Buying property in Sardinia costs more than the figure shown in the listing. A foreign buyer should budget separately for purchase taxes, notarial fees, agency commission where payable, legal due diligence, technical checks, payment costs and the future cost of owning the property.
For a resale property bought from a private seller, the main purchase tax is often calculated on the cadastral value rather than the agreed price. For a new property sold under VAT, the tax may instead be calculated on the purchase price. The difference can materially change the final cost.
A sensible budget should not start with a generic statement that every Sardinia purchase costs “10% to 15% extra”. Some transactions may fall within that range, while others will not. The result depends on whether the property is a first home or second home, whether the seller is a private individual or developer, whether an agency is involved, the terms of the notarial quote, the property’s complexity and the buyer’s need for legal and technical review.
The listing price is the starting point of the budget, not the full cost of the purchase.
Short answer: how much extra should you budget to buy property in Sardinia?
A foreign buyer should normally prepare a transaction budget that includes four separate groups of costs:
- Purchase taxes
- Notarial and registration costs
- Agency commission, if payable
- Legal and technical due diligence before commitment
For many second-home purchases from a private seller, the buyer may face registration tax at 9% of the cadastral value, plus fixed mortgage and cadastral taxes. Where an agency charges the buyer a percentage fee, the commission and VAT on that fee can become one of the largest costs after tax. The notary’s fee, legal work, technical checks and fund-transfer costs should then be added separately.
A buyer purchasing a new-build from a developer may have a different result because VAT can apply to the actual sale price rather than registration tax on cadastral value.
The correct question is not, “What percentage should I add?” It is, “Which taxes and costs apply to this specific seller, property, contract and intended use?”
Why there is no single percentage for Sardinia purchase costs
A simple percentage is attractive because it appears easy to use. It can also be misleading.
A buyer purchasing a €300,000 resale apartment from a private individual may have a very different cost structure from a buyer purchasing a €300,000 newly built home from a developer. The first transaction may involve registration tax calculated by reference to the cadastral value. The second may involve VAT calculated on the actual price.
A buyer who qualifies for the Italian prima casa benefit may have different tax treatment from a buyer purchasing a second home or holiday property. Many international buyers in Sardinia are purchasing a second home, but foreign nationality alone does not determine the tax result.
A property with no agency involvement will have a different cost structure from a property sold through an agent charging a buyer-side commission. A straightforward apartment may require a more limited review than a coastal villa with a pool, guest annex, land, access road and major renovation plans.
The result is that two properties advertised at the same price can produce very different total acquisition budgets.
Before calculating the full cost, establish:
- Who is selling the property
- Whether the transaction is subject to registration tax or VAT
- Whether prima casa relief may apply
- The cadastral value and relevant property classification
- Whether an agency commission is due and on what terms
- The notarial quote and scope
- Whether legal due diligence is required
- Whether a technical survey or planning review is needed
- Whether funds will be transferred from another currency or country
- Whether the property has features that create additional legal or practical risk
What taxes apply when buying from a private seller?
When a residential property is purchased from a private seller, the transaction is commonly subject to registration tax rather than VAT.
For a buyer who qualifies for the prima casa benefit, registration tax is generally 2% of the relevant taxable value, subject to the applicable minimum tax. Mortgage and cadastral taxes are generally fixed at €50 each in this type of transaction.
For a buyer purchasing without prima casa relief, which may include many second-home and holiday-home acquisitions, registration tax is generally 9% of the relevant taxable value. Mortgage and cadastral taxes are generally fixed at €50 each.
The taxable value is often based on the property’s cadastral value rather than the agreed market price when the relevant conditions and election apply. The cadastral value is not the same thing as the listing price. It is calculated by applying statutory multipliers to cadastral income and may be materially lower or, in some cases, less different than a buyer expects.
This is why a buyer should not estimate tax by automatically applying 9% to the purchase price.
The property’s classification, the type of seller, the contract terms and the buyer’s circumstances all matter. The position should be confirmed with the notary and appropriate advisers before the buyer relies on a budget.
