From Tuscan farmhouses to Lake Como villas, Puglian trulli to Milan apartments, Italy continues to draw UK buyers searching for la dolce vita. But the Italian property purchase process is unlike anything in the UK — a binding commitment comes much earlier, the deposits are larger, and the role of the notaio (notary) is central. And running through all of it is the currency transfer, which on a typical purchase can be one of the largest single costs of the entire transaction.
The Italian process takes 60–90 days from the compromesso (preliminary contract) to the rogito (completion). During that window, the GBP/EUR exchange rate can move 3–5% — adding tens of thousands of pounds to your cost. On a €400,000 property, a 3% swing is over £10,000. Add a bank’s exchange rate markup on top, and the avoidable costs mount quickly.
This guide walks you through the Italian purchase process from a currency perspective: where the exchange rate risk sits at each stage, the taxes and costs to budget for, the codice fiscale requirement, and how to protect your budget from proposta to rogito.
The Italian Property Purchase Process: Where Currency Risk Sits
Italy’s purchase process commits you earlier than in the UK — there’s no equivalent of the English “subject to contract” period where either side can walk away freely. Once you sign the proposta d’acquisto and it’s accepted, or sign the compromesso, you’re legally bound. Here’s how it works and where the FX risk sits:
| Stage | Typical Timing | What Happens | Currency Exposure | How to Protect |
| Proposta d’acquisto | Day 1 | Formal purchase proposal. Small deposit (€2,000–€10,000). Once accepted, you’re committed. | Begins immediately — price agreed in EUR | Lock forward contract as soon as offer is accepted |
| Codice fiscale | 1–2 weeks | Italian tax code obtained — required before compromesso, bank account, or completion. | Rate moving during admin | Forward already in place |
| Compromesso | 2–4 weeks | Preliminary contract signed. Caparra deposit of 10–30% paid. Registered with Agenzia delle Entrate. | Large deposit (10–30%) exposed early | Draw deposit from forward at locked rate |
| Due diligence | 4–8 weeks | Lawyer verifies title, cadastral records, planning compliance. Mortgage secured if needed. | Extended exposure window | Forward holds your rate |
| Rogito (completion) | 60–90 days from compromesso | Final deed signed before the notaio. Balance + taxes paid via notary escrow. Ownership transfers. | 3% swing on €400k = £10,400 vs locked rate | Transfer at locked rate |
Note: Timelines are typical for resale (existing) properties. New-build and off-plan purchases follow different payment schedules.
The early commitment matters for FX
Because Italian purchases become binding so early — often at the proposta stage — you have less time to organise your currency strategy than in countries with longer cooling-off periods. The compromesso deposit (caparra) of 10–30% follows within weeks, putting a significant sum at exchange rate risk early in the process.
The caparra also has a specific legal nature. A caparra confirmatoria means that if you withdraw, you lose the deposit; if the seller withdraws, they must pay you double. This makes pre-contract due diligence — and locking in your currency rate — essential before you sign anything. A forward contract secured at the proposta stage protects both your deposit and your balance at a single known rate.
Italian Property Taxes and Costs: What to Budget
Registration tax (Imposta di Registro)
This is the main transfer tax and the largest purchase cost beyond the property price. The rate depends on your residency status and whether it’s your primary home:
- Non-resident / second home (resale): 9% of the cadastral value (valore catastale), not the purchase price — which is usually significantly lower thanks to the “prezzo-valore” rule.
- Prima casa (primary residence, resale): 2% of the cadastral value — a major saving, available if you become an Italian resident within 18 months.
- New build from a developer: VAT (IVA) at 10% (or 22% for luxury properties), replacing the registration tax. Fixed cadastral and mortgage taxes of €200 each apply.
The prezzo-valore advantage
Italy’s “prezzo-valore” (price-value) rule is a significant benefit for resale buyers. It allows registration tax to be calculated on the property’s cadastral value — typically much lower than the actual purchase price — rather than on what you actually pay. This can substantially reduce your tax bill. Your notaio will calculate the exact figure.
Other costs
- Notaio fees: Around 1% of the purchase price (higher for lower-value properties). The notaio is a neutral public officer, not your representative.
- Estate agent: Typically 3% + VAT, paid by the buyer at the compromesso stage (the seller usually pays a similar amount).
- Lawyer / geometra: A property lawyer (avvocato) and surveyor (geometra) are strongly recommended — typically 1–2% combined.
- Cadastral + mortgage tax: Fixed fees, usually €50–€200 each for resale properties.
Total purchase costs at a glance
| Cost Element | €250,000 (2nd home) | €400,000 (2nd home) | €600,000 (2nd home) |
| Registration tax (9% on cadastral value) | ~€13,500–€22,500 | ~€21,600–€36,000 | ~€32,400–€54,000 |
| Notaio fees (~1%) | €2,500–€3,500 | €4,000–€5,000 | €6,000–€7,000 |
| Estate agent (3% + VAT) | €9,150 | €14,640 | €21,960 |
| Lawyer / geometra fees | €3,000–€6,000 | €4,000–€8,000 | €6,000–€12,000 |
| Cadastral + mortgage tax (fixed) | €100 | €100 | €100 |
| FX saving: specialist vs bank (2.2%) | ~£4,800 | ~£7,700 | ~£11,600 |
Note: Registration tax shown as a range because it’s calculated on cadastral value (typically lower than purchase price). Figures are illustrative and will vary by property and region.
