Buying a property in Italy: all you need to know

Purchase process

Buying a property is different from country to country. We hope this short explanation will help you to understand things better about the process in Italy.

CHOOSE A PROPERTY
Find the right house in the right place.
MAKE AN OFFER
If you have the possibility you can complete an offer form where you'll describe the amount of the offer, the conditions, when you'll pay the deposit and the date of the Final Contract. If the offer is not accepted, you'll have your deposit back.
PRELIMINARY CONTRACT/AGREEMENT
Written in both Italian and your own language, it is a private agreement between the purchaser and the seller. This document should be prepared by a professional (estate agency) and it will define the selling conditions such as...
all the exact details of the property, rights of way, payments, time of possession, guarantee by the seller by the lack of morgages...
Usually, when signing the preliminary contract, the purchaser will pay a deposit of about 20% of the established amount but this can be discussed then according to your needs.
If the sellers pull out after the preliminary is signed they have to pay you the double of your deposit. If you pull out, you'll lose your money. This protected the purchaser from the seller selling to another bidder.
Between the preliminary agreement and the Final Contract in front of the notary, we consider a wait of one to three months (depends on the complexety). This time will be used to prepare all the documents.
Note that sometimes it is possible to skip the preliminary and just do the Final Contract.
OBTAIN THE "CODICE FISCALE"
Italian tax code available from the tax office. You need one to buy a property in Italy and to open a bank account and it is completely free. That's important and essential to have a codice fiscale and an Italian bank account to do the Final Contract.
OPEN A BANK ACCOUNT
You'll need to open one because it will be necessary to transfer funds to your Italian bank account before signing the Final Contract. Please let your bank know that all expenses have to be paid by the sender (you) and make sure the correct and full amount will arrive into the account of who should receive the money.
Then the bank will prepare you for the Final Contract cheques (assegni circolari) you need to pay over to the seller.
FINAL CONTRACT
We sign it in front of a Notary (notaio), the professional authority to execute legal sale.
The Notary has to control and guarantee the property clear title and take care of any other problem pertinent to the property.
The sale taxes are paid by the buyer and the amount will depend on the declared price.
You need to be present to sign the documents in front of the notary and if you don't speak fluent Italian you'll be assisted by a qualified translator and the contract will be read out in both Italian and your own language.
At the closing you'll have to pay the balance of the transaction, the notary, the taxes and whatever expense is required to complete the contract.
Taxes are paid on the declared value.

...now you officialy become the lucky owner of the property.

Services

Il Castello offers all international clients a full, English-speaking advisory service. We endeavour to assist and advise you every step of the way with the purchase of your Italian property. All the services listed below are included within the 4% agency commission charged to all clients. Please note, contrary to estate agency procedure in the UK, Italian estate agencies charge commission to both the vendor and the purchaser.

Fixing appointments for viewings
ItalianEnglish translator present at all property viewings and at all meetings prior to and during the purchase process.
Full explanation in English of Italian real estate processes
Establishing contact with the vendor
Assisting with negociations with the vendor
All documentation and contracts prepared in Italian and English.
Assistance obtaining an Italian tax code from the tax office in Perugia
Assistance opening an Italian bank account
Assistance applying for an Italian mortgage
Assitance finding certified translator for the signing of the final contract
Present at signing of final contract at Notary's office
Coordination of all tax issues
Coordination of local authority requirements
Assistance and coordination of accounts and payments to water, electricity and gas boards and telephone company
We will also gladly provide:-
Advice on where to stay locally while you are house-hunting/ buying your property.
Introductions to local architects, builders, electricians, plumbers etc
Introductions to English-Italian speaking project managers for the coordination of all renovation work.

Fees

When purchasing a property in Italy you will be required to pay fees to the Notary and the estate agency and tax on the price of the property. These fees are listed and explained below.

Taxes

Unlike the UK, in Italy each property has a sale price (that which is paid to the vendor) and a "declared value". The "declared value" is registered at the "catasto" (land registry office) and this registration process is called the "visura catastale". Please note that the "declared value" tends to be lower than that paid to the vendor. Taxes are however only paid on the "declared value".

If you are planning to come and live in Italy permanently

If this is the case and you do not own another property in Italy you can apply for Italian residency. If you are a resident or are planning to apply for residency within 18 months of signing the final contract you will be required to pay the "Imposta di Registro", this is a tax of 3% of the "declared value" of the property, plus €250. This tax is increased to 4% if you are acquiring the property from a company rather than from a private vendor.

If your Italian house is to be a holiday home (Or if you already own a property in Italy)

If so, you will be required to pay the "Imposta di Registro", this is a tax of 10% of the declared value of the property.
The "Imposta di Registro" tax is 18% on agricultural land.
NB: If you buy a property as your "first home" then do not apply for Italian residency you will be required to pay a further 7% on the declared value as well as a fine.

Il Castello is happy to discuss and advise on all residency and tax related issues.

Notary Fees

Notary fees vary according to the declared price of the property and the chosen notary.
If you are not a fluent Italian speaker you will be required to pay for a certified translator for the signing of the final contract.
If you are taking out an Italian loan or mortgage to purchase a property in Italy you will have to pay for the "atto di mutuo", this is the contract between you and the bank which has to be registered by a notary.

Agency Fees

In Italy both the vendor and the purchaser pay commission to the agency. Il Castello charges 4% commission to international clients. VAT has to be paid on this commission.
Il Castello is happy to request a full estimate of fees from a notary prior to signing the preliminary contract.

Once you own the property

The following utility bills will need to be paid, prices are calculated according to consumption.

Electricity (every two months)
Gas (every two months)
Telephone (every two months)
Water (approx. 3 times per year)
Waste/ Rubbish tax (annually)
ICI is the council tax that will need to be paid on the property twice a year, in June and December