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BUYING A PROPERTY IN ITALY

IMPORTANT INFORMATION ON PURCHASING A HOUSE IN ITALY.

Please read our Terms and Conditions

There are no restrictions placed upon non-residents wishing to purchase a house in Italy, be they from Europe or elsewhere.

When searching for a house in Italy it is strongly recommended that you use an estate agent fully licensed by the Chamber of Commerce, and employ the services of solicitor specialising in Italian property purchases.

Please remember that estate agents in Italy represent both the buyer and the seller and aim to negotiate to reach a settlement favourable to both parties.

Optional - PROPOSTA IRREVOCABILE D’ACQUISTO – If you see a property you love and don’t want to risk losing it, perhaps because you need time to organise the 30% payable at compromesso (see below) you can immediately sign a PROPOSTA IRREVOCABILE D’ACQUISTO – an irrevocable purchase agreement – which is signed by buyer and seller when you have agreed the price, and which identifies both parties, the property in question, and gives an expiry date for signing the compromesso (see below) When you sign you pay a deposit by cheque in any currency for the equivalent of usually 2000 – 3000 euros (more if the house is a high value), which is not cashed but held by the notary or the agency, and returned to you when you sign the compromesso. If you change your mind you will forfeit the deposit, as the owner will have effectively taken the property off the market for a certain period of time. If the sale does not go ahead in the specified date through no fault of your own, then your deposit will be returned to you.
Alternatively a preliminary agreement is often signed where a small payment on account is made - say 5000 or 10,000 euros. When the compromesso is signed the amount already paid is deducted from the 30% due at compromesso.

STEP 1 - COMPROMESSO
The 'contratto preliminare' or 'compromesso' is drawn up.

This is a legally-binding document which states the agreed sale price, the completion date, and the deposit to be paid at the signing of this contract. It can vary between 15 - 50% but is usually about 30% of the purchase price. It may also include any other relevant legal details.

Once this contract is signed and the deposit (caparra) paid, the seller may only back out if he pays DOUBLE the caparra amount to the buyer or should the buyer wish to back out, he will lose his deposit.

The 'compromesso’ is a standard contract which describes the property as it appears in the land registry. The seller also states that the property is unencumbered by legal or financial liabilities, and would be liable should any arise.

Since Jan 07 it is a legal requirement that compromessi be registered with the tax authorities, and 0.5% of the deposit paid as part payment of taxes to the tax office, in addition to registration fees of €168 and 3 stamps of €45 in total. We will register the compromesso for you and you will need to pay these costs.

THE AGENCY FEE of 2% (with a minimum of 2000 euros / approx £1350) plus VAT is payable when the compromesso is signed. Please note, for some of our properties we refer you to other agents, and their fee may be higher.
Please read our Terms and Conditions

STEP 2 – CONTRATTO / ATTO / ROGITO
The final contract or 'l'atto notarile' is usually signed 1 - 3 months later (the date having been set in the compromesso). It is signed by both parties, the balance is paid and the property is officially transferred.

The buyer and the seller are required to be present at the notary's office for the signing of the notary deed. If the buyer or seller cannot be present we can organise power of attorney (at a cost of €250) If the buyer wishes to be present but the notary considers that he/she does not speak good enough Italian to understand completely, then the agent or other Italian speaker can sign on the buyers’ behalf.
The purchase taxes and notary fees due are payable when you sign the final contract.

If you can’t /don’t wish to be present - Special Power of Attorney – We draw up the power of attorney agreement which is emailed/faxed/sent to you and you need to print it off and sign it in the presence of a solicitor. You then need to send or take it to the Foreign Office in your country (In the UK, in London) who need to stamp it (small fee of around £5 /9 euros payable) and it is then sent to us in Italy. We can then sign compromesso or final contract or both on your behalf, without the need for you to come to Italy.

As well as paying the balance for the property, the buyer must also pay:

* PURCHASE TAX - which is either 4% (3% plus various small taxes) if the buyer purchases the property as his first residential home in Italy and applies for residency in the local area, or 11% (10% plus various other taxes)for the property and 17% for the land if the foreign buyer already owns property in Italy or does not wish to apply for residency. NB Between private individuals the tax is calculated on the declared value of the property and not the purchase price ie. On the cadastral (land registry) value which is often 50% or less of the real value. The declared value of land is usually extremely low, unless it is valuable land such as olive groves or building land.
Recent changes in the law mean that it is now legal to pay taxes on the cadastral value rather than the market value. In the past although this was often done and was condoned by many, but was not legal.(PAYABLE WHEN YOU SIGN THE FINAL CONTACT)

NOTE: If you are buying from a company rather than a private individual (often the case if you are buying an apartment in a new or restored complex) then you will pay 10% VAT to the vendor instead of purchase tax to the notary. The 10% is calculated on the market price of the property you are buying, and not on the cadastral value.

* NOTARY'S FEE - both parties pay the notary a fee of approximately 1-2% of the value of the property. (PAYABLE WHEN YOU SIGN THE FINAL CONTACT)

* TECHNICAL ASSISTANCE - GEOMETRA FEES Typically 500 euros plus vat. The geometra (like a surveyor) will check all the documents for the house are up-to-date and legal, that buildings are have fully registered title and that the house complies with planning regulations. Please note this is not the fee for a structural survey. The fee for this is also usually 500 euros plus vat, depending on the property, and the cost of an English translation is usually £40 (€60)plus VAT.

* TRANSLATOR/INTERPRETER If you do not speak Italian (to a standard well enough to understand legal contracts) then you will need a translator/interpreter to be present at the signing of the notary deed. Costs vary widely but are usually between €200 - €350 plus vat


RUNNING COSTS

Annual Taxes - The 'Imposta Comunale sugli Immobili' is an annual council tax determined by the size and quality of the property. It is not very high, about 100 - 200 euros. (PAYABLE TWICE A YEAR IN JUNE AND DECEMBER)

Refuse tax – very small – payable in 4 installments or all at once if your prefer.

Utilities – electricity, water, gas/oil etc for heating, phone

Condominium expenses – if you buy a property which is part of a group of properties which share some communal areas – gardens, driveway, swimming pool, tennis court etc. then you will be required to pay condominium expenses. They vary as to the type and size of communal areas on the property.

The easiest way to pay most of these is by direct debit or online, although some you will need to pay at the post office.

PLEASE NOTE: in order to purchase a property in Italy you will need a 'codice fiscale' - a tax code and a bank account. Casa Tuscany can sort all this out for you.

We can also advise on how utility contracts can be transferred to you, usually by preferring you to a property manager who will carry out this service for a fee (usually about €200) and work with local architects, planners and many trusted and qualified professionals should you be thinking of renovating/ updating your home. Building work in Italy usually involves many 'permessi' - permits and we can assist you in making sure all your plans come to fruition as smoothly and as quickly as possible.

We can also help you with arranging insurance.

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