Buying a home in Milan, the costs on top of the price
Taxes, notary, agency, mortgage. What to budget for beyond the agreed price, and when each item is paid.
· by Giulia Ferrante · 2 min read
The price you agree with the seller is not what you pay. Before making an offer it helps to know which costs come on top, because some depend on choices made at the start.
Taxes
Buying from a private seller, you pay registration tax plus mortgage and land registry taxes. For a main home (prima casa) registration tax is 2% of the cadastral value, not of the price; for a second home it is 9%. Mortgage and land registry taxes are 50 euros each.
Buying from a company that builds or renovates, you pay VAT on the price: 4% for a main home, 10% otherwise, plus fixed registration, mortgage and land registry taxes.
The main-home relief has precise conditions (residence, no other home in the same town). The notary checks them before the deed.
The notary
The buyer chooses the notary and pays the fee. It depends on the value of the home and on whether there is a mortgage, which needs a second deed. Ask two offices for a written quote before the preliminary contract.
The agency
The commission is agreed in writing when you make the offer, and is due when the offer is accepted. VAT is added to it. With us the figure is in the offer you sign, with nothing added later.
The mortgage
The bank’s survey, an arrangement fee and building insurance. For a main home the substitute tax on the mortgage is 0.25% of the amount.
When you pay
With the offer you usually leave a cheque as a guarantee, which becomes the deposit once the offer is accepted. Another part is paid at the preliminary contract, the balance and the taxes at the deed; the notary pays the taxes on the buyer’s behalf.
Rates change with each budget law: always check the figures with your notary before you sign.