Buying a New Build Property: Everything You Need to Know Beyond the Purchase Price

1. VAT: The First Major Advantage (or Cost)

As correctly noted, VAT (IVA) is calculated on the purchase price stated in the deed of sale (rogito).

• Primary Residence (First Home): Taxed at 4%. On a €200,000 purchase, the tax will be €8,000.

• Second Home: Taxed at 10%. On a €200,000 purchase, the tax rises to €20,000.

Unlike buying from a private seller (where you pay registration tax on the cadastral value), in a new build, the tax is paid on the actual sale price.

2. Utility Connections and Cadastral Registration: The "Hidden Costs"

These charges are often the buyer's responsibility and are requested by the builder separately from the home price.

• Utility Connections: These cover the costs of connecting the property to public grids (water, electricity, gas, sewage). Costs vary by municipality and site complexity but usually range between €1,500 and €3,500.

• Cadastral Registration (Accatastamenti): Technical fees for registering the property in the urban land registry and creating official floor plans. The average cost is between €500 and €1,500.

Domus Sicilia Tip: Always check the preliminary contract (compromesso) to see if these costs are listed as "the buyer's responsibility" or if they are included in the price.

3. Fixed Taxes

When purchasing from a builder subject to VAT, you must add three fixed taxes paid at the time of the deed through the notary:

• Registration Tax: €200

• Mortgage Tax: €200

• Cadastral Tax: €200

  (Total: €600)

4. Notary Fees

The notary is an essential figure. Keep in mind that fees for a new build may be slightly higher than for a resale, as the notary must verify a larger volume of technical documents and guarantees (surety bonds, 10-year post-construction insurance policies).

Practical Example: €200,000 Purchase (Primary Residence)

Here is a summary of the costs to give you a clear idea of the total outlay:

Expense ItemEstimated AmountProperty Price€200,000VAT (4%)€8,000Fixed Taxes (Registration, Mortgage, Cadastral)€600Connections and Registration (Estimate)€3,000Notary Fee (Average Estimate)€2,500TOTAL INVESTMENT€214,100

Why is it still a good deal?

Despite these expenses, a new build offers protections that a resale does not:

• 10-Year Post-Construction Insurance: The builder is legally required to guarantee the property for 10 years against major structural defects.

• Surety Bond (Fideiussione): All down payments made before the final deed are guaranteed by a bank or insurance surety bond.

• Energy Class A: You will save thousands of euros in utility bills every year, offsetting the initial costs over time.

At Domus Sicilia Immobiliare, we analyze every technical specification (capitolato) and contract clause with you to ensure your purchase is 100% transparent.