Real estate commissions in Italy: who pays what

When buying or selling property in Italy, one of the most common questions is about real estate commissions. Understanding who pays them and how much they cost is essential for budgeting your property transaction and avoiding surprises.

What are real estate commissions in Italy?

In Italy, real estate commissions (or provvigioni) are fees charged by real estate agents for facilitating the sale or purchase of a property. These commissions are usually a percentage of the final property price and are agreed upon in the contract between the agent and the client.

Unlike some countries where the seller traditionally pays the agent, in Italy, the commission can be paid by the buyer, the seller, or both, depending on the circumstances and agreements made.

Who typically pays the real estate commission?

1. Seller-Paid Commission
   Most commonly, the seller is responsible for paying the agent’s commission. This usually happens when the agent is hired exclusively to sell the property. The agent’s fee is deducted from the sale proceeds at completion.
2. Buyer-Paid Commission
   In some cases, especially when the agent is representing the buyer, the buyer may pay the commission. This arrangement is more common in high-demand areas or for luxury properties.
3. Split Commission
   Often, the commission is shared between buyer and seller, especially when both parties use the services of an agent. This split is agreed upon in advance and clearly outlined in the contracts.

How much are real estate commissions in Italy?

The standard real estate commission in Italy typically ranges from 2% to 4% of the property price, plus VAT (usually 22%). However, the percentage can vary depending on the region, property type, and agent’s reputation.

• Residential properties: 3%–4% of the sale price is common.
• Luxury or high-end properties: Commissions may be slightly lower or negotiable.
• Commercial properties: Can range from 2% to 5%, depending on complexity.

It’s important to note that the commission is negotiable, and it’s wise to discuss it with your agent before signing any agreements.

When is the commission paid?

The commission is generally paid at the completion of the sale, when the property ownership is officially transferred. It is not customary to pay the agent upfront, although some agents may request a small retainer for exclusive services.

Tips for buyers and sellers

• Clarify who pays: Always ensure that the commission arrangement is clearly stated in the contract.
• Compare agents: Different agencies may offer different rates and services.
• Negotiate: Commissions are not fixed by law, so there is room to negotiate, especially for high-value properties.
• Check VAT inclusion: Ensure you know whether the quoted commission includes VAT.

Real estate commissions in Italy can seem complicated at first, but understanding who pays and how much will give you peace of mind and help you plan your property transaction effectively. Whether you are buying a charming apartment in Rome, a villa in Tuscany, or a coastal property in Sicily, knowing the rules about commissions will ensure a smoother, more transparent process.