Guide to Buying Property in Italy

Buying a Property in Italy
There are no restriction for non-residents wanting to buy a property in Italy, but you will need to apply for the tax identification number, being registered with the Italian tax authorities, the so called CODICE FISCALE.

The procedure of buying a property starts with an examination of the paperwork relating to it, as the information held by the public land registries which inform all the facts concerning ownership, charges and debts that can affect a property. This information is contained in a certificate and is protected by law. Title deeds of the property and related documents will be checked by us in order to take the decision about carry on with the purchase or not.

Italian law requires all contracts relating to land or buildings to be in writing, signed by both parties. An English translation of it will be provided with the contract.

“OFFERTA” You can be offered a reservation contract, reserving the right to buy the property for a fixed period of time by means of the payment of a small deposit. Once you are happy with the terms of the contract, we will instruct you to pay a preliminary deposit, usually about € 3.000,00 . This should be followed by signing the main contract, two to three weeks later, after checks on the property have been carried out.

“COMPROMESSO” It is a private contract of escrow signed by the buyer and the seller (or their representatives). The buyer must produce a deposit guarantee (usually between 10% and 30% of the purchase price) to the seller, which will engage both the buyer and the seller in a contract to complete the sale within an agreed period of time. If the seller does not complete the sale, he is required to refund the deposit in full plus the same amount again as a penalty for damages. If the buyer does not complete the sale, he will forfeit the full amount of the deposit.

“ROGITO” The public title deeds of purchase will then be signed in completion of the sale at the notary’s office. The Italian Notary purpose is to witness the signature of the title deed and other administrative functions. Buyers become the sole owners and the property is immediately registered in their name. The Rogito can be signed in your absence in person or through us as your representative by means of a Power of Attorney. In this moment the balance of the price of the property must be paid, and also the tax funds must be issued.

TAXES and FEES
Payment of taxes and fees must be available the same day as the signature of the deeds. The possible amount of these costs will be specified in a breakdown of costs.
Taxes depends on the kind of the property and the kind of seller. Land Registration tax is the main tax on property purchases. It depends on the kind of the property and the kind seller. Its amount is 10% of the declared value for an urban property, (3% if it is a first home and only for residents).
The declared value is based on the official value of the property which depends on the local commune, the category and location of house and the size. This is generally considered less than the actual purchase price.

NEW PROPERTY: Value added tax – IVA is 10% on new non-luxury properties and at 20% on luxury homes and is included in the price charged by the builder or developer.
If you build your own home you pay a reduced rate of VAT at 4%
Estate Agents fees. These would usually be 3% - 5% of the total declared value of the property.

NOTARY’S FEE . This amounts to approximately 2.5% of the total declared value of the property, with a minimum charge of approximately € 1.300,00. Bear in mind that there can be variation between notaries.
You will also pay the GEOMETRA’s FEE for the conveyance of the property. These can vary between € 500 and € 2.000 depending upon what work is involved in the conveyance.

AFTER THE PURCHASE
Annual Tax – The ICI (Imposta Comunale sugli Immobili) is an annual council tax calculated on the value of the property. It is payable twice a year in June and December. It can be paid once in December for non residents.

UTILITIES: water, electricity, gas, telephone

CONDOMINIUM EXPENSENS – If you are a buyer of a property which is part of a group of properties which share some communal areas you will be required to pay condominium expenses.
RUBBISH tax

FUNDS
You will need to have a bank account in Italy in order to organize the final payment of the price of the property and taxes and to set up the direct debits for council taxes and utilities. We can help you opening your bank account through our partnered local banks, which will give you access to an online banking account so you can check, make payments and receive payments even when you are home.