If you are buying property in Italy from the UK, the GBP/EUR exchange rate will move your final cost more than any fee you negotiate — a few cents either way changes the sterling price of a €300,000 home by more than £11,000. The reliable approach is to plan the currency from the start: budget at a cautious rate, fix your rate with a forward contract between the compromesso and completion, and send funds through a specialist rather than a high-street bank.
Who this guide is for
UK-based buyers purchasing Italian property in euros — Tuscan farmhouses, Puglian trulli, lake-district apartments, city flats in Rome or Milan, and the famous €1 renovation projects with their not-so-famous renovation budgets. It covers how the payments are staged under the Italian system, where the currency risk sits, and the tools that remove it. UK citizens can still buy freely in Italy after Brexit; for the legal and residency side, start with the UK government’s official guidance for living in Italy and use an independent Italian lawyer alongside the notaio.
How much does the exchange rate matter on an Italian purchase?
Take a €300,000 purchase:
- At GBP/EUR 1.18, the property costs £254,237.
- At 1.13, the same property costs £265,487.
That is more than £11,000 of difference on the price alone, created purely by the rate moving between your offer and your completion — a window that commonly runs two to four months in Italy, and longer on rural purchases with planning checks. The direction of GBP/EUR over that window hinges largely on the Bank of England and the European Central Bank, which nobody can call with certainty — we track the drivers in our pound to euro forecast, but for a committed buyer the practical answer is to remove the uncertainty rather than predict it.
When the money moves: codice fiscale, compromesso and the rogito
- Setup. Before buying you need a codice fiscale (Italian tax code), and in practice an Italian bank account helps for completion funds, taxes and utilities.
- The offer (proposta d’acquisto). A written offer, usually with a small deposit, that becomes binding once the seller accepts.
- The compromesso (contratto preliminare). The preliminary contract commits both sides, with a deposit (caparra) of typically 10–20%. Withdraw afterwards and you lose the caparra; if the seller withdraws, they normally owe you double.
- Completion (rogito). The final deed is signed before the notaio — a public official acting for the Italian state — with cleared euros in place for the balance, the taxes and the fees, or the signing cannot happen.
The gap between the compromesso and the rogito is where the currency risk concentrates: you are committed to a euro price while your money is still in pounds. Completion funds are also a known target for email interception fraud, so verify account details by phone before sending anything — our guide to conveyancing fraud and overseas deposit scams covers the checks.
Your options for paying in euros, compared
| High-street bank | Transfer app | Specialist currency broker | |
|---|---|---|---|
| Exchange rate margin | Often 2–4% for retail customers | Lower margin, plus per-transfer fees | Typically well under 1% on property-sized sums |
| Transfer limits | Daily online caps can block six-figure payments | Platform caps can apply | No platform cap — built for completion-sized payments |
| Forward contracts | Rarely offered to retail customers | Not offered | Yes — fix today’s rate from compromesso to rogito |
| Support | Call centre | In-app chat | Dedicated specialist by phone who knows your completion date |
Whichever route you take, verify the provider first — see choosing a trustworthy currency broker for a property purchase.
Fixing your rate: spot, forward and market orders
A spot transfer suits the early costs and the caparra — money needed now. A forward contract locks today’s rate for the completion balance, usually for a small deposit: sign the compromesso in June with the rogito in September, and a forward fixes your sterling cost on day one. The trade-off is symmetrical — if the pound strengthens, you do not benefit; a forward buys certainty, not a better rate. A market order targets a better level automatically for buyers with flexible timing. All three are explained simply in our guide to the currency tools most people don’t know they can use.
“Italian purchases run on the notaio’s calendar, not yours — and that gap between compromesso and rogito is where buyers quietly lose money,” says Anthony Bull, CEO of Cambridge Currencies. “In our experience with buyers from Tuscany down to Puglia, the ones who fix the completion balance the week they sign the preliminary contract never have to think about the exchange rate again. The ones who don’t are checking the rate every morning for three months, and the market doesn’t care that they’re committed.”
Budget for the full cost of buying in Italy
On top of the price, budget for registration tax — 2% for a main residence or 9% for second homes, generally calculated on the cadastral value for resale properties — or VAT on new builds, plus notaio fees, legal fees and agency commission (commonly around 3%, and in Italy often payable by the buyer as well as the seller). Every one of those costs is in euros and carries the same exchange-rate exposure as the price itself, so budget at a cautious rate. If you are financing with a euro mortgage while earning in pounds, the repayments are a currency exposure of their own — see our international mortgage and currency guide.
Common mistakes to avoid
- Budgeting at today’s best rate. Build in headroom or fix the rate — a 3% move against you breaks a tight budget, and renovation projects multiply the exposure.
- Leaving the conversion until completion week. You become a forced seller of pounds at whatever the market offers on rogito day.
- Using a bank by default. The margin difference on a €300,000 completion can run to several thousand pounds — see transferring large sums internationally.
- Forgetting the renovation drawdowns. A restoration paid in stages is a series of currency transfers — each one can be planned, fixed or targeted rather than converted ad hoc.
- Skipping verification. Confirm the notaio’s or lawyer’s account details by phone before sending the caparra or completion funds.
Frequently asked questions
Can UK citizens buy property in Italy after Brexit?
Yes — there are no restrictions on UK citizens buying property in Italy. Brexit changed residency rights (the 90/180-day rule applies for stays without a visa), not the right to own property.
What is the best way to pay for a property in Italy from the UK?
Most buyers convert pounds to euros through a specialist currency broker and send the funds ahead of the rogito. A specialist typically offers a tighter margin than a bank and can fix the completion rate in advance with a forward contract.
What is the compromesso and how much is the caparra deposit?
The compromesso (contratto preliminare) is the preliminary contract that legally commits both parties. The caparra deposit is typically 10–20% of the price — if you withdraw you lose it, and if the seller withdraws they normally owe you double.
Do I need a codice fiscale to buy property in Italy?
Yes — a codice fiscale (Italian tax code) is required for the purchase, taxes and utilities. It is straightforward to obtain through the Italian consulate or a local tax office, often via your lawyer.
How much are buying costs in Italy on top of the price?
Plan for registration tax of 2% (main residence) or 9% (second homes), generally on the cadastral value for resale homes, or VAT on new builds — plus notaio, legal and agency fees. Combined costs vary widely by property type and use, so confirm the figures for your specific purchase with your lawyer.
Should I use a forward contract for an Italian property purchase?
A forward suits buyers who have signed the compromesso but complete weeks or months later, because it fixes the sterling cost immediately. It is a certainty tool: if the pound strengthens before the rogito, you do not benefit.
Is my money safe with a currency broker during the purchase?
Funds sent through authorised payment institutions must be safeguarded under FCA rules — held separately from the firm’s own money. Cambridge Currencies operates with FCA-authorised partners Currencycloud (FRN 900199) and ScioPay (FRN 927951), and client funds are held in safeguarded accounts.
Planning an Italian purchase? Talk it through first
Whether you are budgeting before a viewing trip or already have a rogito date in the diary, a ten-minute call will give you a live GBP/EUR rate against your numbers and show exactly how a forward would fix your completion cost. Every Cambridge Currencies transfer is handled by phone with a dedicated specialist who will track your notaio’s timetable as closely as your lawyer does. Request a quote for your Italy property purchase.
