You won't incur any costs while your Italian mortgage application is being processed other than the valuation fees (€285). The mortgage amount will be released by bank draft, minus the following fees:

• Application fee: 1.50% of the loan amount
• Buildings insurance: this varies according to the loan amount and term of repayment (see table below.)
• The building insurance is against fire and natural catastrophes. In event of a claim, the insurance company will pay the bank the outstanding mortgage balance. This insurance does not cover any contents and rebuilding costs of the property. The premium is paid in a lump sum:
  

Mortgage registration tax (“imposta sostitutiva”): 0.25% of the loan amount if you apply to be an Italian resident (first home), 2% of the loan amount for second home (non-Italian resident).

• “Pronto Cash” service: 0.15% of the loan amount, for the immediate release of funds (if required and for purchase only). Please note that the loan funds will be released to the Notary in the first instance and paid to the vendor or to the borrower only once the mortgage charge (“ipoteca”) has been registered.
• Completion fees (€110) and pre-first instalment interest to be paid with first payment.
• Administration fee of €5 will be added to every instalment

Other Costs to Consider

1. New properties - VAT or IVA (“imposta sul valore aggiunto”) – this is only payable for new properties and varies from 10% up to 20% for luxury homes. It is usually included in the price, but the customer should always check.

2. Re-sale properties: transfer taxes come to around 10%, comprising registration tax (7%), mortgage tax (2%) and land survey tax (1%). If the property is to be the main residence (i.e. customer moves in within 18 months and doesn’t move out of the area for five years), registration tax is reduced to 3% and the mortgage and land survey taxes reduced to nominal sum (around €129 each).

3. Notary fees - these also vary according to the declared value. Allow around 1% of the purchase price.

4. Solicitor’s fee – if the customer appoints a solicitor to act on their behalf they should allow 1-2% of the purchase price.

5. Estate agent's fees - usually between 1 and 3% of the purchase price, but they are negotiable and may be split between the buyer and seller. Properties are sometimes advertised with fees and VAT included. The customer should not assume anything though – they should always check with the agent and be prepared to barter.

6. Surveyor's fee – if the customer decides to use the services of a surveyor, the fee is usually around €500-€1,000.

7. Translation – if the customer needs someone to translate documents and conversations, their fees should be included in the customer’s budget. Please note that Barclays Bank PLC does not deal with translation of the mortgage contract, Power of Attorney and Notary fees, registration tax (“imposta di registro”) concerning the purchase and stamp duty. You must pay all these costs to your Notary directly

An example of the typical costs of buying a €150,000 home with a 80% mortgage of €120,000 in Italy is given below:

These figures should provide an idea how much the customer may need to find on top of the purchase price.