UNDERSTANDING REAL ESTATE AGENT COMMISSIONS IN ITALY: WHAT INTERNATIONAL BUYERS SHOULD NOW ?

Understanding Real Estate Agent Commissions in Italy: What International Buyers Should Know

When purchasing property in Italy — whether a historic villa in Tuscany, a luxury apartment in Rome, or a charming home in the Venetian countryside — understanding real estate agent commissions is essential. Many international buyers are surprised to learn that, unlike in some countries, both the buyer and the seller in Italy are typically responsible for paying a commission to their respective real estate agents.

Our foreign clients — from the US, UK, Australia, and beyond — who are navigating the Italian property market for the first time, frequently ask us: Do I have to pay a commission to the agent? and if so, how is the agent’s commission calculated, and when is it due?

Let’s clarify the key points.

1. When the Commission Is Due

In Italy, a real estate agent (in Italian, agente immobiliare) earns the right to a commission once a purchase proposal (proposta d’acquisto) is accepted by the seller.
However, in practice, it’s common — and advisable — to agree that the commission will be paid at the time of closing, when the final deed (rogito notarile) is signed. This timing ensures that payment is linked to the successful completion of the transaction.

2. Typical Commission Rates

Agent commissions in Italy usually range between 4% and 5% of the property’s purchase price, plus 22% VAT (IVA).
The exact rate depends on your agreement with the agent and on the property’s location and value. High-end properties in sought-after areas (Rome, Venice, Florence, Lake Como, Amalfi Coast) often fall within the upper range.

3. Negotiating the Commission

Before signing any engagement letter or offer, it’s essential to clarify:

• The exact percentage of the commission;
• When it will accrue and when it will be paid;
• Whether one or multiple agents are involved, and how the commission will be split.

Negotiating these points upfront prevents misunderstandings and ensures transparency throughout the process.

4. Payment Methods and Compliance

All payments of commissions must be traceable, typically made via bank transfer. Italian law prohibits large cash payments (currently above €5,000).
This not only protects both parties but also ensures full compliance with Italian anti-money-laundering regulations.

5. Local Guidelines and Best Practices

Each Italian Chamber of Commerce (Camera di Commercio) publishes indicative rates for real estate commissions in its region.
These are not binding, but they offer a helpful benchmark to understand what’s customary in the local market — whether you’re buying in Milan, Rome, or Sicily.

Why It Matters

In Italy, clarity on agent commissions is crucial for avoiding disputes and budgeting correctly for your investment.
Upon our clients’ request, we review agent agreements, confirm the commission structure, and ensure that payments are correctly documented. This step is particularly important for foreign buyers, who may be used to very different practices in their home countries.

Final Thoughts

Buying property in Italy can be an exciting and rewarding experience — especially when you understand the nuances of the process.
Agent commissions are just one of the many details that can impact your transaction, but with the right legal and practical guidance, they’re easy to manage.

For personalized legal assistance in navigating your property purchase or investment in Italy, contact us cbortolani@aliantlaw.com or ecerin@aliantlaw.com so we can assist you in purchasing, restoring, and managing your property in Italy with full legal protection and peace of mind.