Buying Your First Home in Italy: Everything You Need to Know

Defining the budget and requirements

The first step is to establish your available budget, considering any financing options (mortgage) and additional costs: notary fees, taxes, commissions, and renovation expenses if applicable. It’s also important to have a clear idea of your needs: square footage, location, number of rooms, nearby amenities, etc.

Verification of requirements for "First Home" benefits

Those buying their first home in Italy can access significant tax benefits, including:

• A reduced registration tax of 2% (instead of 9%)

• A reduced VAT rate of 4% (instead of 10%) for purchases from construction companies

• U36 Benefits: Until December 31, 2027, there is the possibility to access up to 80% of the so-called "First Home Mortgage Guarantee Fund" for singles or young couples under the age of 36, with a family ISEE (Equivalent Economic Situation Indicator) below the 40,000 euro threshold.

• Fixed cadastral and mortgage tax of 50€

The main requirements are: not owning other residential properties in the same municipality and not having previously benefited from first home tax benefits, except in specific cases of replacement.

Choosing the right property

Once the budget is defined and the main requirements (such as number of rooms, presence of outdoor spaces, desired location) are established, it’s time to begin the search for the ideal home. At this stage, it’s essential to take a rational approach and not be guided solely by emotions: a home may look aesthetically pleasing, but it’s important to also consider its long-term functionality, structural conditions, and potential maintenance or renovation costs.

Relying on a trusted real estate agency like Engel & Völkers provides access to a qualified selection of properties, often exclusive, with the guarantee of a thorough preliminary assessment regarding urban compliance, floor plans, system conditions, and energy certifications. The support of industry professionals helps save time, avoid risks related to discrepancies or building violations, and approach negotiations in a more calm and transparent manner.

Purchase proposal and preliminary agreement

Once the ideal property is identified, a written purchase proposal is submitted, which includes a binding financial offer accompanied by a deposit. If accepted by the seller, the next step is signing the preliminary agreement (compromesso), a document that clearly defines the terms of the deal: final price, notary date, condition of the property, any suspensive conditions, and penalties in case of non-compliance.

The preliminary agreement is very important because it legally protects both parties until the notary deed is signed. At this stage, it is essential to verify, even through a notary or consultant, that the property is free from mortgages, encumbrances, or building violations that could jeopardize the transaction.

Notary deed and key handover

The notary deed (rogito) is the final act that officially confirms the transfer of ownership. It is signed in the presence of a notary, an impartial figure who verifies all documentation, the property’s compliance, and the identities of the parties involved. During the deed, the final payment is made, and the due taxes (registration, mortgage, and cadastral) are paid.

Once the deed is signed, the notary handles the registration and transcription in the property registers, and the new owner can take possession of the property. In some cases, the handover of the keys happens immediately after the deed is signed, while in others, a later date is agreed upon. It is important to clarify this aspect in the contract stage to avoid misunderstandings.

Conclusion

In summary, this guide to buying your first home in Italy helps you navigate every step, from setting the initial budget to signing the notary deed. Engel & Völkers supports you with expertise, transparency, and tailored solutions to turn your dream of owning your first home into reality.