Notary Costs on a Mortgage 2026: Home Purchase Fees and How to Save

Notary Costs on a Mortgage: What You Really Pay to Buy a Home

When you buy a home with a mortgage, notary costs are one of the heaviest expenses after the price of the property and the deposit. Between the fee, the duties and the taxes, an average purchase easily reaches €3,000-€7,000. Being able to estimate them in advance is essential in order to plan a realistic budget.

To simulate the loan instalment alongside these costs, start from our online mortgage payment calculator.

How Many Deeds Does a Purchase With a Mortgage Require

Buying a property with a mortgage requires two separate notarial deeds:

1. Deed of sale: transfers ownership of the property from the seller to the buyer
2. Mortgage deed: formalises the bank loan and registers the mortgage charge on the property

The two deeds can be signed at the same time (same day, same notary) or on separate occasions, but as a rule the bank releases the funds only once the deed of sale has been signed.

The Components of Notary Costs

1. The Notary Fee

The notary fee is the most variable and the most negotiable item. Since tariffs were liberalised, quotes can differ considerably from one practice to another. Typical ranges:

• Deed of sale: €1,500-€3,500 + 22% VAT
• Mortgage deed: €1,000-€2,500 + 22% VAT
• Total fee (sale + mortgage): €2,500-€6,000 + VAT

2. Purchase Taxes (Deed of Sale)

They vary depending on whether it is a main home or a second home:

Main Home (With Tax Relief)

• From a private seller: 2% registration tax on the revalued cadastral value (minimum €1,000)
• From a developer with VAT: 4% VAT on the price + a fixed €200 registration tax
• Mortgage and cadastral duties: €50 + €50 (fixed)

Second Home

• From a private seller: 9% registration tax on the cadastral value (minimum €1,000)
• From a developer: 10% VAT (or 22% for luxury properties) + €200 registration tax
• Mortgage and cadastral duties: €50 + €50 (fixed)

If the property is not bought but received as a gift, the deed is still a notarial one but the taxes follow different rules: see the guide to Italian gift tax to understand who pays and how much.

3. Taxes on the Mortgage

• Substitute tax on the mortgage: 0.25% for a main home, 2% for a second home, calculated on the amount released
• Mortgage registration duty: €35 (fixed)

A Concrete Example: a €200,000 Home With a €150,000 Mortgage

Scenario A: Main Home, Bought From a Private Seller

Estimated revalued cadastral value: €90,000

• Registration tax: 90,000 × 2% = €1,800
• Mortgage + cadastral duties: €100
• Substitute tax on the mortgage: 150,000 × 0.25% = €375
• Mortgage registration duty: €35
• Notary fee (sale + mortgage): €4,000 + 22% VAT = €4,880
• Total notary costs: ~€7,190

Scenario B: Second Home, Bought From a Private Seller

• Registration tax: 90,000 × 9% = €8,100
• Mortgage + cadastral duties: €100
• Substitute tax on the mortgage: 150,000 × 2% = €3,000
• Mortgage registration duty: €35
• Notary fee: €4,880
• Total notary costs: ~€16,115

The gap between a main home and a second home is almost €9,000 on a €200,000 purchase: the requirements for main-home tax relief are worth knowing in detail.

Requirements for Main-Home Tax Relief

• The property must not be a luxury one (cadastral category other than A/1, A/8, A/9)
• It must be located in the municipality where the buyer lives or works
• The buyer must not own other properties in the same municipality
• The buyer must not already have benefited from main-home relief on another property in Italy
• The buyer must transfer their residence to the municipality where the property is located within 18 months of the deed

Strategies to Cut Notary Costs

1. Compare Several Quotes

Notaries can charge fees that differ by as much as 30-40% for the same deeds. Ask for at least 3 detailed written quotes, showing clearly the split between the fee, the taxes and the disbursements.

2. Sign Both Deeds Together

Signing the sale and the mortgage on the same day with the same notary saves €200-€500 of duplicated administrative work. Some partner banks also offer discounts.

3. Make the Most of Bank Partnerships

Many banks work with partner notaries who offer fees discounted by 10-20% to the bank's own customers. Always ask the bank before you choose.

4. The Price-Value Rule

For purchases of residential property between private individuals, registration tax is calculated on the cadastral value and not on the sale price: this allows considerable savings, especially in municipalities where cadastral values are low.

5. Tax Deductions

Interest on a main-home mortgage is deductible at 19% up to €4,000 a year. Ancillary costs (the substitute tax, part of the notary fee) also fall within the deduction.

Common Mistakes to Avoid

• Going with the bank's notary by default: it is not always the best deal. You have the right to choose your own
• Not reading the detailed quote: always ask for the breakdown item by item
• Underestimating duties and taxes: taxes are not negotiable and often weigh more than the fee
• Forgetting the valuation: €200-€400 required by the bank, to be added to the costs
• Not counting VAT: 22% is charged on the notary fee

Extra Costs to Budget For

Beyond the notary, buying a home involves:

• Bank valuation: €200-€500
• Mortgage arrangement fee: 0.25-1% of the amount released
• Fire and explosion cover: €200-€400 a year
• Estate agency commission: 2-4% of the price + VAT (where an agency is involved)
• Any bank brokerage fee: 0.5-1%

FAQ

Is the VAT on the notary fee deductible?

Only if the purchase is instrumental to a profession or a business. For private main-home purchases, VAT is not deductible.

Do you choose the notary, or does the bank?

By law, the notary is chosen by the buyer. The bank may suggest a partner notary but cannot impose one.

How far ahead of the deed should you contact the notary?

At least 30-45 days ahead, to allow time for the land registry searches, the document checks and the drafting of the deeds.

Can notary costs be paid in instalments?

As a rule no: the notary and the taxes are settled at the signing. Some banks do, however, include the ancillary costs in the mortgage amount.

Conclusion

Notary costs for buying a home with a mortgage in 2026 range between €5,000 and €17,000 depending on whether it is a main or a second home, on the size of the mortgage and on the fee charged by the notary you choose. By comparing quotes and optimising the tax side, the saving can exceed €3,000.

Work out an affordable instalment with our free mortgage simulator, then add to your budget the notary costs estimated with this guide.