Italy Country Guide - Buying In Italy
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Italy is one of the safest countries in which to buy a house thanks to its legal
system, requiring strict procedures for property transfer. However, foreign buyers
can encounter difficulties in understanding these procedures. For this reason, our
agents in Italy will provide you all the necessary assistance to thoroughly understand
all of these procedures before taking the decision to buy a property.
INTRODUCTION
Buying a property in Italy is usually arranged in three stages:
- The first stage consists of searching, visiting and selecting the property with
the assistance of an agent (Mediatore or Agente Immobiliare). Once the property
is selected, the buyer may be asked to sign a buying proposal (Proposta d'acquisto),
and leave a small deposit with the agent.
- The second stage is that if the buying proposal is accepted by the vendor, the
next step is to sign and exchange the contract (contratto preliminare or compromesso).
This is normally a legally binding agreement to complete the purchase by a public
sales act drawn up by a notary and to pay the balance of the agreed price on a future
specified date. The preliminary sales agreement (compromesso) is a private agreement
between the buyer and seller, where the "promising" buyer and the "promising"
seller commit themselves in transferring a property. This agreement can be drawn
up by the vendor, agent or a solicitor/lawyer. Since it is a complex legal document,
it should always be submitted for advice to, or drawn up by a specialised Italian
lawyer.
- The third stage consists of the completion formalities. The sale will be completed
by a public notary when the final deed (rogito) or conveyance of transfer is signed.
The notary issues a certified copy of the deed of sale and registers the original
document with the land registry, which makes the buyer the legal owner of the property.
The notary checks that the title deeds are in order, that the property is legally
registered and that it has no illegal buildings. In Italy only a notary is entitled
to validly transfer title to property. The notary drafts the Purchase Deed (rogito),
ensures its proper execution, registration, and payment of all Italian taxes connected
with the completion.
Usually the sales price declared on the deed is lower than the actual sales price.
This is a common practice by which the buyer can lessen the impact of purchase costs
as the notary's commission and the purchaser's registration fees are based on the
declared sales price - not the actual sales price.
The notary usually charges about 1.5 - 2.5% of the declared sales price.
Solicitors and Estate Agents
In view of the legal and practical difficulties involved in buying a property in
Italy, it is highly advisable for foreign buyers to obtain the assistance of a specialised
Italian lawyer, preferably one who can speak fluent English, to act on their behalf.
He will be in charge of drawing up contracts, contacting the Notary and giving all
necessary legal advice.
Purchase Taxes
Registry taxes for buying a property in Italy are usually between 3 - 10% of the
declared purchase price:
3% for residents (only for their main residence)
10% for non-residents (or for second houses)
18% for agricultural property
Property Taxes
Non Residents owning a property in Italy have to pay the following taxes:
Income Tax (IRPEF)
Non-residents must submit a tax return stating the details of their Italian property.
If they let the property, they should declare the yearly rent, otherwise they should
only declare the cadastral rental (usually quite low). There is a no-tax area for
yearly income below €5,000.00.
The Local Community Tax (ICI)
This is between 0.4% - 0.7% of a property's cadastral value (official value in the
Land Registry), to be paid in two yearly installments.
Restoration or Construction
In order to proceed with the restoration or the construction of a building, it is
necessary to obtain the services of a licensed surveyor (Geometra), or an Architect.
All major construction or restoration works require the presentation of a request
for authorisation to the local commune, signed by the owner of the property and
a licensed technician. In the case of light restoration works (internal walls, painting,
floors, window and door frames etc.) it is sufficient to present a particular request
called a DIA (dichiarazione di inizio attività ), signed by a technician.
Mortgages
It is currently reasonably cheap to get a loan from Italian banks which lend amounts
against purchase prices of up to 100% (usually 70-80 %).
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