Buying Property in Italy as an Israeli: Codice Fiscale, the Preliminary Contract (Compromesso) and Signing Before the Notaio

A property purchase in Italy is built on two documents: a preliminary contract (contratto preliminare, also called compromesso), and the final deed of sale (rogito), signed before a notaio, a public notary. Ownership passes only when the final deed is signed. Before them you need an Italian tax number and a check of the reciprocity condition, and after them come registration and taxes. We go through the stages in order, from the perspective of an Israeli buyer.

1Can an Israeli buy property in Italy?

Yes. Under Italian law, a foreigner enjoys civil rights, including the purchase of real estate, “on condition of reciprocity” (Article 16 of the preliminary provisions to the Civil Code). The question, then, is whether an Italian may buy property in Israel. The notaio checks the condition before signing and may rely on information from the Italian Ministry of Foreign Affairs.

The reciprocity sheet that the Italian Ministry of Foreign Affairs publishes on Israel states that there are no legal restrictions in Israel on Italians buying land and buildings, except state land that is not sold to foreigners, and even then authorisation is granted in practice without difficulty. For an ordinary purchase of an apartment or a house, therefore, the condition is met. According to NotaiOnline, the check is not required at all for EU citizens, so Israelis who are also citizens of an EU member state buy like any European citizen.

2How do you obtain a codice fiscale while living in Israel?

The codice fiscale is the Italian tax identification number, and you need it already to register the preliminary contract, not only for the final signing. The application is made on form AA4/8 of the Italian Revenue Agency (Agenzia delle Entrate), with a copy of your passport.

It is important to choose the right route. According to the page of the Italian Embassy in Tel Aviv, anyone who needs a codice fiscale to buy property must authorise a representative, for example an estate agent or a notaio, to file the application on their behalf at a Revenue Agency office in Italy. Filing by email through the Embassy is intended, according to the same page, for Israeli residents who do not fall into categories such as a property purchase. The procedure may change, so check the current page before you start.

3Do you need an Italian bank account, and how do you pay?

According to NotaiOnline, an Italian bank account is not mandatory, but it makes ongoing payments easier, such as municipal taxes, electricity and service charges. What is mandatory is that payments be traceable: in the deed of sale the parties declare, in a sworn statement, the detailed method of payment of the price (Article 35(22) of Decree-Law 223/2006), and cash payments of EUR 5,000 or more are prohibited.

In practice, every payment, from the deposit to the balance of the price, should be made by a documented bank transfer. The Israeli bank is likely to ask about the purpose of the transfer and the source of funds, so prepare the preliminary contract and the source documents in advance, and plan for the money to be available on the day of the rogito.

4What is a purchase offer (proposta d'acquisto), and when is the agent paid?

In most deals through an agent, the first step is a written purchase offer on the agency's form. The offer is usually irrevocable for the period stated in it, and a deposit is attached. If the seller accepts it and the acceptance reaches you, a binding contract may already arise, even before a compromesso is signed. The offer is therefore not a “technical form”: it should already contain the conditions that matter to you, such as conditions relating to the checks, financing or the property's conformity with the registry.

Under Article 1755 of the Civil Code, the agent's commission is due on the “conclusion of the deal”. The Italian Supreme Court (Cassazione, order 7781/2020) held that a deal is concluded when a legal bond arises between the parties that allows each of them to sue for its performance, and that in the case before it, an offer not followed by the signing of a preliminary contract did not give rise to a right to commission. That said, many agents provide in their form that the commission is payable already on acceptance of the offer. Read the commission clause, its rate and the payment date before you sign.

According to the Italian Revenue Agency's guide, agents must register preliminary contracts signed as a result of their activity, as well as an acceptance of an offer that is sufficient to form a preliminary contract.

5What is the compromesso, and how binding is it?

The preliminary contract is a mutual undertaking by the seller and the buyer to sign the final contract of sale. It does not transfer ownership, but it is binding: if a party refuses to sign the final contract, the other party may ask the court for a judgment that takes the place of the unsigned contract (Article 2932 of the Civil Code), or use the remedies attached to the caparra. The contract must be in writing: a private document (scrittura privata), a private document with signatures authenticated by a notaio, or a notarial deed.

