Understanding Deposits (Caparra) in Italy

If you decide to rent or buy a property in Italy, you will quickly come across the term caparra. It refers to a deposit paid by the buyer or tenant to secure the agreement. Knowing how it works is key to avoid misunderstandings or even scams.

👉 For a wider overview of Italy’s everyday systems, see: Italian Bureaucracy and Everyday Life.

What Is Caparra?

In Italian real estate transactions, the caparra is the deposit paid when signing a preliminary contract (compromesso). It shows the buyer’s commitment and gives the seller security that the deal will proceed.

• Typically ranges from 10% to 20% of the purchase price for property sales.

• For rentals, it is usually equal to 2–3 months’ rent as a security deposit.

There are two main types:

1. Caparra confirmatoria – the most common form. If the buyer withdraws, they lose their deposit. If the seller withdraws, they must return double the deposit.

Why Caparra Matters

2. Caparra penitenziale – less common. This functions more like a penalty clause, where either side can withdraw by forfeiting or repaying the deposit.

The caparra is not just a sign of goodwill. It carries legal weight under Italian civil code:

• It binds both parties to the agreement.

• It discourages last-minute withdrawals.

• It provides financial compensation if the deal collapses.

Risks and How to Protect Yourself

While caparra is standard practice, there are risks:

• Scams – Never hand over money without a written contract.

• Wrong terms – Ensure the type of caparra is clearly stated.

• Unverified sellers – Always check ownership through the Catasto and Conservatoria (land registry offices).

💡 Tip: Always pay your deposit via bank transfer, not cash. This leaves a clear paper trail in case of disputes.

What Happens Next?

• After paying the caparra and signing the preliminary contract, the buyer has time to complete due diligence (checking documents, zoning, liens, etc.).

• The caparra is deducted from the final purchase price at the signing of the rogito (the deed of sale before the notary).

Final Thoughts

The caparra is a vital element of the Italian property system. Handled correctly, it protects both buyer and seller. Handled poorly, it can lead to disputes and losses. Take your time, involve a notary, and never transfer funds without a signed agreement.