.06% of cadastral value annually for second homes. Primary residences are exempt (except luxury properties).
• TARI (waste tax): Varies by municipality and property size. Typically 150 to 400 euros per year.
• Combined annual taxes: Budget 500 to 1,500 euros per year for a typical property.

Utility Setup

• Electricity connection or transfer: 50 to 150 euros
• Gas connection (if applicable): 50 to 150 euros
• Water connection: 50 to 100 euros
• Internet installation: 50 to 150 euros

Renovation and Repairs

If you are buying a property that needs work, factor in renovation costs. In Abruzzo, renovation typically costs 800 to 1,500 euros per square metre depending on scope. Budgets frequently double from initial estimates. If a builder quotes 30,000 euros, plan for 50,000 to 60,000 euros.

Insurance

Building insurance is not mandatory in Italy but is advisable. Contents insurance if you furnish the property. Budget 200 to 500 euros per year depending on property value and coverage.

Budgeting Properly

Here is how to approach your budget realistically:

1. Start with your total available funds, not the property price you want.
2. Deduct 15% for purchase costs (taxes, fees, professionals).
3. Deduct renovation budget if the property needs work.
4. Deduct a contingency of at least 10% for surprises.
5. The remainder is your maximum property purchase price.

This might feel conservative. It is meant to be. Buying property in a foreign country with a foreign language and foreign legal system carries risks. Having financial buffer is not paranoid. It is sensible.

Related Guides

• The Purchase Process Explained - understand each stage from proposta to rogito
• Due Diligence in Italy - what to check before you commit
• The Proposta Trap - why timing your offer wrong costs thousands
• Taxes and Finances - ongoing tax obligations and financial planning