The contract sets, among other things, the price and the payment schedule, the amount and type of the caparra, the deadline for the rogito, conditions precedent such as obtaining a mortgage, the condition of the property on handover and the identity of the notaio.

6How soon must the preliminary contract be registered, and what does it cost?

Within 30 days of signing, with the Italian Revenue Agency. According to the Revenue Agency's official guide (March 2024 edition), the deadline was 20 days until Decree-Law 73/2022, and it was extended to 30 days. If the contract is made as a notarial deed, the notaio registers it within the same period. Older sources still mention 20 days, so pay attention to the date of every source.

The proportional tax paid on registering the preliminary contract is credited against the tax due on the deed of sale. If it exceeds that tax, a refund may be claimed within three years of registration of the final contract. When the sale is subject to VAT (IVA), for example a purchase from a developer, an advance is subject to VAT and the registration tax on it is fixed, but a caparra confirmatoria bears a 0.5% tax. Amounts according to the March 2024 edition of the guide. Verify them with the notaio as of October 2026.

7Caparra confirmatoria or caparra penitenziale: what is the difference?

The caparra confirmatoria (Article 1385 of the Civil Code) is the most common in real estate deals. If the party who paid it breaches the contract, the other party may terminate and keep the caparra. If the party who received it breaches, the other party may terminate and demand double. The injured party may also forgo this route and sue for performance or termination, in which case compensation is determined under the general rules.

The caparra penitenziale (Article 1386) is the price of a right of withdrawal granted in advance by the contract: whoever withdraws loses the caparra they paid, or returns double what they received, and that is the end of the matter. It gives flexibility, but weakens the ability to enforce the deal. Also check whether the amount was defined as a caparra or as an advance (acconto), which is not an agreed compensation mechanism and bears a higher registration tax.

8Should the preliminary contract be recorded in the land registry?

In many cases yes, especially when the period until the rogito is long or when a significant amount is paid up front. According to the Revenue Agency's guide, the preliminary contract creates only an obligation, so the seller could sell or mortgage the property, leaving you with only a damages claim. Recording the contract (trascrizione) in the land registry prevents this.

Under Article 2645-bis of the Civil Code, only a contract made as a notarial deed or with authenticated signatures can be recorded, so a notaio is needed. According to the official guide, the additional cost is a mortgage tax of EUR 200 and fees of EUR 35, on top of the registration tax and a EUR 155 stamp duty, plus the notaio's fee. The protection is limited in time: it lapses if the final contract is not recorded within one year of the date set for signing it, and in any case within three years of recording the preliminary contract.

9What should be checked before the rogito?

In short: that the seller is the registered owner, that there are no mortgages or attachments, that the property matches the registration, the catasto plan and the permits, and that there are no debts to the condominium. The notaio checks the registries, but does not inspect the property on site and does not assess the price. This is covered in detail in our guide on due diligence in Italy: catasto and urbanistica.

10What is the notaio's role, and who chooses the notaio?

The notaio holds a public office, and the role is to ensure that the deed is valid and that the information in it is correct, without representing either party. Before signing, the notaio checks the status of the property in the land registry and the catasto, identifies the parties, checks the powers of attorney and the reciprocity condition, and reads the deed to the parties. According to the Revenue Agency's guide, the notaio pays the registration, mortgage and cadastral taxes on registration of the deed, and then records the transfer in the land registry.

By custom, the buyer chooses the notaio, because the buyer bears the costs of the sale (Article 1475 of the Civil Code, unless otherwise agreed). The agent or the bank may suggest one, but may not impose one. Remember: the notaio is not your lawyer, and will not negotiate on your behalf or advise you whether to buy.

11What happens if you do not understand Italian?