The green row shows the FX saving from using Lucid instead of a bank. On a €400,000 property, that’s approximately £7,700 — a meaningful chunk of your total purchase costs.
The Codice Fiscale: Your Essential First Step
Before you can sign the compromesso, open an Italian bank account, or complete the purchase, you need a codice fiscale — the Italian tax identification number. It works much like a National Insurance number, uniquely identifying you in all financial, legal, and administrative matters.
You can obtain a codice fiscale from an Italian consulate in the UK, or through your lawyer in Italy via power of attorney. It’s free and usually takes 1–2 weeks. Importantly, having a codice fiscale doesn’t automatically create Italian tax obligations — those only arise if you become a resident or generate taxable income in Italy.
Many UK buyers use a power of attorney (procura) to let their Italian lawyer sign documents on their behalf — useful given the early binding commitment and the need to be physically present (or represented) at the rogito.
Completion (Rogito): Getting the Money There
The rogito is the final deed of sale, signed before the notaio 60–90 days after the compromesso. On completion:
- The balance is paid via the notaio’s escrow account. Italian notaries operate bonded client accounts, and it’s standard practice for the balance and taxes to flow through this account. Funds must arrive in euros before signing.
- Registration tax and notaio fees are paid at this point, calculated and forwarded to the authorities by the notaio.
- Both parties (or their representatives via power of attorney) must be present at the notaio’s office for the signing.
Timing is critical — funds must be in the notaio’s account before the signing date set in the compromesso. A specialist FX provider coordinates with the notaio to ensure euros arrive on time. Lucid routinely sends funds to Italian notary escrow accounts and works to the completion timeline. See our property FX service for details.
Tax Considerations for UK Buyers in Italy
Ongoing Italian taxes
- IMU (Imposta Municipale Unica): Annual property tax on second homes (primary residences are usually exempt unless luxury). Varies by comune.
- TARI: Waste collection tax, based on property size and occupants.
- Rental income tax: If you let the property, income is taxable in Italy. The cedolare secca flat-tax regime (21%) may apply to residential lets.
UK tax considerations
- Capital gains tax: If you sell UK assets to fund the purchase, UK CGT may apply on the gain. See gov.uk/capital-gains-tax.
- The transfer itself is not taxable — sending money to Italy doesn’t trigger a UK tax event.
Work with a tax adviser familiar with both UK and Italian systems. Lucid can coordinate the currency transfer timing with your tax adviser and notaio.
Why UK Buyers in Italy Use Lucid Foreign Exchange
Italy’s early binding commitment, large caparra deposits, and 60–90 day completion window make the currency transfer one of the most significant — and most time-sensitive — parts of the purchase. With Lucid you get:
- A dedicated dealer who understands the Italian process — proposta, compromesso, rogito — and coordinates with your notaio and lawyer.
- Forward contracts to lock in your rate from the proposta stage, protecting both the caparra and the balance.
- Transparent pricing — interbank rate plus our margin, shown separately. No hidden fees.
- Same-day SEPA transfers to Italian notary escrow accounts.
- Safeguarded funds held through our FCA-regulated partner.
For a walkthrough of forward contracts, read our forward contracts vs spot trades guide. If you’re also considering other countries, see our guides to buying in France and Portugal.
Frequently Asked Questions
How long does it take to buy property in Italy?
Typically 60–90 days from the compromesso (preliminary contract) to the rogito (final deed). The proposta d’acquisto and compromesso are usually signed within the first few weeks, followed by due diligence and completion at the notaio.
What deposit do I need to buy in Italy?
A small deposit (€2,000–€10,000) at the proposta stage, then a caparra of 10–30% of the purchase price at the compromesso. If you withdraw, you typically lose the caparra; if the seller withdraws, they must usually pay you double.
What’s the difference between the compromesso and the rogito?
The compromesso is the binding preliminary contract that sets the price, terms, and completion date, with the caparra deposit paid. The rogito is the final deed executed before the notaio, where you pay the balance and ownership transfers. Standard timing between them is 60–90 days.
Do I need a codice fiscale to buy property in Italy?
Yes. The codice fiscale (Italian tax code) is mandatory before signing the compromesso, opening a bank account, or completing. It’s free, takes 1–2 weeks, and can be obtained via an Italian consulate in the UK or through your lawyer.
Can I lock in my exchange rate for the whole purchase?
Yes. A forward contract locks in the GBP/EUR rate for up to 12 months — covering the entire Italian purchase timeline from proposta to rogito. You lock in early and transfer at that rate at completion, regardless of market movements.
Can Lucid send euros to an Italian notary?
Yes. We routinely send funds to Italian notary (notaio) escrow accounts. Your dealer coordinates timing with the notaio’s office to ensure funds arrive before the rogito signing date.
Buying in Italy? Talk to a Specialist
If you’re buying property in Italy and need to transfer £100,000 or more, a five-minute conversation with Lucid could save you thousands. We’ll give you a transparent rate quote, explain your forward contract options, and coordinate with your notaio from compromesso to rogito.
Get a free, no-obligation quote. Call us, email us, or book a consultation with our property FX team.
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