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Real estate law

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Our services in the Italian real estate business

Property division and community dissolution, both in and out of court. Assistance in all legal and practical aspects of buying and selling real estate, from vacation homes to farms in the region’s most prestigious wine regions.

In Italy, the appointment of a notary for the notarization of a property purchase is required by law. The notary draws up the purchase contract and ensures that all formal legal requirements are met. However, it is highly recommended that you also consult a German-speaking lawyer – not only to overcome possible language barriers, but also to clarify legal issues, work out solutions and actively participate in the drafting of the purchase contract.

We will be happy to support you in applying for a mortgage loan in Italy and ensure that you have all the necessary documents for successful financing.

In Italy, it is customary to pay a deposit before signing the final purchase contract. This deposit is usually non-refundable if the buyer withdraws from the contract. This makes it all the more important to have the preliminary contract carefully checked before making a payment.

Sometimes special permits are required to purchase a property in Italy. This applies in particular if it is a historic property or a property in a nature reserve. Find out about any permits in advance to avoid possible delays in the purchase process.

An Italian tax number is required to buy a property in Italy. An Italian lawyer can take care of this for you and submit all the necessary documents.

Because many documents relating to the purchase of a property in Italy are written in Italian, it is essential to consult an experienced translator.

Italian real estate law

Italian real estate law differs from German law in several respects. If you are a foreigner looking to buy or sell a property in Italy, you should definitely seek advice from an experienced Italian lawyer.

When buying a property in Italy, the purchase is completed by a notarized deed, which the notary then enters in the relevant property register. In Germany, on the other hand, the purchase contract is followed by entry in the land register.

This notarized deed also has a different legal effect in Italy than the German purchase contract: ownership is transferred as soon as it is notarized, whereas in Germany you are only legally considered the owner after the entry in the land register.

As no priority notice of conveyance is required under Italian law, the purchase price is usually due immediately after notarization.

What do you need to consider when buying a property in Italy?

When buying real estate in Italy, you must above all keep an eye on the limitation periods. Claims arising from the purchase contract expire in Germany after three years, whereas in Italy they can be between two and ten years, depending on the reason for the claim. If you wish to transfer a property to family members or close relatives, additional permits may be required and the process can become complicated.

Property tax also requires special attention: property transfer tax in Italy is not based on the purchase price. The amount depends on factors such as the size of the property, the location, the year of construction and whether the buyer is registered in Italy.

In view of these differences, it is advisable to consult an experienced Italian lawyer – especially if you are a foreigner looking to buy or sell a property. He or she will obtain the necessary permits, draw up or check the contracts and guide you through the entire buying or selling process.

How high are the taxes for a house in Italy?

Taxes depend on the type of property, its value, and its use. Here is an overview of the most important taxes that must be considered when buying or owning property in Italy:

Registration Tax
If the seller is a private individual or if the sale is VAT-exempt, the buyer will have to pay, at the time of purchase, a registration tax of 9% on the cadastral value of the property, regardless of the consideration agreed upon and indicated in the deed of sale. If the purchase is made as a “first home,” the registration tax drops to 2%, unless the property is of particular value.
Value Added Tax (VAT)
It is an alternative to the registration tax and applies in cases where the seller is a business and the sale is subject to VAT. The VAT rate varies from 10% or 22% of the purchase price, depending on the type of property. Unlike the registration tax, the taxable base on which VAT is calculated is the transfer price stated in the deed of sale.
Mortgage tax and cadastral tax
Both are taxes due when purchasing a property. They usually range between € 50 (in the case of a sale subject to registration tax) and € 200 (in the case of a sale subject to VAT).
Municipal Property Tax (IMU)
The IMU is a local tax payable by the property owner to the municipality. The amount of the tax depends on factors such as the type, location, and year of construction of the property. Generally, the owner does not have to pay IMU if the property is used as his or her “first home,” except in the case of particularly valuable properties, where IMU is always due. The IMU rate is generally 0.76 percent of the cadastral value, but varies from municipality to municipality. It is calculated on the basis of the cadastral income of the property.
Inheritance Tax
It is levied by the state when property is inherited. Generally, the tax base for purposes of calculating the tax takes the cadastral value of the property as a reference, and the rate depends on the degree of relationship between the deceased and the heirs.

It is important to note that the exact tax rates and conditions may vary from municipality to municipality in Italy. It is therefore advisable to consult an experienced Italian lawyer to clarify specific questions about taxes and other legal aspects of buying real estate in Italy.

How high is the second home tax in Italy?

The basis is usually an annual tax based on the cadastral value of the property – the value determined by the state, which indicates the asset value of the property. The tax rate is usually between 0.2% and 1.5% of the cadastral value.

There are also municipality-specific exceptions. Some municipalities exempt vacation homes that are only used for a limited period of the year; others grant concessions for new buildings or properties that a company uses for business purposes.

You should therefore find out the exact tax rate and any exemptions from your local authority in good time. An experienced Italian lawyer can support you and clarify all questions regarding Italian tax law and second home tax.

How high is the property tax in Italy?

The property tax in Italy is called “Imposta Municipale Propria” (IMU). Similar to the secondary residence tax, the amount depends on factors such as the type of ownership and location of the property.