What is the prima casa benefit?
The prima casa benefit is often described as “first home” relief. That description can create confusion for foreign buyers because it is not simply a benefit for anyone buying their first Italian property.
Eligibility depends on several conditions, including the type of property, the buyer’s declarations, prior property ownership and requirements connected with the municipality where the property is located. A buyer may need to establish residence in the relevant municipality within the applicable period after purchase, subject to the precise legal requirements and circumstances.
A foreign buyer should not assume that a holiday home in Sardinia will qualify simply because it is their first property purchase in Italy.
The tax treatment should be reviewed before the offer and final deed. A mistaken assumption can affect the purchase budget and create future consequences.
What happens if you buy a new-build or developer property?
A new-build or developer sale can have a different tax structure from a resale purchase from a private seller.
Where the transaction is subject to VAT, the tax may generally be calculated on the sale price rather than on the cadastral value. The usual VAT rate may be 4% for a qualifying prima casa purchase and 10% for a standard non-luxury second-home purchase. Certain property classifications can attract a different VAT rate.
In a VAT transaction, registration, mortgage and cadastral taxes are generally fixed charges, commonly €200 each. The result can be a materially different acquisition cost from a resale purchase, especially where the agreed sale price is high relative to the property’s cadastral value.
A buyer considering a new apartment, newly completed villa or property sold directly by a developer should ask at an early stage:
- Is VAT included in the advertised price or added to it?
- Which VAT rate is expected to apply?
- Is the seller acting as a developer for the relevant transaction?
- Are there fixed registration, mortgage and cadastral taxes to add?
- Are there additional contract, warranty or completion issues to examine?
- Does the draft contract clearly state the tax treatment and price structure?
A new property may look simpler because it is recently built. That does not remove the need to review the seller, the documentation, the contractual protections and the property’s actual legal position.
How much do notary costs add to a Sardinia property purchase?
The notary is essential to the final transfer of Italian property. The buyer commonly bears the notarial costs, although the commercial allocation should always be confirmed in the transaction.
Notarial fees are not a single fixed percentage. They vary according to the value of the transaction, type of property, complexity, number of parties, mortgage involvement, corporate elements, documents required and the work needed to prepare and complete the deed.
The notary’s overall quote can include professional fees, VAT, registration taxes, land-registry costs and other disbursements. A buyer should ask for a clear breakdown rather than compare only one headline number.
This is especially useful for foreign buyers because “notary costs” may be used loosely to describe several different items. The professional fee paid to the notary is not the same thing as purchase tax. Registration, mortgage and cadastral taxes may be collected through the notary but remain taxes due in connection with the transaction.
The notary has an important independent public role in preparing and authenticating the final deed and managing registration and transcription formalities. The notary’s role is distinct from independent buyer-side legal advice before an offer or deposit.idealista+1
Do buyers pay estate agent commission in Sardinia?
Often, yes. A buyer should never assume that the seller alone pays the estate agent.
In Italy, an estate agent may receive commission from both parties where the legal and contractual conditions are met. The amount varies. It is often expressed as a percentage of the agreed price, with VAT added to the commission where applicable.
The buyer should ask for the agency terms in writing before making an offer. The relevant questions include:
- What percentage or fixed fee is payable by the buyer?
- Is VAT added to the commission?
- At what stage does commission become due?
- Is commission due when the offer is accepted, when the preliminary contract is signed or at the final deed?
- What happens if the transaction does not complete?
- Has the agent acted as intermediary for both buyer and seller?
- Are there separate charges for services beyond the ordinary agency role?
The commission clause should be considered alongside the offer and deposit terms. A buyer who focuses only on the property price can overlook that an accepted offer may also trigger a substantial agency obligation.
Agency commission is a transaction cost. It should be budgeted separately from tax and notarial fees.
What legal and technical costs should a buyer budget for?
Independent legal and technical work is not a statutory purchase tax. It is part of buying with informed protection rather than relying only on the seller’s documents, the estate agent’s summary or the final notarial process.