The deed is written in Italian (Article 54 of the Notarial Law, Legge notarile 89/1913). If one of the parties does not understand Italian and the notaio does not know that party's language, an interpreter chosen by the parties, who takes an oath before the notaio, is required (Article 55). According to NotaiOnline, the interpreter signs the original and the translation, and witnesses are also required, at least one of whom, besides the interpreter, must know the foreign language. If the notaio knows the language, the deed may also be drawn up in the foreign language, with an Italian translation alongside. In any case, ask for a draft in advance and make sure you understand it.

12Can you sign from Israel with a power of attorney?

Yes, and this is the usual route for buyers who do not want to travel. The power of attorney (procura) must take the same form required for the contract itself (Article 1392 of the Civil Code), so in practice it is a notarial power of attorney. In Israel you sign before an Israeli notary and add an apostille under the Hague Convention. According to the Italian Embassy in Tel Aviv, a deed of an Israeli notary needs an apostille to be valid in Italy. If the power of attorney is not drawn up in Italian, an Italian translation is also needed.

According to the Embassy page, the notarial services of the Italian mission in Israel are provided only to Italian citizens, so an Israeli without Italian citizenship signs before an Israeli notary. It is advisable for the notaio in Italy to draft or approve the wording of the power of attorney in advance: the notaio knows which powers are needed (signing, payment, tax declarations, and sometimes a mortgage), and sometimes deposits the foreign document with them. A power of attorney missing a power may delay the signing.

13Can Israeli residents get a mortgage in Italy?

You can apply, but there is no right to obtain one. According to NotaiOnline, each bank decides based on income and collateral, and an approved mortgage is signed before a notaio, usually on the day of the rogito. It is advisable to make the preliminary contract conditional on obtaining financing.

14How much tax is paid on the purchase?

In short, according to the official guide: on a purchase from a private individual you pay registration tax (imposta di registro) of 9%, and no less than EUR 1,000, plus EUR 50 mortgage tax and EUR 50 cadastral tax. On a purchase from a developer within five years of completion of construction, VAT usually applies instead of registration tax. The reduced first-home rate (prima casa) is conditional on living in the municipality where the property is located or moving there within 18 months. Israel and Italy have a double tax treaty, signed in 1995 and in force since 1998. Details are in our separate guide on purchase taxes and IMU in Italy.

15How long does the whole process take?

There is no fixed statutory timetable, apart from the deadline for registering the preliminary contract. In an ordinary deal, a few weeks to a few months usually pass between the offer and the rogito, depending on the checks, the financing and the notaio's availability. Buyers from Israel should add time for the codice fiscale, the power of attorney and apostille, and the transfer of funds, and set a realistic deadline in the compromesso.

16Checklist for buyers from Israel

1. Obtain a codice fiscale through a representative in Italy, before the offer or immediately after it.
2. Ask the notaio to confirm in advance that there is no obstacle regarding the reciprocity condition or the documents.
3. Read the offer form as if it were a contract: validity, deposit, conditions, commission rate and payment date.
4. Carry out a preliminary check of ownership and encumbrances before the compromesso.
5. Set in the preliminary contract the type of caparra, conditions precedent and a deadline for the rogito.
6. Make sure the contract is registered within 30 days, and consider trascrizione if the period is long or the advance is high.
7. Choose the notaio yourself and obtain a draft of the deed in advance, with a translation.
8. If you will not attend the signing, prepare a notarial power of attorney with an apostille and a translation in advance.
9. Transfer funds from Israel only by documented transfers, and keep all the records for reporting in Israel.

17What to do before signing a compromesso in Italy, and how we accompany you

The deal is effectively set at the offer and preliminary contract stage, not on the day of signing before the notaio. It is therefore worth checking the documents before signing them and before transferring money. The acts that Italian law requires, such as the rogito, registration and representation before the authorities, are performed by licensed local notai and lawyers in Italy. We coordinate the process from Israel: we review the offer form and the preliminary contract, go through the documents from the perspective of an Israeli buyer, prepare the power of attorney and the apostille, and connect the work in Italy with reporting and taxation in Israel.

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