Step 1 — Codice Fiscale
The codice fiscale is Italy's tax identification number. Every foreign buyer needs one before any other step in the purchase process can proceed. It is obtained from the Italian tax authority — the Agenzia delle Entrate — and can be requested through the Italian consulate in the US or directly in Italy. The process takes one to two weeks and costs nothing. Your attorney handles this as the first step of engagement.
Step 2 — Proposta di Acquisto (Offer to Purchase)
The Italian purchase process typically begins with a formal written offer — the proposta di acquisto — accompanied by a small deposit of 1-2% of the purchase price. The seller has a fixed period, typically five to seven days, to accept or reject. The offer is binding on the buyer if accepted. This is not a casual expression of interest.
Step 3 — Compromesso (Preliminary Contract)
Upon acceptance of the offer, the parties enter the compromesso — a preliminary sale and purchase agreement that binds both parties to complete the transaction on agreed terms. The buyer typically pays a deposit of 10-20% of the purchase price at signing. If the buyer withdraws, the deposit is forfeited. If the seller withdraws, they must return double the deposit. Your attorney drafts and reviews this document. It is the most important document in the transaction.
"The compromesso is where the Italian buying process diverges most significantly from American practice. In Italy, signing the preliminary contract is a serious commitment — not a starting point for further negotiation. Understand what you are signing."
Step 4 — Rogito (Final Deed)
The rogito — the final notarial deed of sale — is signed before a notary in Italy, typically sixty to ninety days after the compromesso. Both buyer and seller must be present in person or represented by a power of attorney. The notary reads the deed aloud, both parties sign, the balance of the purchase price is transferred, and legal title passes. The notary then registers the transfer with the Land Registry within thirty days.
Transfer tax
Transfer tax on Italian residential property is calculated on the cadastral value — the Italian tax administration's assessed value, typically lower than market value. For a primary residence the rate is 2% of cadastral value. For a second home or investment property it is 9%. VAT applies instead of transfer tax on new-build properties from a developer. Your attorney will calculate the precise liability before signing.
The essential professionals
You need three professionals for an Italian purchase: a qualified Italian attorney to represent your interests and review all documentation; a geometra or structural engineer to assess the property's condition and identify any planning or structural issues; and a qualified translator if your Italian is not sufficient for full comprehension of legal documents. The notary represents neither party — they are a state official whose role is to ensure the transaction is legally valid.