The appropriate level of work depends on the property.
A straightforward apartment may require a different scope from a villa with a pool, a home with a guest annex, a coastal property, a rural house with land, a property bought through an inheritance chain or a home that has been materially renovated.
A foreign buyer should consider legal assistance to examine title, registered burdens, ownership, property documents, planning issues, cadastral records, contract terms, deposits and conditions needed before commitment.
Full Legal Due Diligence for Property Buyers in Italy is particularly relevant where the buyer has identified a serious candidate property and needs an independent legal assessment before signing a binding offer or transferring substantial funds.
Technical input may also be needed where the buyer requires an on-site inspection, assessment of building condition, verification of works, renovation advice or engineering analysis. Govoni Law does not provide technical, architectural or engineering opinions. Where those issues arise, the buyer may need appropriately qualified professionals.
For buyers considering a property that appears to have alterations, extensions or undocumented features, Building without permits in Italy explains why legal and technical questions should be addressed before the buyer commits.
Professional checks are not an extra after the decision. They are part of making the decision properly.
What costs arise when money comes from abroad?
Foreign buyers should allow for the practical cost of bringing purchase funds to Italy.
Depending on the buyer’s home currency, the transaction may involve exchange-rate movement, bank charges, transfer fees, compliance checks, documentation requests and timing risk. These costs can be immaterial in one transaction and significant in another, particularly where the buyer is converting British pounds, US dollars, Swiss francs or another currency into euros.
The buyer should also be prepared to document the origin of funds where required by banks, notaries or other parties involved in the transaction. This is not merely an administrative issue. Delays in payment arrangements can affect contractual deadlines and completion planning.
For a detailed guide to source-of-funds checks and payment risks, read Buying Property in Italy With Funds From Abroad: Source of Funds, Bank Checks and Payment Risks.
Govoni Law does not provide foreign-exchange or banking services. Our role is to help the buyer understand the legal and contractual implications of payments, deposits and transaction timing.
What annual costs should you consider after buying?
The cost to buy property should be separated from the cost to own property.
A buyer may complete the purchase successfully but later discover that the annual ownership budget is more substantial than expected. The relevant costs depend on the home, municipality, use, condition and services required.
Potential recurring costs can include:
- IMU, where applicable
- Local waste charges
- Condominium charges for apartments and managed developments
- Insurance
- Utilities
- Routine maintenance
- Gardening, pool care and security for villas
- Repairs and reserves for future works
- Cleaning, caretaker or management arrangements where the owner is absent
- Travel to and from Sardinia
- Costs connected with lawful rental activity, if any
IMU is an Italian municipal property tax that may apply to second homes and other properties that do not qualify for the relevant primary-residence exemption. The applicable amount depends on the municipality, cadastral data, ownership structure and property characteristics.
A buyer should not include ordinary annual costs within the headline “closing cost” percentage. They are recurring ownership costs and should be budgeted separately, especially for a second home, villa or property that will be vacant for part of the year.
Example: how two Sardinia purchases can cost differently
Two foreign buyers each agree to buy a property in Sardinia for €400,000.
Buyer A purchases a resale apartment from a private seller. The buyer may be subject to registration tax calculated by reference to the cadastral value, subject to the applicable rules and declarations. The buyer must then add fixed mortgage and cadastral taxes, the notary’s quote, agency commission if due, legal review and any technical work required.
Buyer B purchases a new-build villa from a developer. The transaction may be subject to VAT calculated on the actual sale price. The buyer must add the applicable VAT, fixed registration-related taxes, the notary’s quote, agency commission if due, legal review and any technical assessment required.
The advertised price is identical. The total acquisition cost may not be.
This is why foreign buyers should request a transaction-specific estimate before treating a property as affordable.
What Govoni Law does and does not do
Govoni Law is an independent Italian law firm assisting foreign buyers with property purchases in Sardinia and throughout Italy.