The basic rate is 0.76% of the cadastral value (valore catastale). However, each municipality can adjust this and set values between 0.2 % and 1.06 %. In addition, allowances or reductions are possible depending on the type and use of the property.

If you use the property as your main residence, the IMU is usually waived completely; luxury properties are often exempt from this.

As the exact amount of IMU varies from municipality to municipality, it is advisable to consult an experienced Italian lawyer to clarify all questions regarding property tax and other tax aspects.

How is the cadastral value calculated in Italy?

The cadastral value (valore catastale) is reviewed by the cadastral authority (Agenzia del Territorio) approximately every five years and adjusted if necessary.

It is based on a number of parameters – such as the age, size, location and features of the property – and is calculated individually for each building and each plot of land. The authority combines several key figures, including

Area of land and building
Type and age of the building
Location and quality of the property
Infrastructure and facilities in the surrounding area

The cadastral value serves as the assessment basis for various taxes and duties, including property tax (IMU), second home tax, inheritance tax and land transfer tax.

Please note that this value does not automatically correspond to the market value; supply and demand can result in the market value being higher or lower.

What types of purchase contracts can I encounter when buying real estate in Italy?

When buying a property in Italy, there are four main contract models to consider:

Preliminary contract (Preliminare di compravendita)
Here, the buyer and seller agree on key points in advance – such as the purchase price, payment modalities, deadlines for completion and conditions to be fulfilled. The preliminary contract defines the framework within which the subsequent main contract is to be concluded.
Purchase contract (Atto di compravendita)
This notarized final contract seals the transfer of ownership. In addition to a precise description of the property and boundaries, it also contains the final purchase price, terms of payment and the modalities of the transfer of ownership.
Preliminary purchase contract (Compromesso)
Legally more binding than the preliminary contract, the Compromesso already represents a final commitment. Withdrawal is only possible against payment of the penalty specified in the contract.
Purchase contract with purchase on plan (Contratto di vendita su progetto)
If a property under construction is purchased, this contract regulates, among other things, the price, payment stages, completion dates and the developer’s guarantees regarding quality and timely handover.

Check all points of the contract carefully and make sure that you understand and accept the terms before you sign. It is best to consult an experienced Italian lawyer who will ensure that all the necessary details are included and legally secured.

What documents are required for the notarization of an Italian property?

Copies of identity documents of all persons named in the contract
for private individuals: Proof of marital status
Italian tax numbers (codice fiscale) of all parties involved
Current cadastral extract (visura)
Official floor plan and site plan (planimertia catastale)
Purchase contract or proof of inheritance of the previous owner
Proof of mortgage charges and their cancelability upon payment of the purchase price
Confirmation that there are no property-related and personal tax arrears of the seller
For commercial real estate purchases: Notarized extract from the commercial register and shareholder resolution on the purchase/sale of real estate for Italian companies

For agricultural land:

Pre-emption waiver from tenants or direct neighbors.

If represented by an authorized representative:

Notarized power of attorney

For buildings:

Building permit (concessione edilizia); certificate of habitability (abitabilità); possible subsequent approval of a black building (sanatoria) including proof of payment of the fine; energy certificate (certificazione energetica)

For real estate:

Rental or lease agreements, insofar as the property is rented or leased

For building plots:

Bebaubarkeitsnachweis (land use certificate)

Customer testimonials

Our clients appreciate our reliability, professional competence and the personal commitment with which we represent their legal concerns.

Megan T.

Los Angeles, CA

"I bought a house on the Amalfi Coast and without Giorgio Masina's law firm I would have felt lost in the Italian legal system. They checked everything, negotiated and managed the whole process - absolutely professional and reliable."

Anna R.

from Berlin

"I wanted to buy a vacation property in Tuscany and had absolutely no idea about Italian real estate law. Thanks to the competent advice from the team, I felt safe and well represented - and the purchase went smoothly!"

Brian K.

San Francisco, CA

"As an investor, I needed legal support for the purchase of several vacation homes in northern Italy. Giorgio Masina's law firm took care of all the contracts, tax issues and due diligence. I was able to fully rely on their expertise."

Markus T.

from Munich

"I had legal problems with an inherited house in Italy. The Italian lawyer in Berlin took care of everything, communicated with the authorities and resolved the matter to my complete satisfaction. Highly recommended!"

Emily S.

New York, NY

"I inherited an apartment in Rome, but the bureaucracy was enormous. Giorgio Masina's law firm took care of everything for me - certificate of inheritance, transfer of ownership, property tax. I didn't even have to be there. It doesn't get any better than that."

Giulia S.

from Rome

"As an Italian who has lived in Berlin for years, I was happy to find a lawyer here who is familiar with both German and Italian real estate law. The dual expertise was worth its weight in gold!"

Peter L.

from Potsdam

“I contacted this law firm about a purchase contract for a property in Apulia. The check was thorough and all the documents were explained clearly. I always had the feeling that I was in good hands.”

Claudia M.

from Hamburg

“The legal advice was not only legally precise, but also human. Trust is particularly important when it comes to foreign real estate - and I had that from the very first conversation. A real stroke of luck!”