Guidelines to buy a property in Italy

The law in Italy carefully monitors the legal purity of real estate transactions, so the foreign buyer can be assured of maximum transparency of procedures.

Foreign citizens can can purchase a property in Italy only if there is an international treaty between Italy and your country of origin that permits a condition of reciprocity. In other words, a foreigner can purchase a property in Italy only if an Italian citizen can purchase a property in the foreigner’s country. This condition is referred to as “reciprocità” (reciprocity).

The process of buying property in Italy is clear regulation of Italian law. When searching for a house in Italy it is strongly recommended that you use an estate agent fully licensed by the Chamber of Commerce. So to purchase a property in Italy, you need to:

• Get a tax identification number;
• Sign the preliminary contract;
• Sign the final notarial deed of purchase;
• Pay local purchase taxes.

Tax identification number (Codice Fiscale)

The first step for foreign citizens who are going to buy a home in Italy is to get a tax identification number. The Codice Fiscale is an official document released by the local Agenzia delle Entrate, containing an alphanumeric code of 16 characters. The Codice Fiscale serves for the notarial deed for the property purchase, and also for opening of bank account in Italy. It is also used to uniquely identify you for tax purposes, regardless of your country of residence. To obtain your Fiscal Code, simply go to the Italian consulate in your country and request it.

The preliminary contract (Compromesso)

After selecting the property and verify the regularity of the building construction by our Surveyor (Geometra), you can proceed with the purchase. The sale procedure begins with the signing of the preliminary contract so-called offer to purchase which specifies all the details of the property, price, terms of payment, and including the amount of deposit (is usually 10% -20% of the declared value of the property), and agent's fees. The estate agent's fees amount to 3-5% of the purchase price. It is important to note that if you withdraw from the sale after signing the Compromesso, you lose your deposit. However, if the seller with draws, he must pay you double your deposit.

The preliminary contract must be registered with the Revenue Agency within 20 days of signing, with a payment of 236 euros for registration plus 0.5 proc from the confirmatory deposit.

The final notarial deed (Atto notarile)

The final stage involves signing The purchase agreement (Contratto di compravendita) in the office of a Notary (Notaio). The Notary (who is a public official under Italian law) will intervene in the acquisition process and inspect all the documents necessary for the purchase that the real estate agent will provide. Notaries act on behalf of the Government and NOT on behalf of the buyer or seller and are completely neutral. It is important keep in mind that at the time of signing the main contract the buyer is obliged to pay taxes and notary fees, only after the signing of the deed will be possible. Notary fees depends on the complexity of the act and the value of the property (the higher value the less %). On average, the cost of notary services is not more than 3%. The notary sends all the information to the competent authorities - Real Estate Registry, Cadastral Office, Tax Office. Registration of property rights requires from five days to two months, depending on the municipality where the property is located. However, property passes to the new owner at the time of signing of the deed, together with the property keys.

The purchase taxes

Owner of new properties must pay the Purchase Taxes, which is levied at 2 % for first home resident buyers, at 9 % for second home and non-resident buyers, and at 20 % on luxury homes, for the land is always 12% of the cadastral value. Moreover is levied the registration tax on the cadastral value (9%) and add the mortgage and cadastral taxes for a total of 100 euros (50 euros for each).
Yearly:
Every year you have to pay taxes on trash (TARI), which are calculated on the basis of square meters of the house, and tax on real estate (IMU), which is calculated on the basis of the cadastral value of the property.

For more information Contact Us
We are at Your service!!!