We help clients understand the legal position of the property, documents, contractual structure, deposits, title, registered burdens and risks before they become contractually bound. We provide buyer-side legal advice, legal due diligence, review and negotiation of offers and preliminary contracts, and assistance with the legal aspects of a property transaction.
We do not act as a mortgage broker, foreign-exchange provider, tax adviser, accountant, estate agent, property manager, insurance adviser, architect or engineer. These are separate professional roles and may require appropriately qualified advisers.
Where a buyer has identified a specific property and needs an initial review before signing, the Before You Sign Brief for Foreign Buyers in Italy can provide a focused written legal assessment of the immediate risk, documents or proposed contract.
Checklist: how to budget before making an offer
Before making a binding offer on property in Sardinia, consider whether your budget includes:
- The agreed purchase price
- The correct expected tax route: registration tax or VAT
- Any potential prima casa eligibility and related conditions
- Fixed registration, mortgage and cadastral taxes where applicable
- A written notarial quote with a clear breakdown
- The buyer’s agency commission and VAT, if payable
- Legal due diligence and contract review
- Technical inspections or specialist reports where required
- Currency conversion, transfer charges and funds-transfer timing
- Deposit exposure and contractual consequences
- Initial repairs, furnishings and compliance works
- Annual ownership costs after completion
- A realistic contingency for issues identified during due diligence
Frequently asked questions
How much extra should I budget to buy property in Sardinia?
There is no reliable universal percentage. Your budget should include purchase taxes, notarial costs, agency commission if due, legal due diligence, technical work where required, payment costs and post-completion ownership costs. The total depends on the seller, tax treatment, property type and transaction structure.
Are property taxes in Sardinia different from the rest of Italy?
The principal purchase-tax framework is national and applies across Italy, including Sardinia. The relevant result depends on whether the transaction is subject to registration tax or VAT, whether prima casa relief applies and the specific property and seller.
Is registration tax calculated on the purchase price?
Not always. In many qualifying resale purchases from private sellers, registration tax may be calculated by reference to the cadastral value rather than the agreed market price. The precise conditions and calculation should be confirmed before completion.
How much is registration tax on a second home in Sardinia?
For many purchases from private sellers without prima casa relief, registration tax is generally 9% of the relevant taxable value, with fixed mortgage and cadastral taxes added. The taxable value may not be the same as the agreed price.
Do foreign buyers qualify for prima casa tax relief?
Foreign nationality does not automatically prevent access to prima casa relief, but eligibility depends on the legal conditions, the property and the buyer’s declarations. A second home or holiday home will not automatically qualify. This should be checked before the buyer relies on the lower tax rate.
Do buyers pay estate agent commission in Sardinia?
Often, yes. The terms vary and should be confirmed in writing. The buyer should check the commission percentage, VAT, payment trigger and consequences if the transaction does not complete before signing an offer.
What does the Italian notary charge?
Notarial costs vary according to the transaction value, complexity, documents, parties and work involved. Buyers should request a written quote that separates the notary’s professional fee from taxes, registration costs and other disbursements.
What costs are not included in the purchase price?
The purchase price may exclude taxes, notarial costs, agency commission, legal due diligence, technical surveys, exchange and bank charges, repairs, furnishings, utilities, insurance, annual property taxes and maintenance.
Do I need legal due diligence when buying property in Sardinia?
It is especially advisable where the property is high-value, coastal, rural, inherited, renovated, occupied, subject to condominium rules, sold with land or includes pools, annexes, terraces or other structures. Due diligence helps the buyer understand the property’s legal position before signing or transferring money.
Is IMU included in closing costs?
No. IMU is generally an annual municipal property tax that may apply after completion, particularly to second homes. It should be treated separately from one-off transaction costs.
If you are considering a property in Sardinia, contact Govoni Law before signing an offer or transferring a deposit. Send the property link, available documents and draft contract so we can assess the legal position and explain what should be reviewed before you become bound.
A clear purchase budget is not only about knowing what you will pay at closing. It is about understanding the legal and financial commitments you will carry after the keys are handed over.